The Vice President, Senator Kashim Shettima, has commended the Development Bank of Nigeria Plc (DBN) for its numerous initiatives in catalysing the growth of Nigeria’s micro, small and medium enterprises (MSMEs), describing the bank’s achievements since its establishment in 2014 as “significant and far-reaching.”
In his goodwill message as the Special Guest of Honour at the 5th DBN Annual Lecture, held in Abuja on Wednesday, the Vice President, who was represented by Special Assistant to the President on Economic Affairs, Dr. Tope Fasua, said the impact of DBN in facilitating financing for MSMEs and startup businesses included empowering the sector to grow and thrive, as well as boosting jobs’ creation and poverty reduction in the country.
He said: “DBN’s achievements are significant and far-reaching. The Bank has provided over N787 billion in loans to over 500,000 Micro, Small, and Medium-Scale Enterprises (MSMEs) across Nigeria. This has created jobs, boosted economic activity, and helped to reduce poverty, which aligns with President Bola Ahmed Tinubu’s 8 priority areas of ending poverty, achieving food security, economic growth and job creation, access to capital across all segments of society and the economy, inclusivity, security, fairness and rule of law, and anti-corruption.”
Shettima, while highlighting some of the current administration’s achievements, especially concerning MSMEs empowerment, listed them as including the signing of two Foreign Direct Investment (FDI) deals worth over half a billion dollars; the launch of Compressed Natural Gas (CNG) Initiative; the distribution of one million conversion kits to commercial vehicles, and the creation of Consumer Credit Corporation with over N200 billion.
He added that they also included $620 million under the Digital and Creative Enterprises (IDiCE) programme; the introduction of Skill-Up Artisans Programme (SUPA); the launch of Nigerian Youth Academy (NIYA); the National Youth Talent Export Programme (NATEP); financial support of over N570 billion to the 36 federating states; the construction of 10 MSME hubs resulting in the creation of 240,000 jobs; and payments of N1 billion each to large manufacturers.
Shettima said other achievements were the new National Minimum Wage signed into law by President Tinubu, raising the minimum wage to N70,000 per month; the removal of tariffs and import duties on essential food items and medical supplies; the distribution of fertilizers and initiation of a project to cultivate over 10 million hectares of land; and increased food production and job creation through agricultural incentive.
The Vice President expressed confidence that the deliberations at the 5th DBN Annual Lecture Series would contribute immensely to empowering Nigerian MSMEs in a challenging global landscape.
In his opening remarks, DBN’s Managing Director/CEO, Dr Tony Okpanachi, called for increased support from key institutions in Nigeria, including the government and the financial services sector, to boost the growth of the MSMEs.
He stressed the critical role MSMEs play in Nigeria’s economy, underscoring the need for more concerted efforts in alleviating the financial constraints and other challenges facing MSMEs and small businesses in Nigeria.
According to him, as Nigeria’s primary development finance institution, DBN recognises that the current global economic climate presents a formidable challenge to MSMEs, particularly in Nigeria, where rising production costs, inflation, unstable exchange rates, and disruptions in the global supply chain affect output.
This year’s event, which has as its theme ‘Empowering Nigerian MSMEs in a Challenging Global Landscape’, featured top industry leaders and financial experts to discuss strategies to empower MSMEs in Nigeria.
Okpanachi commended the federal government for its ongoing initiatives to create an enabling environment for MSMEs. However, he reiterated the need for continued collaborative efforts.
He said: “More can still be done. We all must support the government’s efforts by working together creatively and implementing innovative strategies to empower MSMEs and unlock their full potential. By establishing loan guarantee schemes, allocating funds for innovative startups, providing targeted tax breaks, and investing in essential infrastructure, we can create a conducive environment for MSMEs to grow and prosper.
“So, this is a clarion call to all stakeholders to work together to ensure Nigeria’s MSMEs have the support they need to overcome challenges, seize opportunities, and contribute meaningfully to our nation’s economic growth and development. A thriving MSME sector is not just a goal; it is a necessity for a prosperous and sustainable future for all of us”, the CEO added.
As part of DBN’s commitment to the development of MSMEs, Okpanachi highlighted the bank’s ongoing efforts in providing financing and partial credit guarantees to eligible financial intermediaries on a market-conforming and fully financially sustainable basis, further enabling MSMEs to access the capital they need to flourish.
He described the Annual Lecture series as a veritable platform to proffer solutions to myriad challenges constraining the growth of MSMEs in the country, describing the annual event as a testament to its unwavering commitment to fostering sustainable economic growth in Nigeria.
