Okpanachi: DBN Disbursed N631bn to MSMEs in 2022

•Women accessed 67% of credit, youth 27% 

•Earnings totalled N47.6 billion, PBT N29.5 billion, 250,000 jobs created

James Emejo in Abuja

The Managing Director/Chief Executive, Development Bank of Nigeria (DBN) Plc, Dr. Tony Okpanachi, yesterday disclosed that the bank disbursed over N631 billion to over 313,000 MSMEs across the country in 2022.

This was a significant improvement when compared to N482 billion which was lent to over 208,000 MSMEs in the preceding year.

Speaking at the bank’s Annual General Meeting (AGM) in Abuja, he said by deepening impact within five years of operations, the bank had been at the forefront of development, playing a focal and catalytic role in alleviating financing constraints for Nigeria’s underserved MSMEs.

He said the credit disbursements represented 31 per cent growth in financing support and 50 per cent growth in MSMEs impacted.

Of the total MSME beneficiaries of DBN funds over the 5-year period, 67 per cent were women and 27 per cent were young people, with over 250,000 jobs already created.

He said the 2022 financial year-ended with an impressive operational and financial performance, despite challenges within the operating environment.

According to him, within the review period, the bank achieved earnings of N47.6 billion and Profit Before Tax (PBT) of N29.5 billion, as well as cost to income ratio of 15.9 per cent.

Okpanachi said the low cost-to-income result emphasis the impact of the cost-saving measures implemented by the development finance institution during the course of the financial year.

According to him, “2022 was a rewarding year despite the challenges. Our focus will continue to be on our mandate. For us, the 2023 outlook is critical, and we will take every opportunity it presents to deliver more value to our stakeholders.

“Based on many projections for the year 2023, it will most likely constitute more challenging times, with many small businesses taking the hit. However, in all these and against all odds, we remain resolute and optimistic about a brighter tomorrow for DBN and the Nigerian MSMEs.”

However, the DBN boss pointed out that the bank had been recognised globally at different times for its outstanding contribution to the development of the MSME ecosystem in Nigeria, winning the best World Bank project in Nigeria within the five-year period among other laurels including a major financier for women MSMEs by the International Finance Corporation (IFC) in collaboration with the World SME Forum.

Also, in his remarks, Chairman of the bank, Dr. Shehu Yahaya, said it would deepen its commitment to expand funding for Nigerian MSMEs through the Participating Financial Institutions (PFIs) as well as continue to engage with all stakeholders to search for solutions and influence policies aimed at addressing the constraints faced by small businesses especially as they relate to access to finance and building their capacity to upscale sustainably.

Yahaya said, “In the coming year, especially given the context of the general election and the uncertainties engendered by political transition, the bank will intensify its efforts to develop ideas, policies, programmes, and projects to boost growth, help bolster macroeconomic frameworks, reduce financial vulnerabilities, provide support to vulnerable population groups and reduce the long-term impacts of the global shocks of recent years on the MSMEs- all critical to how we can flourish as a nation”.