ABUJA, March 29 – Nigeria’s central bank has approved a licence for the Development Bank of Nigeria, the finance ministry said on Wednesday.
The DBN was conceived in 2014, but its take-off had been fraught with delays.
The Development Bank of Nigeria (DBN) is a wholesale financial institution which aims to increase access to finance for Micro, Small and Medium Enterprises (MSMEs) through eligible financial intermediaries (“participating financial institutions).
To ensure the sustainability of the DBN and the security of its mandate, international best-practice was used in establishing the Bank, and will also be used in its continued operations, while banks and financial institutions that meet up with a full set of eligibility requirements will be qualified to receive funds from the DBN.
The DBN according to sources will have access to US$1.3bn (N396.5 billion), which will be provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency).
Additionally, the DBN is expected to have agreements with the European Investment Bank (EIB).
The bank aims to support small-scale businesses as the country contends with its first recession in 25 years. It has a commitment from the World Bank for $1.3 billion in seed money.