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Tag: development bank

  • Development Bank connects innovators at techpreneur summit

    Development Bank connects innovators at techpreneur summit

    The Development Bank of Nigeria (DBN) has further bolstered the growth of Micro, Small and Medium Enterprises (MSMEs) within Nigeria’s innovation ecosystem by facilitating a direct interface between investors-ready tech innovators and potential investors, thereby offering qualified techpreneurs opportunity to secure financing deals during the just-concluded annual flagship tech event, 2024 DBN Techpreneur Summit 3.0, held in Lagos two weeks ago.

    The keynote speaker at the event, Dr. Celestine Iwendi, an international scholar and Head, Centre of Intelligence of Things, University of Bolton, United Kingdom, admonished Nigerian tech innovators to intensify efforts on research and development of more innovation-based solutions that can help in addressing the numerous social and environmental challenges in the country.

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    Speaking at the summit, the Managing Director/CEO, Development Bank of Nigeria, Dr. Tony Okpanachi, disclosed that the interface between the tech innovators and potential investors was made possible through the partnership between DBN and Addium Capital with the setting up of DealRoom – an exclusive session during the summit that offered an opportunity for techpreneurs to meet with potential investors directly.

    He stated further that the reason for integrating DealRoom into the summit was to bridge the gap between capital seekers and investors, thereby catalysing funding opportunities and fostering regenerative growth within the Nigerian tech ecosystem.

  • Development Bank exceeds projections

    The Managing Director, Development Bank of Nigeria (DBN), Mr. Tony Okpanachi yesterday said the bank exceeded its first year projected performance with a total loan disbursement of N31.36 billion to 35,000 Micro, Small and Medium Enterprises (MSMEs).

    Presenting its scorecard in its first year of operations to the media yesterday in Lagos, Okpanachi said DBN formally commenced lending operations in October 2017 to its first two participating financial institutions, (Micro Finance Banks). He said with a strong on-boarding exercise carried out within the year, the bank currently now has a total of 29 Participating Financial Institutions (PFIs) which include commercial banks at various stages of engagement.

    He said: “Our total disbursement-to-date stands at N31.364 billion thus exceeding our year end projection of N30 billion. Total number of end borrowers stands at 35, 000 which also exceeded our year-end target of 20,000 MSMEs.

    “Women accounted for 73 per cent of the end-borrowers of DBN loans and received 27 per cent of the total amounts disbursed.”

    Spurred by the achievements, Okpanachi hinted that the bank’s disbursement target for this year  has increased to N70 billion and is expected to help deepen the bank’s penetration in the MSMEs sector of the economy.

    The DBN chief said the bank has been recommended for various ISO certifications in Information Security- ISO 27001; Business Continuity ISO 22301 and IT Service Management ISO 20000.

     

     

  • Afreximbank, Development Bank sign pact on regional integration

    The African Export-Import Bank (Afreximbank) and the Development Bank of Central African  States  (BDEAC) have entered into a memorandum of understanding (MOU) to harmonise their efforts in the promotion of trade and regional integration.

    Afreximbank President, Benedict Oramah, who spoke during the signing of the MOU at the Bank’s Cairo headquarters on Tuesday, said the two institutions would collaborate in the identification, preparation and financing of projects and trade transactions in African states that are members of both entities.

    Through co-financing, knowledge-sharing and capacity-building work, Afreximbank and BDEAC, he said, will join efforts to intensify industrialisation, expand exports and promote intra-regional trade across countries of the Economic and Monetary Community of Central Africa (CEMAC).

    BDEAC President, Fortunato-Ofa Mbo Nchama, said his institution’s decision to partner Afreximbank was based on the strong alignment that existed between the strategic objectives of the two entities.

    He said the collaboration would contribute to BDEAC’s work in supporting the structural transformation and diversification of Central African economies through the construction of logistics infrastructure and industrial capacities and through the development of agro-processing and other key economic sectors, noting that those economies were still heavily dependent on commodity exports,

    BDEAC is a public regional bank established in 1975 to promote the development and economic integration of CEMAC countries. The members are Cameroon, Republic of Congo, Chad, Central African Republic, Equatorial Guinea and Gabon.

  • Development Bank releases N5b for 20,000 MSMEs

    Development Bank releases N5b for 20,000 MSMEs

    The Development Bank of Nigeria (DBN), has started its lending activities to Micro, Small and Medium Enterprises (MSMEs) valued at over N5billion.

    This initial facility will be available to over 20,000 Micro, Small and Medium Scale Enterprises (MSMEs) through three Microfinance institutions.

    Speaking at the commencement of lending activities in Abuja yesterday, the Managing Director of DBN, Tony Okpanachi, said “the DBN loan repayment tenure is flexible (up to 10 years with a moratorium period of up to 18 months) and the pricing is pragmatic and referenced to market rates.”

    On the applicable interest rates, he said the rates will be “bench marked against the current macroeconomic rates, so as the macroeconomic situation improves and the rates are going down, our rates too will go down unlike when we come out with fix rates irrespective of whatever the macroeconomic situation is.”

