By Dipo Olowookere
About 10,000 Micro, Small and Medium Scale Enterprises (MSMEs) have been targeted by the Development Bank of Nigeria (DBN) and LAPO Microfinance Bank Limited for funding support to alleviate the financial constraints they face.
This information was disclosed in a statement issued by DBN, Nigeria’s first wholesale development finance institution.
The development bank, which commenced operations last year, was conceived by the federal government in collaboration with World Bank, African Development Bank (AfDB), European Investment Bank (EIB), German Development Bank (KfW), and the French Agency for Development (AFD), to address financing challenges facing MSMEs in Nigeria.
“This is a milestone achievement and I am particularly happy that we are getting a lot of traction on our lending activities with LAPO.
“The collaboration is encouraging because they were among the first three microfinance banks we commenced our initial pilot lending with in November 2017,” DBN said in the statement it released last week.
Managing Director of LAPO Microfinance Bank, Mr Godwin Ehigiamusoe, while commenting on the funding package, stated that, “We strongly believe in the capacity and potentials of the MSMEs in alleviating poverty and creating jobs for our growing population.”
He said further that, “We are happy with the partnership and we will continue to work with DBN to ensure that collectively, we are able provide the much-needed funding that the MSMEs require to flourish.”
“According to the IFC MSME Finance Gap Report in 2017, there are over 37 million MSMEs contributing to over 50 per cent of Nigeria’s gross domestic product (GDP). However, less than five per cent of these businesses have access to credit in the financial system.
“DBN’s entrance and its interventions are therefore, relevant and timely.
“They will reverse this trend by making it easier for MSMEs to access financing to build and expand their businesses and unleash the power of the MSME business segment to drive national economic development,” he said.
LAPO Microfinance Bank is a pro-poor financial institution committed to the social and economic empowerment of low-income households through provision of access to responsive financial services on a sustainable basis.
