Adeosun: CBN to channel SMEs’ intervention funds to DBN

The Minister of Finance, Mrs. Kemi Adeosun, has stated that the Development Bank of Nigeria (DBN) will galvanise the Small and Medium Scale Enterprises sector for the overall development of the nation’s economy.

To make that happen, Adeosun said the Finance Ministry is in discussion with the Central Bank of Nigeria on the need to use the Development Bank as a vehicle for any of its subsequent SMEs intervention.

According to her, the present administration is aware of the role of SMEs in national economy, hence the resolve to position the DBN as a catalyst for the development of the SMEs. The wide range of SMEs is a reflection of our economic diversity.

The minister, who spoke during a Board/Management/Development partners’ retreat of the DBN in Abuja, also assured the Board that the Federal Government was ready to provide support for the new development financial institution.

The DBN had convened its development partners and incoming management team and Board of Directors for an inaugural strategy retreat, in order to ready itself for immediate operation upon the issuance of its license by the Central Bank of Nigeria (CBN).

She decried the present situation where SMEs account for 45 per cent of the Nigeria’s Gross Domestic Product (GDP) but just 10 per cent of bank credit.

She pointed out that currently, Nigeria’s financing of MSMEs lagged significantly behind other countries, including Brazil (63 per cent), Ghana (36 per cent), China (30 per cent), Kenya (24 per cent), and South Africa (21 per cent).