    He said the bank’s intervention will come on a systematic basis, it will begin to bring down interest rates, not the kind where you come in and announce an interest rate that is not sustainable. One thing for us is long term sustainability of the businesses.”

    Speaking on his engagement with the MSMEs, Okpanachi said “a lot of the issues they have, arose because the funds are always short term funds, but the funds the DBN will provide will ensure that it will influence the rates to be much more lower than what they are getting now.”

    He said the bank is “going to provide those funding in such a way that will reflect  the macroeconomic environment, such that when macroeconomics go down of course interest rates will go down as well.”

    He said: “In crafting DBN, lessons were learnt from the past experiences of Development Finance Institutions (DFIs) over the last 50 years. The idea behind DBN is to have an institution that will be self sustaining so that eventually, it can go to the market, both local and international to raise funds and continue its business. The issue of subsidy which is not sustainable is not part of the business model.”

    The credit facility to MSMEs he said will be channeled through “three Participating Financial Institutions, all of who are National Micro Finance Institutions with coverage all over the nation: they are: Fortis Microfinance Bank Plc; LAPO Microfinance Bank Ltd and NPF Microfinance Bank Plc.”

    Responding to questions from journalists on the true nature of DBN, Okpanachi stated that “the Nigerian economy is powered by the MSMEs, however unstructured. The activities within this segment account for over 50% of Nigeria’s GDP. However, less than 5% of these businesses have access to credit in the financial system.

    “Statistics show that there are over 37 million MSMEs in Nigeria. However, regardless of the number, many of these businesses still struggle with access to adequate financing.

    “With an increasing educated demography graduating from tertiary educational institutions, coming home to meet limited vacancies in the job market, and a corresponding number in the diaspora returning to Nigeria to create value, solve problems and start businesses, the time for DBN is now. Existing financing options are inadequate to address the demands of the segment.

    “It is against this context that the DBN loan will provide sustainable financing to Nigeria’s burgeoning MSME segment.”

  • CBN licenses Development Bank of Nigeria

    CBN licenses Development Bank of Nigeria

    The Central bank of Nigeria (CBN) has approved a Wholesale Development Finance Institution Licence to the Development Bank of Nigeria (DBN) Plc, the Minister of Finance, Mrs. Kemi Adeosun has confirmed.

    The approval was conveyed in a letter addressed to the Managing Director/Chief Executive of Officer of DBN dated March 28, 2017. The letter was signed by the Deputy Governor of the CBN in charge of Financial System Stability.

    The approval was subject to meeting the minimum capital requirement of N100 billion and the reconstitution of the Board of the Bank and reviewing its organogram.

    The DBN, was conceived in 2014 however, its take-off had been fraught with delays. The President Muhammadu Buhari led administration inherited the project with a determination to resolve all outstanding issues and set a target of 2017 for its take-off.

    It could be recalled that the Minister of Finance said that the DBN will have access to US$1.3bn (N396.5 billion) which has been jointly provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency). The Bank is also finalising agreements with the European Investment Bank (EIB).

    She also stated that the DBN, 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 on-lend medium to long-term loans to MSMEs. The MSMEs contribute about 48.47 per cent to the Gross Domestic Products (GDP) of Nigeria but have access to only about five per cent of lending from Deposit Money Banks (DMBs).

    The Federal Government expects that the influx of additional capital from the DBN will lower borrowing rates and the longer tenure of the loans, will provide the required flexibility in the management of cash flows, giving businesses the opportunity to make capital improvements, and acquire equipment or supplies.

  • Nigeria to launch Development Bank

    • Buhari seeks trade increase with Germany

    A Development Bank of Nigeria is on the cards as part of government’s efforts to strengthen the country’s economic diversification programme.

    President Muhammadu Buhari, speaking during the German-Nigeria Business Forum in Berlin, Germany, at the weekend, said that the bank, when fully operational, will support small and medium enterprises in the country, by improving their access to financing.

    “Our ambitions of creating a diversified and inclusive economy in Nigeria can only be achieved by having a mix of small, medium and large businesses,” Senior Special Assistant on Media and Publicity, Garba Shehu quoted him as saying.

    “This is why we worked with the German development agency, KFW, in designing the Development Bank of Nigeria which will support the small and medium size enterprises both financially and technically to ensure they take their rightful place in the industrialisation value chain.

    “I am pleased to announce that Development Bank of Nigeria will be taking off soon and should be a game changer in our economic diversification plans.’’

    Describing Foreign Direct Investment (FDI) into Nigeria from Germany as modest, Buhari urged prospective investors at the gathering to go beyond the expressions of interest and make binding commitments for trade, investments and industry the key priority sectors of agriculture, infrastructure, solid minerals and digital economy.

    He said Nigeria which recorded a trade volume of $2.96 billion with Germany in 2015, still had a great deal of unexploited potential and room to diversify its exports to Germany and increase overall trade volumes.

    According to the president, trade relations between both countries primarily take the form of oil and gas exports from Nigeria, machinery, vehicles and vehicle parts, telecommunications technology and chemical products in the other direction.

    He said: “Nigeria has remained a country of potential. Now we are in a hurry to develop and realize that potential. Nigeria is not yet where we would like it to be, but I am confident that the government and people of Nigeria are determined to change and be where we would like Nigeria to be: a major economy that is subject to good governance on the basis of the rule of law and constitutional order and a responsible member of the international community.’’

