According to the Development Bank Of Nigeria (DBN), it has disbursed N100 billion loan to over 95,000 entrepreneurs this year accelerate Micro, Small and Medium Scale Enterprises (MSMEs) growth in the country.
Tony Okpanachi, The Managing Director Development Bank Of Nigeria, disclosed this on Tuesday at the maiden summit of the bank held at the Government House
The summit was themed: “A New Dawn for MSMEs and Business Development in Nigeria,”
It was aimed at enhancing access to credit, financial inclusion and develop entrepreneurial skills of businesses.
“The loans were disbursed to the beneficiaries from January to date, through financial institutions in the 36 states.” Mr Okpanachi said
He further stated that 300 MSMEs received loans worth N200 million under the pilot loan scheme when it commenced lending operation in November 2017.
He also said over 35,000 businesses benefited from a N30 billion facility in 2018.
“I am pleased to report that 72 percent of loans are to women owned businesses.
“In the current year; we have disbursed over N100 billion to over 95,000 MSMEs cutting across various sectors of the economy.
He also added that “70 percent of loans were to women and 51 percent for youth-owned businesses,”
Mr Okpanachi said the bank was in collaboration with National Chambers of Commerce, Industry, Mine and Agriculture (NACCIMA), Small and Medium Enterprise Development Agency (SMEDAN), universities and other financial institutions.
He stated that MSMEs played a crucial role in economic growth, poverty reduction, employment creation, and wealth creation.
Mr Okpanachi said statistics by SMEDAN and National Bureau of Statistics (NBS) showed that 41.5 million MSMEs contributed to 50 percent of the national GDP.
“Accordingly, 90.5 percent of the enterprises do not have access to credit facilities; 83.5 percent lack assistance in power and water supply, and 73.1 percent tax reduction,” he said.
He stated that the lack of access to finance was a major challenge for the MSMEs despite its contributions to sustainable social and economic development.