In a significant move to foster inclusion and drive the growth of Micro, Small and Medium Enterprises (MSMEs) in the Northern region, the Development Bank of Nigeria (DBN) has unveiled a non-interest loan framework. The DBN, a wholesale finance institution, aims to alleviate financing constraints faced by MSMEs in Nigeria, thereby stimulating economic development.
DBN’s Managing Director, Dr. Tony Okpanachi, announced the introduction of this interest-free loan window during a stakeholders conference organized by the SDF Kano Concerned Citizens in partnership with the bank. This innovative loan structure is accessible through Jaiz Bank PLC and TAJ Bank Ltd, aligning with DBN’s commitment to empower and bolster MSMEs in the North.
The Managing Director emphasized the critical role of empowering and capacitating MSMEs to overcome the challenges that have hindered their growth in Kano, Jigawa, and the broader Northern Nigeria. Speaking about the importance of the region, Dr. Okpanachi noted, “For a commercial center like Kano, it’s important to build ecosystems that will keep sustaining all businesses and families that depend on it. It is about the youthful population, and what we can do is to keep them engaged.”
Highlighting the bank’s active involvement in the region, Dr. Okpanachi mentioned that DBN had previously hosted its second annual MSMEs summit in Kano in collaboration with the State Government. This summit aimed to strengthen their core value proposition within the North, where they recognize the potential to shape destinies and create a brighter future for the youth.
“We know that collaborations with laudable organizations such as SDF and Kano Concerned Citizens initiative will continue to nurture sustainable enterprises, bolster community development, and facilitate knowledge transfer that enables the growth of enterprises within the northern region,” stated the MD, emphasizing DBN’s commitment to catalyze positive change in the region.
Alhaji Shehu Dankadai, Chairman of Kano Concerned Citizens initiative, called for town hall meetings at all levels to ensure widespread awareness and participation in utilizing the interest-free loans. He lauded DBN for introducing non-interest loans through Islamic financial institutions, aligning with the principles of Sharia law that prohibit interest-based loans.
Echoing the sentiment, Prof. Murtala Sagagi, Director-General of Dangote Business School, stressed the pivotal role of MSMEs in national socio-economic growth. He urged DBN to collaborate with various stakeholders, including state governments, entrepreneurship development centers, and educational institutions, to bridge the financing gaps hindering MSMEs in the North.
As the non-interest loan framework gains momentum, it holds the potential to drive economic transformation and prosperity for the Northern region, creating a more conducive environment for MSMEs to thrive. With the concerted efforts of institutions like DBN and partnerships with key stakeholders, the future of Northern MSMEs appears more promising than ever before
