The Development Bank of Nigeria Plc (DBN) has pioneered a comprehensive financing framework designed to close credit gaps and empower women and young entrepreneurs within the Micro, Small, and Medium Enterprises (MSME) landscape, according to financial expert Adegboyega Bashir.
Bashir highlighted that DBN’s innovative strategy has been instrumental in nurturing MSME expansion nationwide by improving access to capital, enhancing skills, and promoting employment opportunities.
Addressing recent media critiques, he underscored the bank’s significant achievements, including the generation of approximately 1.2 million jobs that positively impact families and supply chains throughout Nigeria.
Distinct from traditional commercial banks, DBN functions as a wholesale development finance institution, distributing funds through Participating Financial Institutions (PFIs) such as Deposit Money Banks, Microfinance Banks, and other financial intermediaries.
Rather than providing direct loans to MSMEs, DBN focuses on empowering entrepreneurs via specialized capacity-building programs. These initiatives equip business owners with critical competencies in areas like credit management, financial accounting, sustainable practices, and marketing strategies. Upon completion, MSMEs gain access to loans from PFIs under more advantageous conditions, including reduced interest rates compared to standard lenders.
This model effectively tackles typical obstacles MSMEs encounter when seeking financing, such as insufficient collateral or limited credit history.
By the end of 2024, DBN had disbursed over N1 trillion through 79 PFIs, reaching 721,819 MSMEs across Nigeria. Impressively, 76 percent of these loans supported women-led enterprises, while 26 percent were directed to youth-owned businesses, reflecting the bank’s dedication to fostering inclusivity and economic empowerment.
In addition to funding, DBN has made substantial investments in knowledge sharing through its DBN Enterprises Training Programme (DBNETP), which has trained upwards of 9,500 MSMEs in 12 cities spanning Nigeria’s six geopolitical zones.
The bank further strengthens the financial sector by offering training to PFIs through its Community of Practice Programme, benefiting over 35 institutions and expanding the MSME financing network to a total of 79 entities.
Bashir concluded that DBN’s blend of inclusive financing and capacity development continues to bolster Nigeria’s MSME ecosystem, fostering sustainable economic growth and community development nationwide.
