Dipo Olowookere
By Dipo Olowookere
The newly established Development Bank of Nigeria (DBN) is planning to provide credit facilities to about 20,000 Small and Medium scale Enterprises (SMEs) in the country in its first year of operations.
According to the Chief Executive Officer of the lender, Mr Tony Okpanachi, this would be done through the help of commercial banks and microfinance institutions in the country.
Mr Okpanachi told Reuters that lending to small businesses operating in Nigeria by DBN will commence in August this year with up to 12 years’ maturity.
However, he said the bank would target sectors that will maximally impact the economy.
“The focus is on new loans. We know agriculture is a focus area, we will encourage that.
“We know other small industries. We would also try to encourage those sectors that will give maximum impact to the economy,” the DBN chief told Reuters.
DBN was recently licensed by the Central Bank of Nigeria (CBN) to operate in the country. It has a start-up capital of about $1.3 billion, contributed by the Federal Government, African Development Bank (AfDB), European Investment Bank, World Bank and KfW of Germany.
The bank was set up to assist small businesses in Nigeria grow, especially with the provision of credit facilities in order to make them grow into bigger enterprises.
And Mr Okpanachi has promised that the lender will not deviate from its main purpose of establishment.
He noted that the development bank will strive to secure a credit rating from an international agency and to raise fresh capital within three to five years of operation.