    On corruption, he said: “we have boldly set out to bring an end to a culture of impunity and abuse of public trust. Corruption is the reason why we went through years of an oil boom and came out with very little to show in terms of savings or investments.

    “Corruption is the reason our military struggled for so long against Boko Haram. Corruption is one of the reasons that in spite of our rich human and natural resources as a country, seventy percent of our population continues to live in poverty.

    “Now we have said enough is enough. It is time to make public funds work for the public good. And that is why we are bringing culprits to book and recovering looted funds and assets.”

  • Jonathan inaugurates Development Bank of Nigeria

    Jonathan inaugurates Development Bank of Nigeria

    President Goodluck Jonathan, on Monday in Abuja inaugurated the Development Bank of Nigeria (DBN) in furtherance of his administration’s desire to revolutionise small businesses in the country.

    Speaking at the event, Jonathan expressed optimism that the bank would eliminate all obstacles hindering the growth of Micro, Small and Medium Enterprises and their ability to generate the much needed jobs for the country.

    According to him, the DBN, which is a private sector driven financial institution, is meant alleviate the financial constraints being experienced by operators of small businesses for rapid and sustainable national development.

    “This launch of a brand new financial institution, the Development Bank of Nigeria (DBN), represents a defining milestone in our administration’s efforts to empower more micro, small and medium enterprises across our land‎.

    “MSMEs form the backbone of the Nigerian economy; the men and women who own and operate them are true reflections of the strong Nigerian spirit of enterprise and the vigorous work and ethics that define us as a nation and a people.

    “Our recent GDP re-basing exercise confirmed the importance of MSMEs sector to our national economy.

    “Currently Nigeria has over 17 million of these businesses, which contribute over 45 percent of our GDP and employ about 66 per cent of our labour force.

    “Today we celebrate these great men and women, who keep our communities ticking with the impact of their hard work and practical ingenuity. “

    Jonathan acknowledged the support of the nation’s development partners such as the African Development Bank (ADB); the World Bank; Agence Francaise de Development (afd), and KFW Entwicklungs Bank of Germany, saying that DBN would be a success story for Africa

    He said the government would ensure financial discipline and the adoption of international best practices in the operation of the bank.

    “We are pleased that the DBN will not go the way of similar established institutions because of the participation we are getting not just about government putting money, but  money from the private sector and especially from our development partners.

    “We know that the ADB is a success story but our DBN will be a major success story for Africa,“ he said.

    He said that the bank would operate as a self-sufficient institution that would not rely on government subsidy, but source for funds to run its operations and also leverage on the existing structure of the financial sector.

    He said: “Now is the time for us to achieve a rounded economic growth that will impact the lives of Nigerians.

    “The MSMEs sector will be properly and strategically stimulated in a manner that is sustainable.”

    According to the President, the challenges faced by the sector should be addressed in order to harness the benefits of development in terms of growth both in GDP and employment as well as leading the way for industries of the future.

    He expressed the hope that DBN would stimulate “strong growth“ in agriculture, manufacturing and among the micro, small and medium enterprises.

    The President also expressed happiness that YouWin winners would look up to DBN to sustain the programme in terms of expansion.

    The Minister of Finance, Dr Ngozi Okonjo-Iweala, said the bank would boost socio-economic activities across the country as it would guarantee long tenure funding for the Small, Medium Enterprises (SMEs),

    Okonjo-Iweala said that such businesses would have a grace period of five years before they would begin to repay the facilities.

    ‎The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, said one of the objectives of DBN was to lend to specialised institutions such as the Bank of Industry, Bank of Agriculture and commercial banks for onward lending to SMEs.

    According to him, the system will support medium to long-term lending, loans with duration of up to 10 years, and moratorium period of up to 18 months to give MSMEs adequate grace period before they would start to repay.

    He said it would also allow them to match loan terms with longer term investment cycles.

    He said DBN had been registered as a publicly sponsored private institution.

    “Shareholders are Federal Government and African Development Bank. Other institutions and social enterprises have expressed interest to participate in equity and these will be considered and brought in due course.

    “DBN will be adequately capitalised, it will commence operations with a start-up capital of $1.5 billion (or N300 billion), and we expect the capital to increase to $5 billion (or N1 trillion) in the medium term and ultimately to N2 trillion within 10 years. “

    According to Emefiele, in its first five years of operation, DBN is expected to disburse more than 200,000 new loans to MSMEs, with each SME creating an average of five new jobs.

    “We expect that DBN will result in one million direct jobs being created as well as several more indirect jobs.

    “In the same time period, the DBN alongside its partners will also provide hands-on business training for over one million MSMEs, making them more bankable and thus more attractive for commercial bank lending.

    “We expect that the contribution of MSMEs to Nigeria’s GDP will increase from the current 45 per cent given MSMEs increased access to finance, access to quality financial education and access to markets,’’ he added.

    The Minister of Trade, Industry and Investment, Dr Olusegun Aganga, disclosed that DBN would impact the lives of Nigerians.