Banking
DBN Introduces Products for Financing MSMEs
By Aduragbemi Omiyale
Three new products aimed to provide the much-needed access to financing window to micro, small and medium scale enterprises (MSMEs) in Nigeria through participating financial institutions (PFIs) have been introduced by the Development Bank of Nigeria (DBN).
The merchandises launched by the federal government’s development banking institution are the DBN finance to finance (F2F) product, the DBN non-interest banking product and the DBN long-term product.
All these products are meant to cover all aspects of the MSMEs sector irrespective of location, industry or business cycle. They are, however, meant for those MSMEs with less than 250 employees, an asset base of less than N1.125 billion and an annual turnover of less than N950 million.
A statement made available to Business Post disclosed that the maximum loan size disbursable to any of the qualifying MSMEs is N200 million.
The lender explained that the DBN F2F is specially designed for financial institutions (FIs) that lend to MSMEs through the likes of microfinance banks, microfinance institutions, financial NGOs, cooperatives, fintech companies and other non-bank financial institutions.
Through this product, which has a tenor of up to seven years, the DBN makes funds available to FIs who are unable to receive funding directly from DBN to disburse to their MSME customers.
This way, the DBN is able to expand its reach to the MSMEs. The FIs who will qualify for this product would be expected to have active MSME portfolios and demonstrate a commitment to lend the funds to the target MSMEs.
For the DBN non-interest banking product, it was developed for applicable PFIs for on-lending to their MSME customers under the non-interest banking window.
The fund, which is in support of the PFIs’ funding to their MSME customers, is a demonstration of the DBN’s commitment to increasing the availability of its funding to all MSMEs across the country.
The product, which is also aimed at promoting financial inclusion in the country, is available to all non-interest banks as well as other financial institutions who have non-interest banking products and wish to utilize DBN funds to deploy non-interest banking loans to their MSME customers for a tenor of up to five years.
The third product, according to the statement, is a loan product provided to PFIs to support their long-term lending to MSMEs for a period of up to 10 years.
The structure of the fund is flexible and can be easily adapted to suit the PFIs’ peculiar needs and finance structure.
Any PFI can request for this facility to cater for the long-term finance needs of its MSME customers where there are tenor mismatches between available funding and customers funding requirements.
The DBN noted that it expects these products to further address the existing access to finance challenges facing MSMEs in the country, which has been exacerbated by the effects of the coronavirus disease (COVID-19) pandemic.
Prior to the outbreak of the COVID-19 pandemic, the funding gap in the MSMEs sector in Nigeria was a whopping N48 trillion, according to the Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele and this spurred the DBN to look for ways to bridge this gap in line with its strategic mandate.
These products could not have come at a better time when both the global and local economies have been battered by the effects of the COVID-19 pandemic. Nigeria, just like other countries of the world, has had its fair share of the pandemic and its effects, leading the country into a bad economic depression – the worst since the 1980s and the second since 2015.
The lockdown led to the closure of many businesses, mostly the micro, small and medium-scale enterprises (MSMEs), in the country. Those who survived or surviving are struggling to get on their feet once again as they are besieged with challenges of access to finance.
The DBN, which commenced operations in 2017, has between 2018 and 2020, disbursed N323 billion to over 136,000 MSMEs across the six geopolitical zones of the country through the PFIs.
With the creation of these products, the Bank is poised to increase its impact on the operations of the MSMEs in Nigeria.
By Modupe Gbadeyanka
A veteran bank and founder of the defunct Diamond Bank Plc, Mr Pascal Gabriel Dozie, has died at the age of 85.
The former chairman of MTN Nigeria, a leading telecommunications firm, died in the early hours of Tuesday, April 8, 2025, just a day to his 86th birthday.
The Nigerian entrepreneur and businessman chairman of Pan-Atlantic University established Diamond Bank in 1990. The company later became one of Nigeria’s most respected financial institutions.
