The Development Bank of Nigeria (DBN) says it has disbursed over N100bn to 95,000 MSMEs across the country.
"In the current year (2019), DBN has disbursed over N100bn to over 95,000 MSMEs cutting across various sectors of the economy. Seventy percent of these loans went to women-owned/managed businesses while 51 percent so far were disbursed to youth owned businesses," DBN announced in a statement.
It also said the bank is deploying new strategies to boost the growing network of MSMEs that it is financing across the country and extend its reach to underserved areas, especially in the North and East.
At the first DBN MSME Summit held last week in Maiduguri, Borno State, the managing director, Mr Tony Okpanachi said, "a major challenge faced by the MSMEs is their inability to structure and put together a bankable business plan which makes banks view them as high risk and therefore unwilling to finance them."
To fix the problem and make MSMEs attractive to DBN's participating financial institutions (PFIs), Okpanachi said DBN's Chief Operating Officer will ensure capacity building plan for MSMEs in the state.
DBN commenced lending operations in November 2017 with two microfinance banks namely, LAPO and NPF with a pilot loan amount of N200 million to 300 MSMEs.
In 2018, the bank's first full year of operation, it increased disbursements to roughly N30 billion and reached 35,000 MSMEs in the country.