The Development Bank of Nigeria (DBN) began as a collaborative effort between the Federal Government of Nigeria and global development partners. Together, they launched this initiative to directly confront the persistent financing challenges that Micro, Small, and Medium Scale Enterprises (MSMEs) face across the country. Although MSMEs play a critical role in economic growth, many still struggle to access the funding needed to expand and thrive.
To address these challenges head-on, DBN focuses on removing the financial obstacles that limit the potential of MSMEs and small corporates. We provide targeted financing solutions and partial credit guarantees, which enable financial intermediaries to lend more confidently and effectively. This proactive approach not only supports MSMEs but also ensures that our solutions remain market-based and financially sustainable over time.
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Moreover, Development Bank of Nigeria recognizes that MSMEs serve as the backbone of Nigeria’s economy. They contribute significantly to job creation, innovation, and economic diversification. Yet, many MSMEs face major hurdles when trying to secure credit. High interest rates, rigid collateral demands, and limited financial literacy continue to restrict their growth opportunities.
In response, DBN works directly with financial institutions to improve their ability to serve this important segment. By offering financing and risk-sharing guarantees, we help reduce the perceived risk of lending to MSMEs. As a result, banks and other lenders feel more confident extending credit to these businesses, thereby promoting a more inclusive and accessible financial environment.
One of the most effective tools we use is the partial credit guarantee. This instrument helps lenders mitigate potential losses and encourages them to support a broader spectrum of MSMEs. Consequently, as access to finance improves, so does business activity, job creation, and overall economic momentum.
In addition, DBN places a strong emphasis on long-term impact. We don’t just provide immediate financial support—we work to build a more resilient and inclusive financial ecosystem. Our sustainability-focused model ensures that MSMEs continue to benefit well into the future.
Furthermore, our partnerships with global development institutions allow us to tap into international expertise and innovative practices. Through these collaborations, we strengthen our programs, scale our reach, and ensure that Nigerian MSMEs benefit from the highest standards of financial support and development.
Ultimately, DBN plays a transformative role in reshaping the financial landscape for Nigerian MSMEs. By proactively tackling the root causes of financing gaps, we unlock their full potential and contribute to broader economic growth. Our commitment to sustainable, practical financial solutions empowers MSMEs and supports a more prosperous and inclusive Nigerian economy.
Together, we are building a future where every MSME has the opportunity to succeed.
