In a move aligned with President Bola Tinubu’s ambitious economic reform agenda, the Development Bank of Nigeria (DBN), has unveiled plans to dramatically scale up its support for Micro, Small, and Medium Enterprises (MSMEs).
The bank aims to expand its outstanding loan portfolio to over N1.8 trillion within the next five years, a substantial increase designed to unlock the immense potential of Nigeria’s small business sector.
Dr. Tony Okpanachi, the Managing Director of DBN, shared these ambitious targets with newsmen in Lagos, emphasising the bank’s commitment to mobilising N3 trillion in debt and equity.
This significant financial injection is strategically aimed at improving access to crucial funding for MSMEs, a sector widely recognised as a vital engine for economic growth, innovation, and job creation in Nigeria.
This initiative directly supports the Tinubu administration’s focus on fostering a thriving private sector and empowering local businesses as key drivers of economic prosperity.
Building on its initial successes, where it has already provided N631 billion in financing support through Participating Financial Institutions (PFIs), DBN is now setting its sights on a more inclusive and impactful approach. Dr. Okpanachi, underscored that the bank’s strategic objectives extend beyond mere financial expansion.
A core tenet of their new five-year plan is a strong emphasis on inclusive growth. This translates into concrete targets, with DBN aiming to allocate 20% of its loans to women-led businesses and 40% to enterprises owned by economically disadvantaged Nigerians. This focus directly addresses the economic reform agenda’s commitment to ensuring that growth is equitable and benefits all segments of society.
Furthermore, DBN is demonstrating its commitment to sustainable development by planning to double down on green financing initiatives.
This will support MSMEs that are adopting environmentally friendly practices and contributing to a greener economy, aligning with global sustainability goals and the long-term vision of the economic reforms.
The bank will also prioritise support for businesses operating in underdeveloped states, actively working to reduce regional disparities and foster balanced economic growth across the nation. This strategic focus on inclusivity and sustainability showcases DBN’s innovative approach to development finance, going beyond traditional lending practices.
This ambitious scale-up is projected to have a significant impact on employment, with DBN aiming to facilitate the creation of at least two million jobs, both directly and indirectly, over the next five years. This builds upon the 1.2 million jobs the bank estimates it has already enabled in its first five years of operation.
Dr. Okpanachi emphasised the bank’s strategic focus on “targeting sectors like manufacturing and agriculture—areas that are labour-intensive and hold the potential to absorb large segments of the workforce,” directly contributing to the job creation objectives of the economic reform agenda. While pursuing this aggressive growth, DBN remains committed to financial sustainability, ensuring its long-term viability as a crucial development partner.
To achieve these ambitious goals, DBN is actively pursuing a diversified funding strategy, exploring both local and international partnerships. The bank is currently engaged in discussions with international financial institutions and is also exploring opportunities within the domestic capital markets, including a planned bond programme contingent on favorable macroeconomic conditions.
Dr. Okpanachi clarified that DBN operates as a wholesale development finance institution, working through a network of financial intermediaries to amplify its reach and impact across various sectors of the Nigerian economy. This model allows DBN to strategically leverage existing resources and attract new partnerships, further enhancing its capacity to support MSMEs in line with the economic reform policies.
DBN’s recent achievements underscore its existing impact, having disbursed over N1 trillion to MSMEs through 79 participating financial institutions nationwide. Notably, a significant portion of this support has reached businesses in economically disadvantaged states, including Borno, Yobe, Katsina, Zamfara, and Adamawa, demonstrating a commitment to regional inclusion.
Furthermore, 74% of the beneficiaries of DBN’s financial interventions have been women, and 25% were youths, highlighting the bank’s focus on empowering critical demographic groups. Beyond financial support, DBN has also invested in human capital development, providing training to over 9,500 MSMEs across Nigeria, equipping them with the skills and knowledge necessary for sustainable growth.
This multi-faceted approach, combining financial support with capacity building, positions DBN as a key enabler of the Tinubu administration’s economic reform agenda, fostering a more resilient, inclusive, and prosperous MSME sector in Nigeria.
