The Nation Newspaper

Tag: DBN

  • Stakeholders laud Fed Govt over DBN

    Stakeholders have praised the Federal Government for licensing the Development Bank of Nigeria (DBN).

    Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) President, Dr. Bassey Edem said the association acknowledged the efforts of the government in finding solutions to other challenges facing Micro Small and Medium Enterprises (MSMEs), adding that the establishment of the will solve many challenges facing MSMEs.

    He said empowering players in the MSME sector was the fastest way a nation could achieve sustainable economic growth and development.

    Edem called on the Federal Government to sustain its empowerment’s plan for the MSMEs to rejuvenate these enterprises as stipulated by the Economic Recovery and Growth Plan (ERGP).

    The NACCIMA boss said MSMEs were the largest employers in the country with the prospect of employing more if supported.

    “Ninety per cent of Private Sector Operators (OPS) are in the MSME sector; they are also players in the cottage industries.

    “They are confronted daily with numerous challenges which include access to fund, multiple taxation, inefficient power supplies and lack of basic knowledge to start and run a good business,’’ he said.

    Lagos Chamber of Commerce and Industry (LCCI) Director-General, Mr Muda Yusuf also commended the Federal Government for licensing the DBN, saying it would have positive impact on the economy.

    He said the DBN would complement other Development Finance Institutions (DFIs), such as Bank of Industry (BoI) and Nigerian Export and Import Bank (NEXIM).

  • Govt okays $1.3b loans for DBN

    The Federal Executive Council (FEC) yesterday approved credit facilities of $1.3 billion to support the Development Bank of Nigeria (DBN).

    The Minister of Finance, Kemi Adeosun made this known at the end of the FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    She said the DBN has got $1.28 billion loans from some development partners, but the approval of the National Assembly is required to access the loans.

    The loans will be used to finance the many Micro-Small and Medium Enterpreneurs (MSME) in the country.

    She said: “The other memo was an approval for credit facilities totaling $1.3 billion to support the DBN. As you know the DBN recently received its licence and is been funded by some long term loans from some of our development partners.

    “So the World Bank had given us $500 million repayable over 21 years and all of this is at concessional rate. The African Development Bank (AfDB) are giving us $450 million and KFW are giving us $200 million and the French Development Agency are giving us $130 million.

    “To access this money, we are ready to disburse but there were two requirements that we need to make and one of them is the legal opinion by the Attorney General of the Federation and the other is the National Assembly’s approval.

    “Before it goes to the National Assembly, it needs to be approved by FEC and the FEC simply approved today so that these loan requests should go to the National Assembly for approval. So we can access this money and the DBN can take off fully as it is expected to transform financing to our MSME sector.

    “The Council enthusiastically approved these facilities which are long tenor meaning that the DBN will be able to lend to our MSMEs over much longer periods and at much lower rates. So the impact on the SMEs will be quite considerable.”

    On the fear that the loans will add to the rising debt profile of the country, she said  focus should be placed on the uses the loans will be put and not on debt profile.

  • FG applies for banking licence for DBN

    FG applies for banking licence for DBN

    After completing the recruitment of the executive management team of the Development Bank of Nigeria (DBN), the Federal Government has formally applied for the bank’s operational license from the Central Bank of Nigeria (CBN).

    A statement from the Federal Ministry of Finance on Thursday said the DBN will have access to $1.3 billion (N396.5 billion) which has been jointly provided by the World Bank, KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency).

    The DBN is also finalising agreements with the European Investment Bank (EIB).

    The ministry said, “The operations of the DBN will not in any way, result in the elimination of the Bank of Industry (BOI), Bank of Agriculture (BOA) or any other existing development bank. The operations of the DBN are clearly distinct from other development banks as it is focused on supporting small businesses defined by size and not by sectors.”

    The DBN, the ministry said will provide loans to all sectors of the economy including, manufacturing, services and other industries not currently served by existing development banks thereby filling an important gap in the provision of finance to Micro, Small and Medium Enterprises (MSMEs).

    As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will lend medium to long-term loans to MSMEs.