Nigeria’s Development Bank Embarks on Expansion Plan to Boost MSME

In a bid to further stimulate the growth of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), the Development Bank of Nigeria (DBN) has unveiled an ambitious five-year strategic plan.

At the helm of this initiative is the bank’s Managing Director, Tony Okpanachi, who outlined the institution’s vision to significantly increase its outstanding loan portfolio to over N1.8 trillion.

This bold move is part of the bank’s effort to bridge the financing gap for MSMEs, which are crucial to Nigeria’s economic development and job creation. To achieve this goal, the DBN aims to mobilize N3 trillion in debt and equity, thereby enhancing access to finance for these enterprises.

At the core of the bank’s strategy is a commitment to inclusive growth, with a focus on supporting women-led businesses and economically disadvantaged Nigerians.

The DBN has set a target to allocate 20% of its loans to female-owned enterprises and 40% to businesses owned by individuals from economically disadvantaged backgrounds.

Furthermore, the bank plans to prioritize green financing and provide support to businesses operating in underdeveloped states, aligning its funding priorities with sustainability and regional inclusion objectives.

This strategic approach is expected to create a minimum of two million jobs, both directly and indirectly, over the next five years, building on the 1.2 million jobs enabled by the bank in its first five years of operation.

To drive this growth, the DBN is targeting key sectors such as manufacturing and agriculture, which have the potential to absorb large segments of the workforce. The bank’s Managing Director emphasized the importance of financial sustainability, while also pursuing ambitious job creation targets.

In order to achieve its objectives, the DBN is exploring a mix of local and international funding sources, including a planned bond program, subject to favorable macroeconomic conditions. The bank is currently in discussions with international partners and is leveraging its model as a wholesale development finance institution to multiply its impact across sectors.