Development bank to release more funds for MSMEs

Image result for Naira, file photoThe Development Bank of Nigeria has said it will enter into a strategic partnership with Deposit Money Banks and microfinance banks to enable it to release more funds to the Micro, Small and Medium Enterprises sector.

The Managing Director, DBN, Mr. Tony Okpanachi, disclosed this while receiving a delegation of the KFW Development Bank of Germany in Abuja.

He said the DBN’s discussions with some banks in the country had reached an advanced stage and would culminate in signing of deals with them, with a view to expanding the opportunities available to the MSMEs.

The MD said his team undertook a study tour of Germany in order to take advantage of the long experience of the KFW so as to effectively run a sustainable development bank in Nigeria.

“Currently, we are in discussion with many of them (banks). Before the end of the year, we are going to sign on more microfinance institutions and some commercial banks,” he stated.

He said the DBN would continue to collaborate with the KFW, especially in the area of technical support, adding that this would boost the operations of the bank.

“We want the assistance to continue. They have a long history of successful operations and the DBN wants to learn a lot from them. We want continuous assistance from them. We want their willingness to support us as we continue in the journey,” Okpanachi added.

Earlier, the leader of the delegation and the KFW Director for West Africa and Madagascar, Mr. Michael Wehinger, said that his organisation was ready to provide more funding for the DBN.

According to him, the KFW sees the DBN as a natural partner through which Germany and the KFW, in particular can channel efforts towards strengthening the Nigerian SME sub-sector.

He said, “When the Nigerian government took the decision to establish the Development Bank of Nigeria, we saw ourselves as a natural partner to the bank. We put our funds into it and we put our knowledge into the process.

“It was the wish of the KFW and the German government to support the bank, which fosters and promotes the SMEs activities because the Nigerian economy, like others, needs the SMEs to grow.”