DBN Disburses N1trn to MSMEs, Unveils 5-Year Growth Plan
The Development Bank of Nigeria (DBN) Plc says it has disbursed more than N1 trillion to over one million Micro, Small and Medium Enterprises (MSMEs), supporting the creation of more than 1.6 million jobs since inception.
Managing Director of DBN, Dr Tony Okpanachi, disclosed this to newsmen on Wednesday in Lagos. Okpanachi said the next phase of the bank’s growth would focus on expanding support for MSMEs through deeper financial inclusion, increased capital mobilisation and targeted interventions for underserved sectors.
He said DBN aims to reach more than two million MSMEs and facilitate the creation of two million direct and indirect jobs over the next five years.
“Our strategic intent over this period is to achieve scale by expanding support for MSMEs and strengthening inclusive economic growth,” he said.
According to him, the bank targets outstanding loans of N1 trillion and plans to issue N500 billion in guarantees under the new strategy.
He added that DBN also seeks to mobilise N1.3 trillion in debt and equity capital to drive its expansion plans.
Okpanachi said the strategy places strong emphasis on inclusion, with 40 per cent of loans earmarked for women-led businesses and 30 per cent for youth-owned enterprises.
He added that 15 per cent of disbursements would be directed to MSMEs in underdeveloped geopolitical zones and focus states.
The managing director said the bank also plans to expand green financing to between N75 billion and N100 billion and train 500,000 MSMEs through its capacity-building programmes.
Reviewing the bank’s cumulative impact, Okpanachi said DBN had onboarded 84 Participating Financial Institutions (PFIs), comprising commercial banks, microfinance banks, merchant banks and development finance institutions.
He said women-owned businesses accounted for 77 per cent of beneficiaries, while 28 per cent were youth-led enterprises.
According to him, the bank disbursed N108 billion to more than 132,000 MSMEs in economically disadvantaged and conflict-affected states, including Borno, Adamawa, Katsina, Yobe and Zamfara.
Okpanachi said DBN disbursed over N358 billion to more than 289,000 beneficiaries in 2025 alone and onboarded five additional PFIs.
Speaking on the performance of DBN’s subsidiary, Impact Credit Guarantee Ltd. (ICGL), he said the company had guaranteed loans exceeding N500 billion since inception.
He said ICGL, established in partnership with the World Bank, had supported more than 93,000 MSMEs and small corporates through over 130,000 credit guarantees.
The subsidiary, he added, had also supported more than 203,000 jobs and extended thousands of guarantees to businesses in underserved communities.
Okpanachi noted that ICGL had secured partnerships with institutions such as the African Development Bank and the European Investment Bank.
On financial sustainability, he projected a cumulative five-year profit before tax of about N300 billion.
“We are balancing developmental impact with strong financial performance to ensure DBN remains a sustainable development finance institution,” he said.
He added that the bank had maintained stable supervisory ratings from the Central Bank of Nigeria and retained top credit ratings from Agusto & Co. and GCR Ratings.
Also speaking, Managing Director of ICGL, Mr Anthony Asonye, underscored the importance of credit guarantees in expanding access to finance for MSMEs.
Asonye described credit guarantees as a critical instrument for mitigating lending risks and encouraging financial institutions to extend credit to underserved businesses.
He noted that the informal sector, which constitutes a significant share of Nigeria’s economy, continued to face limited access to formal financing due to perceived risks by commercial lenders.
According to him, Nigeria has about 41 million registered SMEs, contributing between 45 per cent and 49 per cent of the nation’s Gross Domestic Product (GDP), while receiving less than one per cent of total commercial bank lending.
“SMEs contribute nearly half of our GDP, yet they receive less than one per cent of total banking credit.
“Banks don’t lend to them because they lack the capacity to take loans, collateral remains a major challenge, and perceived risks within the operating environment push interest rates to between 35 per cent and 40 per cent,” he said.
To address the challenge, Asonye said ICGL, in partnership with the World Bank, operates a credit-collateral substitute scheme designed to de-risk lending to MSMEs.
He explained that the scheme provides silent guarantees to commercial banks, covering up to 60 per cent of default risk for standard loans and up to 75 per cent for businesses owned by women and youths.
“Our guarantee is a first-class, cash-backed collateral substitute.
“Commercial banks can now deploy more assets to the SME sector with confidence, knowing there is a reliable backstop. It is a silent guarantee designed to avoid moral hazard while incentivising lending to the real drivers of the economy,” he said.
Central Bank of Nigeria Hikes Interest Rates on Treasury Bills
