After completing the recruitment of the executive management team of the Development Bank of Nigeria (DBN), the Federal Government has formally applied for the bank’s operational license from the Central Bank of Nigeria (CBN).
A statement from the Federal Ministry of Finance on Thursday said the DBN will have access to $1.3 billion (N396.5 billion) which has been jointly provided by the World Bank, KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency).
The DBN is also finalising agreements with the European Investment Bank (EIB).
The ministry said, “The operations of the DBN will not in any way, result in the elimination of the Bank of Industry (BOI), Bank of Agriculture (BOA) or any other existing development bank. The operations of the DBN are clearly distinct from other development banks as it is focused on supporting small businesses defined by size and not by sectors.”
The DBN, the ministry said will provide loans to all sectors of the economy including, manufacturing, services and other industries not currently served by existing development banks thereby filling an important gap in the provision of finance to Micro, Small and Medium Enterprises (MSMEs).
As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will lend medium to long-term loans to MSMEs.