The Development Bank of Nigeria (DBN) has secured shareholder approval to invest $2.5 million in the Youth Entrepreneurship Investment Bank (YEIB), a new institution set to launch in 2026 with a focus on funding youth-led enterprises across Nigeria. The decision was confirmed at DBN’s 8th Annual General Meeting held in Abuja, where its 2024 financial results were also presented.
YEIB is a collaborative effort between DBN, the African Development Bank (AfDB), and the Nigerian Sovereign Investment Authority (NSIA). It is envisioned as a specialized investment platform—not a traditional commercial bank—designed to inject equity financing into businesses owned and operated by young Nigerians. According to DBN’s Managing Director and CEO, the project aligns with the bank’s mission to promote economic growth through youth empowerment and financial inclusion.
The CEO emphasized that YEIB will function purely as an investment vehicle, with NSIA taking the lead in equity contribution and DBN joining as a strategic equity investor. He added that the required legal and structural frameworks are expected to be completed by the end of 2025, allowing operations to begin early the following year. Discussions are ongoing with global development partners who may also join as investors.
DBN’s institutional shareholders include the Federal Government of Nigeria, the World Bank, the European Investment Bank, the French Development Agency (AFD), the German KFW, and the AfDB. While DBN and NSIA are anchoring the equity base for YEIB, AfDB is expected to complement their efforts through debt financing, which will broaden the capital base available to support eligible youth-led ventures.
This move marks DBN’s second major strategic investment after launching its subsidiary, the Impact Credit Guarantee Company Limited (ICGL), which offers partial credit guarantees to stimulate MSME lending. In 2024, DBN converted over N20 billion in debt securities held by ICGL into equity, acquiring an additional 20.49 billion shares at N1 per share.
The approval for YEIB comes amid a strong financial year for DBN. The bank reported over N1.06 trillion in cumulative loan disbursements to Micro, Small, and Medium Enterprises (MSMEs) through Participating Financial Institutions—an increase of 35 percent from 2023. In 2024 alone, DBN disbursed N273.13 billion in loans, up from N155.7 billion in the previous year, marking a 75 percent year-on-year growth.
The number of end-borrowers reached 711,819, a significant rise from 494,819 in 2023. A noteworthy portion of the disbursements, amounting to over N49 billion, went to 69,182 MSMEs in conflict-affected and economically marginalized states such as Borno, Adamawa, Yobe, Katsina, and Zamfara—reinforcing DBN’s role in economic stabilization.
Shareholders also approved a dividend payout of N5.83 billion for the 2024 financial year, translating to N58.35k per share. As DBN progresses toward establishing YEIB, the bank reiterates its commitment to building a more inclusive and resilient economy by empowering Nigerian youth and deepening access to development finance
