Sterling Bank, in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has launched Databanc, a platform aimed at providing a N5 billion single-digit loan program to small businesses. This initiative is designed to enhance data-driven support and interventions for Nigeria’s MSME ecosystem.
Key Features of Databanc:
- 1. Centralized Business Data:
– Databanc will serve as a comprehensive repository for business data in Nigeria, enabling targeted support and policy formulation.
– The platform will facilitate the identification of small businesses and their promoters, categorizing them by business areas and sectors.
- 2. Loan Program:
– The N5 billion single-digit loan program aims to provide affordable financing to small businesses, supporting their growth and expansion.
– Over 20,000 SMEs have already enrolled on the Databanc platform, with more than 80 businesses benefiting from the loan program so far.
Launch Event Highlights:
- Commitment to Economic Growth:
– Tunde Adeola, Executive Director of Commercial and Institutional Banking at Sterling Bank, emphasized the bank’s dedication to bolstering Nigeria’s real sector through strategic partnerships and financial support.
– Adeola stated, “We are delighted to bolster the backbone of our economy with SMEDAN. This initial fund of N5 billion marks just the beginning of our commitment to funding businesses to grow at scale.”
- SMEDAN’s Mission:
– Charles Odii, Director-General of SMEDAN, represented by Levi Anyikwa, highlighted the program’s alignment with SMEDAN’s mission to democratize credit access for nano and micro-enterprises.
– Anyikwa reiterated, “Access to finance remains a significant hurdle for SMEs, and we are committed to removing that barrier.”
- Strategic Focus Areas:
– Bolanle Tyson, Head of SME Digital Products at Sterling Bank, outlined the bank’s strategic focus on critical sectors: Health, Education, Agriculture, Renewable Energy, and Transportation (HEART of Sterling).
– Tyson emphasized the innovative support package, including single-digit interest rate loans, capacity building, marketing support, and infrastructure development.
Benefits for SMEs:
- Enhanced Access to Capital:
– SMEs will benefit from easier access to affordable financing, reducing the financial barriers that often hinder their growth.
- Capacity Building and Support:
– The platform provides essential resources, such as capacity building and marketing support, to help businesses thrive.
- Data-Driven Interventions:
– By leveraging comprehensive business data, the platform enables personalized interventions and support from decision-makers.
The launch of Databanc marks a significant step towards empowering Nigeria’s small businesses, demonstrating Sterling Bank and SMEDAN’s commitment to fostering economic growth and development. The initiative promises to create a more inclusive and supportive environment for SMEs, enabling them to contribute more effectively to Nigeria’s GDP and employment.
