The Development Bank of Nigeria (DBN) is poised to make a significant economic impact with its plan to disburse a substantial sum of N150 billion to Micro, Small, and Medium Enterprises (MSMEs) across the nation. This initiative, led by DBN’s Chief Economist, Prof. Joseph Nnanna, is strategically designed to provide much-needed financial support to MSMEs through participating financial institutions.
The primary objective of this disbursement is to invigorate growth in various sectors of the economy. With a target to engage approximately 120,000 MSMEs in 2023, DBN aims to alleviate the economic challenges faced by businesses and entrepreneurs in Nigeria.
According to Prof. Nnanna, the focus of the DBN is not on introducing new taxes or imposing higher tax rates, but rather on streamlining the existing tax structure. The goal is to reduce the number of taxes and levies while harmonizing revenue collection, thus easing the burden on both individuals and businesses.
He emphasized that the economic landscape is experiencing fluctuations, and many businesses are grappling with challenges such as rising interest rates. In response, DBN aims to create an enabling environment that allows business owners room to breathe and grow.
The impact of DBN’s efforts in the MSME sector has been notable, particularly in terms of job creation. Over 300,000 MSMEs across various industries, including trade, education, manufacturing, agriculture, and ICT, have been positively influenced by DBN’s initiatives. This has resulted in the creation of more than 240,000 jobs, a commendable milestone.
Furthermore, Prof. Nnanna urged participating financial institutions to play a pivotal role in supporting MSMEs, especially in light of the prevailing economic challenges. He acknowledged that the agriculture sector, a vital component of the economy, is facing uncertainties due to potential flooding risks. As such, he emphasized the urgency for development financial institutions to step in and provide the necessary support.
In conclusion, DBN’s commitment to empowering MSMEs in Nigeria is a crucial driver of economic growth. By streamlining tax policies and providing targeted financial support, DBN aims to create an environment where businesses can flourish, ultimately leading to a more prosperous and inclusive economy for all Nigerians. Collaboration among stakeholders, including regulators, financial institutions, and partner organizations, will be instrumental in achieving these goals.
