The Development Bank of Nigeria (DBN) Plc has disbursed over N1 trillion to more than one million Micro, Small, and Medium Enterprises (MSMEs), supporting the creation of over 1.6 million jobs since its inception.
Managing Director of DBN, Dr. Tony Okpanachi, disclosed this to newsmen on Wednesday in Lagos.
Okpanachi stated that the next phase of the bank’s growth would focus on expanding support for MSMEs through deeper financial inclusion, increased capital mobilization, and targeted interventions for underserved sectors.
He said DBN aims to reach more than two million MSMEs and facilitate the creation of two million direct and indirect jobs over the next five years.
“Our strategic goal is to scale by expanding MSME support and fostering inclusive economic growth,” he said.
He added that the bank targets N1 trillion in outstanding loans and plans to issue N500 billion in guarantees under its new strategy. Additionally, DBN seeks to mobilize N1.3 trillion in debt and equity capital to fund its expansion.
Okpanachi emphasized that the strategy prioritizes inclusion, with 40 percent of loans allocated to women-led businesses and 30 percent to youth-owned enterprises. He also revealed that 15 percent of disbursements would go to MSMEs in underdeveloped geopolitical zones and focus states.
The bank also plans to expand green financing to between N75 billion and N100 billion and aims to train 500,000 MSMEs through capacity-building programs.
Reviewing DBN’s impact, Okpanachi said the bank has onboarded 84 Participating Financial Institutions (PFIs), including commercial banks, microfinance banks, merchant banks, and development finance institutions. Women-owned businesses account for 77 percent of beneficiaries, while 28 percent are youth-led enterprises.
He noted that the bank disbursed N108 billion to over 132,000 MSMEs in economically disadvantaged and conflict-affected states such as Borno, Adamawa, Katsina, Yobe, and Zamfara. In 2025 alone, DBN disbursed over N358 billion to more than 289,000 beneficiaries and onboarded five additional PFIs.
Speaking about the performance of DBN’s subsidiary, Impact Credit Guarantee Ltd. (ICGL), he said it has guaranteed loans exceeding N500 billion since inception, supporting over 93,000 MSMEs and small corporates with more than 130,000 credit guarantees. The subsidiary has also supported over 203,000 jobs and partnered with institutions like the African Development Bank and the European Investment Bank.
On financial sustainability, Okpanachi projected a five-year cumulative profit before tax of approximately N300 billion, balancing developmental impact with strong financial performance to ensure DBN’s sustainability. The bank has maintained stable supervisory ratings from the Central Bank of Nigeria and top credit ratings from Agusto & Co. and GCR Ratings.
Also speaking, ICGL Managing Director Mr. Anthony Asonye highlighted the importance of credit guarantees in expanding MSME access to finance. He described guarantees as vital tools for mitigating lending risks and encouraging banks to lend to underserved businesses.
He noted that Nigeria has about 41 million registered SMEs, contributing 45 to 49 percent of GDP, yet receiving less than one percent of total bank lending. He explained that many SMEs lack the capacity to borrow, face collateral challenges, and operate in risky environments, leading to high interest rates of 35 to 40 percent.
To address this, Asonye said ICGL, in partnership with the World Bank, offers a credit-collateral substitute scheme that provides silent guarantees covering up to 60 percent of default risk for standard loans, and up to 75 percent for women and youth-owned businesses.
“Our guarantee is a cash-backed collateral alternative. Banks can now lend more confidently to MSMEs, knowing there is a reliable backstop. It’s a silent guarantee designed to promote responsible lending and support Nigeria’s key economic drivers,” he stated.
