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“The Development Bank of Nigeria (DBN) is working towards disbursing loans worth N100 billion by the end of 2019”. This statement was made by Tony Okpanachi, the managing director of the bank.
Okpanachi disclosed that the bank had disbursed the sum of N31 billion so far. He mentioned this at the just-concluded spring meetings of the International Monetary Fund and the World Bank Group in Wasington DC.
“The last two years have been exciting for us. We started from scratch and we have been able to do N31 billion in terms of loans in different sectors of the economy. We have reached 5000 end borrowers through the financial institutions we deal with,” Okpanachi said.
Okpanachi added that the bank seeks to increase loans to a whopping N389 billion by the end of 2023.
Okpanachi stated: “Financial sustainability has been our key focus from the first day, with steady profits in the last two years and a robust projection for 2019 and beyond.”
Development Bank of Nigeria
The Development Bank of Nigeria is a wholesale development finance institution which was set up in 2017 to provide credit to micro, small and medium scale enterprises (MSMEs). It aims to achieve this via participating financial institutions, as it can’t give loans directly to interested parties.
Okpanachi mentioned that DBN currently has 29 financial institutions made up of commercial banks on board, and they are all listed on the bank’s website.
The World Bank is one of the supporters of the bank, providing a loan of $500 million.
As regards to the process of getting a loan, Okpanachi said: “The process is simple, go to your bank and ask for a DBN loan. Once you meet the eligibility criteria with your bank, the bank comes to us with your agreement. 80% of the loans we gave out last year were to customers of microfinance banks. They come in large numbers even though they ask for small amounts.”
MSMEs from any sector can get loans with a maximum of 18 months moratorium and 10 years repayment period.
“For micro businesses, the maximum loan amount is N10 million. Howbeit, small and medium businesses can earn up to N150 million. We also have a program for small corporate bodies where they can take up to N600 million.” Okpanachi stated.
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