ADB commits $450m to DBN for on-lending to MSMEs

The African Development Bank (ADB) has injected $450 million to the Development Bank of Nigeria (DBN) for on-lending to Micro Small and Medium Enterprises (MSME).

Vice President of ADB, Pierre Guislain disclosed this at a media briefing hosted by the DBN in Abuja.

Guislain who visited the management of DBN, rated the take-off by the bank as excellent and said ADB was impressed with the move to ensure development of MSMEs in the country, which would reduce unemployment and grow the economy.

He said, “The start has been excellent, we are looking forward to accelerated processes that require for all of us to make sure we tighten all loose end. We are very happy to see that DBN has started lending and operations.

“We think that it is a critical move here in Nigeria to support micro, small and medium enterprises in effective manner. They would not be lending directly to these companies. They are a kind of wholesale to provider of funds.

“As an institution, we are happy to be partners and are particularly pleased to see progress in recent months. It takes a bit of time to get going but we are off to a very strong start.

Managing Director and Chief Executive Officer, DBN, Mr. Tony Okpanachi, said that the bank commenced lending about three weeks ago the bank, and three financial institutions including LAPO, Fortis and MPF have accessed the loan facility.

“We have reached advanced stages of discussions with several other financial institutions including commercial banks to set them on board.” He said.