AfDB expresses confidence in success of DBN micro-finance projects
Commends disbursement of N5bn to MSMEs
African Development Bank (AfDB), has expressed confidence in the success so far achieved by the Development Bank of Nigeria (DBN), through the disbursement N5billion to over 20,000 Micro, Small and Medium Enterprises (MESMEs) in barely six months of its take-off.
Commending the disbursement of the fund, it also promised to continue to support the growth of the bank for future success in making funds more available to the MSMEs.
The AfDB Vice-Chairman, Pierre Guislain, gave the assurance, Wednesday, when he led a delegation of the bank on a courtesy visit to the management of DBN in Abuja.
A few months ago, the NDB gave loans worth N5billion to over 20,000 MSMEs in commencement of its first mandate to make available cheap funding windows to build the sector.
The loans were disbursed through three selected participating financial institutions of Fortis Micro finance bank, LAPO Micro-finance Bank, and NPF Micro-finance Bank.
Guislain said: “We are still going to support the MSMEs through local institutions across Africa, DBN is a new institution we want to see succeed. We have seen now that barely few months after take-off, the disbursement of N5billion to the sector is already yielding positive results, I mean I can say without any contradiction is in order.”
Earlier, the DBN Chairman, Dr. Shehu Yahaya, said it was the Federal Government in collaboration with international development finance institutions such as the AfDB Group that established the DBN, to provide sustainable financing through eligible participating financial Institutions (PFIs) for on-lending to Micro, Small and medium Enterprises (MSMEs) for their development.
Yahaya noted that the bank, with a flexible loan repayment tenure of up to 10 years, and long term moratorium period up to 18 months, and pragmatic pricing which is referenced to market rates, DBN’s lending model will also address the lapses that affect existing financing models.
He noted that the bank has commenced the engagement of commercial banks, while eligibility questionnaires have been sent to all commercial banks, out of which 12 have responded, and expressed interest in assessing the DBN loan.
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