DBN Says N100bn MSMEs’ Loans Create 3,192 Jobs in 2019
AMINA HUSSAINI, Abuja
Development Bank of Nigeria Plc (DBN) says it disbursed over N100 billion to over 100,000 Nigerian Micro, Small and Medium Enterprises (MSMEs) through which additional 3,192 jobs were created in 2019.
The Managing Director, Tony Okpanachi, disclosed at the third annual general meeting of the development institution held virtually in compliance with Federal Government and National Centre for Disease Control (NCDC) social distancing guidelines.
“So far, 3,192 jobs have been created leading to an increase of 10 percent in MSMEs revenue and 6.8 percent increase in value of their land assets”, Okpanachi said.
During the period reviewed, 52 percent of loans disbursed were to youths and women-owned businesses in line with its commitment at promoting economic empowerment and gender equality.
The DBN, according to Okpanachi also set up a Credit Guarantee Subsidiary, Impact Credit Guarantee Company Limited to de-risk the MSME sector by sharing risks with the PFIs to encourage them to lend to this critical sector of the economy.
He added that DBN also delivered capacity building programs for MSMEs across the six geopolitical zones of the Federation.
Okpanachi assured shareholders that, “the Bank was on the right trajectory and focused its strategy on driving sustainable economic growth.
He informed that the Bank was currently expanding its distribution network to include other non-banking financial institutions and working on some concessions to PFIs as well as de-risking of SME lending through the subsidiary, ICGL to increase participation.
He said the strategy will also cover delivery of technical assistance to PFIs and capacity building programs for MSMEs all geared towards encouraging uptake of the DBN funds by PFIs for on lending”.
In his remark, Chairman of the Bank, Shehu Yahaya commended the Federal Government for its commitment and efforts as well as the selfless health workers for their dedication towards tackling the deadly COVID 19 pandemic.
He expressed his condolences to those who have lost loved ones while celebrating the gallantry of survivors, stating that “their gallantry gives us hope that we will emerge victorious from this deadly pandemic”.
Development Bank of Nigeria Plc is a wholesale development finance institution, established by the Federal Government of Nigeria in collaboration with global development partners (The World Bank, AfDB, Kfw, AFD and EIB) to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.
DBN carries out this function by providing financial institutions, predominantly Deposit-Money and Microfinance Banks with on lending facilities designed to meet the needs of this segment. The bank commenced operations in 2017.
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