10 Takeaways from Development Bank of Nigeria Year to Date Business Presentation

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Friday, January 25, 2019 6.30AM / Ottoabasi Abasiekong  for Proshare WebTV

 

The Development Bank of Nigeria yesterday in Lagos, hosted a year-to-date business presentation on its activities since inception.

 

Established in 2017 the Development Bank of Nigeria is regulated by the Securities and Exchange Commission, and is licensed by the Central Bank of Nigeria.

 

The DBN which is designed to provide access to funding for Micro, Small and Medium Enterprises, MSMEs  has the following as it core  mandate;

  • Provision of loans for MSMEs
  • Capacity Building for MSMEs
  • Providing Guarantees for MSMEs

 

Mr Anthony Okpanachi the Managing Director/Chief Executive of the DBN engaged the business and financial media on the activities, of the development bank and the strategies ahead.

 

From the engagement we bring you 7 takeaways from the interactive session;

 

N31.364bn Spent in 2018 on MSMEs

According to the MD of Development Bank of Nigeria Mr Anthony Okpanachi, about N31.3bn was spent for the provision of loans for MSMEs in Nigeria.

 

This exceeded the initial estimated expenditure plan of N30bn in 2018.


35,000 MSMEs End-Borrowers Benefitted in 2018

The total number of MSMEs that benefitted as end-borrowers from the Development Bank of Nigeria loans were 35,000 cutting across all the geo-political zones in the country.

It exceeded the end of year target of 20,000 MSMEs that the DBN earmarked to receive the disbursements.


Women Accounted for 73% of the End-Borrowers of DBN Loans

Interestingly, women entrepreneurs in Nigeria accounted for 73% of the end-borrowers that benefitted from the N31.364bn .

The women also received 27% of the DBN amounts disbursed.

 

29 Participating Financial Institutions So Far

Since the inception of the Development Bank of Nigeria in 2017it has formallycommenced lending to the first two participating financial institutions(all National Micro Finance Institutions) with national coverage.

The financial institutions are LAPO Microfinance Bank Ltd  and NPF Microfinance Bank Plc.

29 financial institutions have been engaged by the Development Bank, in its quest to attain the position of financing sustainable growth in Nigeria.


N100bn Capitalization

Entertaining questions at the interactive session, Mr Okpanachi said the current capitalization of Development Bank of Nigeria is N100bn.

The fund available for the DBN according to him is currently $1.3bn.


DBN to Spend N70bn on Loan Disbursements  in 2019

On its outlook for 2019 the MD of DBN said the development bank, is looking at an estimated N70bn expenditure for loan disbursements to MSMEs across the country.


This will be an increase of  N39bn  from the N31bn spent in loan disbursements in 2018 .


DBN Loans are Not Sector-Specific

The Development Bank of Nigeria also informed the business and financial media that the loans it disburses are not sector-specific, but covers all sectors of the economy.


Robust Risk Management Policy

The Development Bank of Nigeria considering its role as the nation’s primary development finance institution; promoting growth and sustainability has laid out a robust risk management process namely;.

  • Framework for Lending to Finance Companies and Mortgage Bank
  • Related Party Credit Policy
  • Information Security Policy and Business Continuity Policy (BCP).


Apart from the risk management, the DBN will also institute an effective monitoring and evaluation framework to ensure that the MSMEs receiving loans, are compliant with the process thereby addressing likely issues of non-performing loans.

It concluded its first ever monitoring and evaluation exercise recently which proved insightful for the bank.


Intellectual Contributions

The Development Bank of Nigeria is also exploring how as a development financial institution, it will contribute intellectually on economic issues as it affects MSME development in the country.

It plans to roll out its DBN Journal of Economics and Sustainable Growth and Working paper series.

As part of the takeaways from the interactive session with the media in Lagos, DBN will also look at data provision on MSMEs which should help guide investors.


DBN Solicits Support of More Financial Institutions

The Development Bank of Nigeria has an ambitious plan to support economic growth, economic diversification, job creation and financial inclusion in Nigeria.

This plan will be achieved through an increasing collaboration with financial institutions in the country, which it is soliciting and enjoining all stakeholders to come onboard and support MSME development in the country.

It is also cautious of the pricing model as it concerns interest rate, the wholesale lending approach and the longer tenure loan concept.


Proshare Nigeria Pvt. Ltd.


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Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

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