Monday, April 22, 2024

DBN Disburses N631bn to Farmers and other MSMEs

In order to scale up the capacity of micro, small, and medium-scale enterprises (MSMEs) in Nigeria, the Development Bank of Nigeria (DBN) has disbursed over N631 billion to over 313,000 micro, small, and medium-scale enterprises (MSMEs) as of December 2022.

In order to scale up the capacity of micro, small, and medium-scale enterprises (MSMEs) in Nigeria, the Development Bank of Nigeria (DBN) has disbursed over N631 billion to over 313,000 micro, small, and medium-scale enterprises (MSMEs) as of December 2022.

The Managing Director of the bank, Dr. Tony Okpanachi, while speaking in Abuja during the yearly general meeting of the DBN, expressed that the bank plays an important role in scaling up capacity building for MSMEs by exploring various avenues to eliminate barriers to accessing funding.

DBN was established by the Federal Government of Nigeria (FGN) in collaboration with global development partners to address the major financing challenges facing MSMEs through the provision of financing and partial credit guarantees to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.

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According to Okpanachi, the bank has disbursed over N631 billion to over 313,000 micro, small, and medium-scale enterprises (MSMEs) as of December 2022, adding that the value is a modest increase from N482 billion disbursed in 2021, showing a 31 percent growth in financing support and a 50 percent growth in MSMEs impacted.

He explained that the bank gives priority to women and youth, stating that out of the total beneficiaries of DBN funds in five years, 67 percent were women and 27 percent were young people, with more than 250,000 jobs already created.

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The DBN boss disclosed that the performance of the bank in 2022 showed earnings of N47.6 billion and profit before tax of N29.5 billion, with a cost-to-income ratio of 15.9 percent.

He declared that the bank had increased its average tenor of MSME loans from 18 months to 36 months due to the impact of the long-term facility and that utilization of the long-term product would be N150 billion by the end of 2022.

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