De­vel­op­ment Bank of Nige­ria Joins SME Fi­nance Fo­rum

Business a.m. - - COMPANY - Ades­ola Afo­labi

THE DE­VELOP MENT BANK OF NIGE­RIA (DBN) has be­come a mem­ber of the SME Fi­nance Fo­rum, a global mem­ber­ship net­work that brings to­gether fi­nan­cial in­sti­tu­tions, tech­nol­ogy com­pa­nies, and de­vel­op­ment fi­nance in­sti­tu­tions to share knowl­edge, spur in­no­va­tion, and pro­mote the growth of SMEs.

Es­tab­lished by the G20 Global Part­ner­ship for Fi­nan­cial In­clu­sion (GPFI) in 2012, the SME Fi­nance Fo­rum was set up as a knowl­edge cen­ter for data, re­search and best prac­tice in pro­mot­ing SME fi­nance. As an im­ple­ment­ing part­ner for the GPFI, the In­ter­na­tional Fi­nance Cor­po­ra­tion (IFC) was tasked with man­ag­ing the ini­tia­tive.

Ac­cept­ing DBN into the fo­rum, Matthew Gamser, CEO, SME Fi­nance Fo­rum, said, “We are proud to have the De­vel­op­ment Bank of Nige­ria join our net­work of 140 mem­bers who work to ex­pand ac­cess to fi­nance for small and medium busi­nesses. It has been dis­cov­ered that 200 mil­lion busi­nesses world­wide need fi­nanc­ing to in­vest, grow and cre­ate new jobs.”

“Founded in 2014, DBN fo­cuses on al­le­vi­at­ing fi­nanc­ing con­straints faced by MSMEs and small cor­po­ra­tions in Nige­ria through the pro­vi­sion of fi­nanc­ing and par­tial credit guar­an­tees to el­i­gi­ble fi­nan­cial in­ter­me­di­aries, on a mar­ket-con­form­ing and fully fi­nan­cially sus­tain­able ba­sis.

The bank sup­ports in­clu­sive growth and pro­vides whole­sale fund­ing to fill iden­ti­fied en­ter­prise fi­nanc­ing gaps in the MSME sec­tor. In 2017, the bank dis­bursed a to­tal of N5bn to mi­cro­fi­nance in­sti­tu­tions for on-lend­ing to over 20,000 MSMEs across the coun­try”, Gamser noted.

Ex­press­ing de­light on the an­nounce­ment of DBN’s re­cep­tion into the fo­rum, the Tony Ok­panachi, MD/CEO, De­vel­op­ment Bank of Nige­ria, said, “We are ex­cited to ex­pand our knowl­edge of SME fi­nanc­ing and be­lieve par­tic­i­pa­tion in the SME Fi­nance Fo­rum mem­ber work­ing groups will af­ford us with a plethora of net­work­ing and devel­op­men­tal op­por­tu­ni­ties.”

The Fed­eral Govern­ment of Nige­ria (FGN) in col­lab­o­ra­tion with global de­vel­op­ment part­ners es­tab­lished the DBN to ad­dress the ma­jor fi­nanc­ing chal­lenges fac­ing mi­cro, small and medium scale en­ter­prises (MSMEs) in Nige­ria.

The bank is a whole­sale de­vel­op­ment fi­nance in­sti­tu­tion (DFI) pro­vid­ing sus­tain­able fi­nanc­ing through el­i­gi­ble Par­tic­i­pat­ing Fi­nan­cial In­sti­tu­tions (PFIs), who in turn, lend to end-bor­row­ers mi­cro, small and medium en­ter­prises (MSMEs) for the de­vel­op­ment of that seg­ment.

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