DBN Targets N1.8 Trillion Loan Portfolio to Boost MSMEs in Nigeria

Beulah Godfrey

May 19, 2025
3 min read

The Development Bank of Nigeria (DBN) has announced plans to grow its outstanding loan portfolio to over N1.8 trillion. This move is part of its new five-year strategic plan to boost support for Micro, Small, and Medium Enterprises (MSMEs) across the country.

DBN’s Managing Director, Tony Okpanachi, shared this update during a recent media briefing in Lagos. He said the bank also plans to raise N3 trillion in debt and equity to improve access to finance for MSMEs—a key driver of Nigeria’s economy and job creation.

“We want to build on the progress we’ve made in the last five years,” Okpanachi said. “There’s still a lot of work to do, and we are setting high goals.”

Inclusive Growth at the Heart of the DBN Strategy

Okpanachi explained that DBN’s new strategy focuses on inclusive growth, not just increasing loans. He said the bank plans to dedicate 20% of its loans to women-led businesses and 40% to businesses owned by low-income Nigerians.

In addition, the bank wants to increase green financing and support MSMEs in underdeveloped states. These efforts align with DBN’s push for environmental sustainability and regional development.

Over the next five years, DBN aims to create at least two million jobs through direct and indirect means. According to Okpanachi, the bank has already helped generate 1.2 million jobs since it began operations.

He said, “We want to create at least two million jobs by supporting sectors like agriculture and manufacturing. These sectors can employ a lot of people.”

Growing Through Local and International Partnerships

To meet these ambitious targets, DBN plans to grow its funding base using both local and global partners. The bank is currently in talks with international development partners and is also exploring Nigeria’s capital market.

Okpanachi revealed that DBN is working on a bond issuance, depending on market conditions. As a wholesale finance institution, DBN does not lend directly to MSMEs. Instead, it works with commercial banks and other financial institutions to reach businesses across various sectors.

He added, “We are focusing on three main areas—raising more funds, strengthening our partnerships, and using our current resources to attract new ones.”

Recently, DBN announced it had disbursed over N1 trillion to MSMEs through 79 financial institutions across Nigeria. The bank also noted that its funding reached over 69,000 MSMEs in underdeveloped states like Borno, Yobe, Katsina, Zamfara, and Adamawa.

In addition, 74% of the beneficiaries were women, and 25% were young people. DBN also said it had trained more than 9,500 small business owners in different parts of the country. With its new five-year plan, DBN is positioning itself as a major player in Nigeria’s effort to grow small businesses, create jobs, and drive sustainable development.