The newly licensed Development Bank of Nigeria will finance about 20,000 Micro, Small and Medium-scale Enterprises in the first year of its operations.
The Managing Director, DBN, Mr. Tony Okpanachi, stated this on Friday during a media briefing where some members of the management team were unveiled by the Minister of Finance, Mrs. Kemi Adeosun.
He said that the bank would be taking off with a total of $1.3bn, adding that this would be used to provide wholesale long-term funding to small businesses.
Okpanachi state that long-term funds would be provided to microfinance banks for on-lending to the MSMEs, adding that this would enable the sector create jobs and contribute significantly to economic growth.
He said part of the strategies of the bank was to de-risk the sector by making sure that loans were provided at a longer period of 10 years, with a moratorium that would enable the loans to be repaid within 12 years.
Okpanachi added that the loans would be given at a competitive rate and that this would be used to promote the development of the MSME sector.
He said, “The DBN is a new dawn for MSMEs because we will provide small businesses with funds and this will impact on the economy. We will create a sustainable funding model and also ensure financial inclusion through access to funding.
“We are also looking at more female participation and about 20,000 SMEs will be funded in the first year of our operation.”
Adeosun, who also spoke at the briefing, said the operations of the bank would be devoid of political interference.