In a proactive move aimed at revitalizing Nigeria’s economy, the KFW Development Bank has injected €25 million into the country’s economic system to foster the growth and advancement of Micro, Small, and Medium Enterprises (MSMEs) alongside bolstering the renewable energy sector. This substantial investment comes through the Development Bank of Nigeria (DBN) Plc.
Speaking from the DBN Office in Lagos, Tony Okpanachi, the Managing Director/CEO of DBN, hailed KFW’s consistent support for Nigeria’s economy across various sectors. He underscored KFW’s keen interest in witnessing the resurgence of MSMEs and the energy sector.
“We’ve just concluded an agreement for a credit line of €25m provided by KFW to DBN for MSME financing. As a wholesale Development Finance Institution (DFI), DBN is geared to provide credit access to MSMEs through wholesale lending to financial institutions and microfinance banks,” Okpanachi explained.
Highlighting DBN’s ongoing focus on green and renewable energy initiatives, Okpanachi mentioned the bank’s collaboration with 65 financial institutions specifically to support small businesses involved in these sectors.
He stressed DBN’s rigorous monitoring and evaluation strategy throughout the lending process. “We monitor the utilization of funds by partnering financial institutions and, more importantly, its impact on their businesses. Our focus extends beyond disbursing funds; we remain actively engaged throughout the process to ensure a tangible impact on both the beneficiaries and the economy,” Okpanachi affirmed.
Regarding credit terms, Okpanachi noted that partner banks would decide bearing the credit risks while assuring a streamlined process for accessing credit. He emphasized the significance of MSMEs in the economic ecosystem and highlighted how this infusion of credit could translate into business expansion, job creation, and GDP growth.
Pierre Annutsch, the Senior Portfolio Manager (Equity Investment/Funds, sub-Sahara Africa and Latin America) for KFW, reiterated the institution’s commitment to providing diversified support to Nigeria’s economy, signifying a positive and collaborative approach towards economic revitalization.
