The Chief Executive Officer of the Development Bank of Nigeria Plc (DBN), Tony Okpanachi, on Tuesday disclosed that the development finance institution disbursed N400 billion to Small and Medium Enterprises (SMEs) in the country over the last four years.
Okpanachi, who gave this hint during the virtual second Annual Lecture Series of the bank with the theme ‘Resilient Innovation: MSMEs’ adaptability in Uncertain Times’, maintained that DBN had fulfilled its mandate in its continued commitment to provide funds for SMEs and other areas of financial supports for other enterprises nationwide.
He explained: “As a bank, we have championed this cause through all our three mandates of providing long term financing, capacity building and partial credit guarantees over the years.
“Since commencing operations in 2017, we have disbursed over N400bn in loans to over 150,000 Nigerian SMEs out of which 27 per cent are women owned and 26 per cent new owned businesses respectively. This has led to the creation of over 130,000 jobs.
“In the year 2020 alone, the sum of N190bn was disbursed through 19 PFIs out of which N9.8bn was to 6,935 first time borrowers, N5.7bn to 9,066 youths, N11.8bn to 25,171 women owned businesses.
“Cumulatively, 83 per cent reported an increase in their sales after obtaining the loan, while 48 per cent were able to increase their staff strength after receiving the facility.
“Additionally, 125 MSMEs were also trained as part of our capacity building initiative through the DBN Entrepreneurship Training Programme which was held in Abuja and Lagos”, the development finance expert added.
Okpanachi explained that the rationale behind the bank’s support for SMEs was based on the logical reasoning that “big things have small beginnings.”
According to him, it is at times like this that the bank’s mandate as captured in its vision is to facilitate sustainable socio-economic development through the provision of finance to Nigerians on sound SMEs through eligible financial intermediaries.”
Commenting during the session, Chairman of the bank’s Board, Alhaji Shehu Yahaya, said the bank had during the years focused on avenues to make the SMEs grow and contribute more to the nation’s GDP.
Yahaya spoke on the DBN’s five years strategic plan, listing its thrusts as including, expanding its reach, advocating for MSMEs and expanding its capacity, among others, adding that implementation of the plan has become more crucial in the face of difficulties being faced by MSMEs in the country.
In his remarks during the virtual meeting, President & Chairman, Board of Directors, African Export–Import Bank (Afrexim Bank), Prof. Benedict Oramah, who was represented by the bank’s Executive Vice President, Finance, Administration and Banking Services, Denys Denya, said SMEs were devastatingly impacted by the COVID-19 pandemic and called for huge concentration of funds on them for recovery.
According to him, 62 percent of women-led small businesses have been negatively impacted by the pandemic, compared to between 27 percent and 30 percent of SMEs owned by men that were impacted.
The Afrexim Bank boss lamented that African SMEs were suffering digital gap which caused serious hitches in the continent’s supply chain during the lockdown and called on improved investments in basic technologies to support the enterprises.
