The newly licensed Development Bank of Nigeria will be financing a total of 20,000 Micro, Small and Medium Enterprises within the first year of its operations.
The Managing Director of the Bank, Mr Tony Okpanachi, stated this on Friday during a media briefing where some of the management team were unveiled by the Minister of Finance, Mrs Kemi Adeosun.
He said that the bank would be taking off it’s operations with a total of $1.3bn, adding that this would be used to provide wholesale long-term funding to small businesses.
He said the long-term fund would be provided to microfinance Banks for on-lending to 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 is to de-risk the sector by making sure that loans are provided at a longer period of ten years with a moratorium that would enable the loan to be repaid within twelve years.
He said the loans would be given at a competitive rate adding that this would be used to promote the development of the sector.
He said, “DBN is a new dawn for MSMEs because we will provide small businesses with funds and this will create the need impact on the economy.
“We will create a sustainable finding 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 spoke at the briefing said the operations of the bank would be devoid of political interference.