DBN Enlightens MSMEs On Ways To Thrive Amidst Headwinds

Recognising the pivotal role of MSMEs in the economy, the Development Bank of Nigeria (DBN) enlightened MSMEs on ways to thrive amidst socio-economic and political headwinds.

The managing director/CEO of DBN, Dr. Tony Okpanachi stated this at the fifth DBN Annual Lecture 2024 in Abuja, yesterday, which had the theme’ Empowering Nigerian MSMEs In A Challenging Global Landscape’.

According to Okpanachi, