By Adedapo Adesanya

The Development Bank of Nigeria (DBN) is expanding its support for Micro, Small, and Medium Enterprises (MSMEs) by growing its outstanding loan portfolio to over N1.8 trillion, according to its Managing Director, Mr Tony Okpanachi.

To ensure this increase in lending, he said that DBN was working to attract N3 trillion in debt and equity, noting that it aligns with the bank’s five-year strategic plan to further drive economic development as job creation across Nigeria.

This joint funding initiative, he said, would empower the bank to provide financial resources to a greater number of MSMEs, a vital sector for economic growth and job creation in the country.

“We want to scale up what we see, what we did the first five years, the next five years, how do we scale up? And that’s a major thing for us.

“We believe that, in Nigeria, there’s still a lot more to be done. So, we are very aspirational in terms of what we need to do,” he said.

The managing director noted that beyond the expansion of its loan portfolio and funding, DBN’s strategic objectives include a strong emphasis on inclusive growth, adding that the bank aims for 20 per cent of its lending to support women-led businesses and 40 per cent to benefit businesses owned by the poor.

Mr Okpanachi explained that DBN was also prioritising the growth of green financing and increasing its focus on supporting enterprises in underdeveloped states. He noted that the plan was to facilitate an additional 800,000 jobs, making a creation of two million over the next five years.

The DBN boss explained, “In terms of job creation, last year, remember, last six years, I told you, we’ve done about 1.2 million.

“We want to do at least two million in terms of job creation. That means both direct and indirect job creation.

“Along the profitability side, of course, we want to be financially sustainable. So we’re not taking our eyes off financial sustainability.”

Emphasising the bank’s role as a wholesale lender, the DBN boss clarified that the new target was not cumulative but represented a fresh drive to catalyse growth across various sectors.

He said that DBN continued to expand its funding sources, by deepening relationships with existing partners and seeking new collaborations to increase both debt and equity.

He highlighted ongoing discussions with various international partners and its plans to tap into local capital markets through a bond programme, with the first phase contingent on favourable macroeconomic conditions.

Given the bank’s role as a long-term lender, Okpanachi said, “Strategically, we have to first expand our sources of funding. Two, dip in with the existing ones. How can we get more? Three, how can we use existing ones to catalyse additional ones?” he noted.

He emphasised a deliberate focus on labour-intensive sectors such as manufacturing and agriculture, noting that they promise significant employment generation.

“This strategic move involves consciously favouring sectors that employ more people over those that are heavily reliant on technology.

“You see, sectors like manufacturing, sectors that are labour-intensive, agriculture, all those areas, they provide more jobs.

“So, we’re consciously looking at what we find in those sectors that are more labour-intensive,” Mr Okpanachi added.

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has reassured depositors in the country that the banking sector remains stable and there is no need to panic.

The banking industry watchdog is reacting to speculations that one of the lenders in the country, Fidelity Bank Plc, may have issues after news report that the Supreme Court has ordered it to pay a company the sum of N225 billion.

Due to the panic generated by the report, the CBN issued a statement signed by its acting Director of Corporate Communications, Mrs Hakama Sidi Ali, allaying fears of depositors.

“The CBN wishes to categorically reassure the public, depositors, and stakeholders that the Nigerian banking sector remains resilient, safe, and sound.

“Like all other regulated institutions, the institution referenced in these reports is held to stringent regulatory requirements, and there is no cause for concern regarding the safety of depositors’ funds.

“The bank affirms that it continues to monitor all financial institutions under its regulatory purview and maintains robust frameworks for early warning signals and risk-based supervision. These mechanisms ensure that any emerging issues are promptly addressed to protect the integrity of the financial system.

“We urge the public to disregard sensational or unverified claims and rely solely on official channels for information about the financial system.

“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system,” the statement said.

By Aduragbemi Omiyale

A $100 million senior loan facility has been secured by Access Bank Plc from a consortium of Development Finance Institutions (DFIs), led by the German DFI DEG and supported by FinDev Canada, Amsterdam-based asset manager ILX, as well as Austrian DFI OeEB, Oesterreichische Entwicklungsbank AG.

The loan is to allow the Nigerian lender to provide funding support to privately-owned MSMEs, small corporates, and family-owned businesses across Nigeria, with a particular focus on promoting female entrepreneurship and economic empowerment.

At least 30 per cent of the facility will be dedicated to gender lens investing in the spirit of the 2X Challenge, ensuring that women-owned and women-managed businesses are prioritised.

This initiative is crucial in Nigeria, Africa’s most populous country, where supporting women entrepreneurs and MSMEs can drive job creation and contribute to reducing inequality.

This facility marks the fourth collaboration between DEG and Access Bank, but it is also the first time in their eight-year partnership that DEG’s has acted as the lead arranger. DEG’s investment in the deal amounts to $25 million, strengthening the long-term relationship between the two institutions.

In 2024, Access Bank made significant social and environmental impact across the continent, touching millions of lives and earning multiple industry accolades.

Through various corporate social investment initiatives in education, entrepreneurship, health, and the environment, the compared reached over 21 million individuals across Africa.

Through its W-Initiative, the financial institution disbursed loans to over a million women-led SMEs, advancing financial inclusion and gender empowerment.

“At Access Bank, we remain steadfast in our commitment to driving economic transformation and fostering inclusive growth across all the countries we operate.

“This partnership not only strengthens our ongoing efforts to empower women in business but also reinforces our support for Nigeria’s MSME sector, which plays a pivotal role in the country’s economic development.

“Through strategic collaborations like this, we continue to enhance opportunities for underserved communities, and we look forward to building on this success to impact even more lives across Africa,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.

On his part, the chief executive of DEG, Mr Roland Siller, said, “This financing marks a major step in our ongoing commitment to supporting inclusive growth in Africa.

“By partnering with Access Bank, we are not just empowering women entrepreneurs and strengthening MSMEs but also investing in the future of Nigeria’s economy.

“This collaboration, which has blossomed over the last eight years, goes beyond just providing funding and speaks to our shared commitment in creating sustainable, long-term opportunities that foster job creation and innovation.

“At DEG, we are focused on helping businesses in developing and emerging markets thrive, offering not just financial support but also advisory services that help them scale and succeed.

“Our work with Access Bank is a clear example of how we can build stronger economies through impactful, sustainable investments.”