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The Development Bank of Nigeria (DBN) on Monday October 30, 2017 officially commenced lending to Participating Financial Institutions (PFIs) for on-lending to Micro, Small and Medium Enterprises (MSMEs).
At the exercise in Abuja, the bank disbursed N5 billion to three micro finance banks, LAPO Microfinance Bank, Fortis Microfinance Bank and NPF Microfinance Bank in varying proportions for on-lending to end users in MSMEs sector.
These PFIs are the first set to have met the criteria to access the loan. About 20,000 MSMEs are expected to benefit from the facility. DBN was conceived to be a robust private-sector led financing for Nigeria’s small businesses.
This is because it is well known that lack of access to finance and the high cost of finance are a major deterrent to the growth and development of Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The license granted DBN is as a wholesale development finance institution with national authorisation.
Photo Caption: Tony Okpanachi Managing Director Of Development Bank of Nigeria
