De­vel­op­ment bank dis­burses N100bn to MSMEs

Business a.m. - - FINANCE & INVESTMENT -

THE DEVEL OPMENT BANK of Nige­ria Plc said said it has dis­bursed over N100bn to mi­cro, small and medium en­ter­prises in 2019, lead­ing to the cre­ation of 3,192 jobs.

A state­ment by the bank re­ported Tony Ok­panachi, its man­ag­ing director, as dis­clos­ing this in his ad­dress at the bank’s vir­tual 3rd an­nual gen­eral meet­ing held re­cently in Abuja.

While giv­ing a score­card on the DBN’s ac­tiv­i­ties and con­tri­bu­tion to the Nige­rian econ­omy, he said the bank work­ing through its par­tic­i­pat­ing fi­nan­cial in­sti­tu­tions had fa­cil­i­tated in­crease in the MSMEs’ rev­enue as well as their as­sets.

He stated that the DBN had fo­cused on en­gen­der­ing gen­der equal­ity in its loan dis­tri­bu­tion and em­pow­ered youths with 52 per cent of the to­tal loan dis­bursed to this seg­ment in 2019.

“Through our 27 par­tic­i­pat­ing fi­nan­cial in­sti­tu­tions, over N100bn was dis­bursed last year, im­pact­ing cu­mu­la­tively over 100,000 MSMEs. So far, 3,192 jobs have been cre­ated lead­ing to an in­crease of 10 per cent in the MSMEs’ rev­enue and 6.8 per cent in­crease in value of their land as­sets.

“Also, 52 per cent of loans dis­bursed in 2019 were to youths and women-owned busi­nesses.

This is in our bid to pro­mote eco­nomic em­pow­er­ment and gen­der equal­ity,” he said.

Ok­panachi fur­ther stated that the DBN had set up a credit guar­an­tee sub­sidiary, Im­pact Credit Guar­an­tee Com­pany Lim­ited, with the aim of de-risk­ing the MSME sec­tor by shar­ing risks with the PFIs to en­cour­age them to lend to this crit­i­cal sec­tor of the econ­omy.

He added that the DBN de­liv­ered ca­pac­ity build­ing pro­grammes for the 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.

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