The current Governor of Abia State, Mr Alex Otti, once headed the lender before handing over to the founder’s son, Mr Uzoma Dozie, when he veered into politics.
Diamond Bank merged with Access Bank in 2019.
Mr Pascal Dozie, who was once the President of the Nigerian Exchange Limited, then known as the Nigerian Stock Exchange (NSE), was born on April 9, 1939, in Egbu, Owerri, Imo State, and began his career as an economist at the National Economic Development Office in the United Kingdom.
By Modupe Gbadeyanka
Some food packs have been distributed to residents of the Federal Capital Territory (FCT) Abuja recently by Fidelity Bank Plc as part of its Corporate Social Responsibility (CSR) initiatives under the Fidelity Food Bank.
This is one of the key pillars of the bank’s CSR strategy, focusing on health and social welfare. As a nationwide project, the initiative seeks to provide food relief to underserved communities across Nigeria, with a particular focus on supporting women and children.
Officials of the financial institutions distributed the food items to seven communities in the Mabushi district of the FCT.
One of the beneficiaries, Mr Mukhtar Mohamed, expressed his gratitude to the bank, acknowledging the significant impact of food distribution.
Similarly, the District Head of Mabushi Community, Mr Hassan Danagna, commended Fidelity Bank for its generosity and its impact on the community.
“Fidelity Bank’s support to our community is unprecedented, and we are deeply grateful for this initiative, which provides relief to vulnerable households and less privileged families.
“Given the current economic challenges, this support is timely, particularly as we approach the holy month of Ramadan,” Mr Danagna stated.
Speaking at the distribution event, the Executive Director for North at Fidelity Bank Plc, Mr Sufiyanu Garba, emphasized the lender’s commitment to community development and its alignment with Sustainable Development Goal 2, which seeks to eradicate hunger.
“This initiative stems from our deep-seated responsibility to support underserved communities and contribute to the fight against hunger in Nigeria.
“At Fidelity Bank, we firmly believe that by addressing the root causes of poverty and hunger, we can make a meaningful impact on the lives of those in need.
“While we may not be able to solve all societal challenges, our contributions are making a difference, as evidenced by the positive feedback we continue to receive,” Mr Garba said.
“We recognize the importance of fostering growth and prosperity within the communities where we operate. By investing in their well-being, we contribute to the creation of a more sustainable and equitable society,” he added.
By Modupe Gbadeyanka
The second edition of Oja Oge by Ecobank Nigeria Limited will attract more than 100 exhibitors, who will showcase their products to potential customers.
The 3-day fashion, beauty, wellness, and lifestyle exhibition will take place at the state-of-the-art Ecobank Pan African Centre (EPAC) in Lagos from April 18 to 20, 2025, at 10 am.
The financial institution is organising the 2024 edition following on the immense success of its first edition last year.
This programme will have exhibitors displaying a wide range of fashion, beauty, wellness, and lifestyle products, as well as entertainment offerings.
Oja Oge by Ecobank provides a dynamic platform for businesses to engage with a diverse audience of shoppers and entrepreneurs.
Already, Ecobank Nigeria has partnered with leading corporates in the telecoms, payments, airline and FMCG space – Airtel Nigeria, Flutterwave, Qatar Airways and Maltina respectively to deliver this second edition of its premier fashion pop up event Oja Oge over the Easter weekend.
“Oja Oge by Ecobank offer premium entertainment and provide a platform for local vendors to showcase and sell their products to a wider audience.
Participants will also have the chance to network and build relationships, gaining access to new markets. For us, as a Pan African bank, supporting small businesses in this way is a core part of our mission,” the Head of SME, Partnerships, and Collaborations at Ecobank, Ms Omoboye Odu, stated.
“Participation is free, and we invite everyone to come along with family and friends to enjoy the fair. It’s not just about buying and selling; it’s an opportunity to experience the creativity and luxury of current fashion and lifestyle trends, alongside a variety of music, food, and entertainment,” she added.
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