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DBN Disbursed N324bn MSME Loans in 4years

The Development Bank of Nigeria DBN has disbursed N324bn in loans to about 136,000 Micro, Small and Medium Enterprises, the Federal Government has said.

It said the loans were disbursed by the bank within a period of four years, adding that beneficiaries got the funds through 40 participating financial institutions.

It disclosed this in a document obtained from the Federal Ministry of Finance, Budget and National Planning on social investment and poverty alleviation by the Federal Government, as well as the performance of some key agencies.

“As at the end of 2020, Development Bank of Nigeria (which commenced operations in 2017) had disbursed N324bn in loans to more than 136,000 MSMEs” the government stated.

It added, “This (disbursements) was through 40 participating financial institutions; 57 per cent of the

beneficiaries are women-owned MSMEs, while 27 per cent are youth-owned.”

The bank also confirmed the figures released by the finance ministry, as other documents obtained by our correspondent from DBN showed that it recorded 34,147 end borrowers during the review period.

It disbursed N283m to MSMEs start-ups, with a women count of 25,172, while over N9bn was given to business owners who accessed credit from the bank for the first time.

The bank stated that its first time access to credit count was 6,935, while its youth count was 9,066.

DBN disburses N100bn to 95,000 MSMEs
The bank explained that it was partnering shareholders in its activities, with a key role being played by the Federal Ministry of Finance, Budget and National Planning.

It said DBN had partnerships with leading multilateral institutions and strategic alliances with development partners such as the African Development Bank, the World Bank and Agence française de développement.

Meanwhile, in the fiscal, trade, monetary and investment reforms section in the document from the finance ministry, the government stated that it carried out negotiations of billions of dollars in arrears of cash calls inherited when the current administration assumed office.

It said the negotiations resulted in an agreement for a significant discount of about $1.7bn.

It stated that since 2017 the Nigerian National Petroleum Corporation had commenced payment of the arrears to the oil companies, adding that as of the fourth quarter of 2020, more than $3bn of the about $5bn arrears had been cleared.
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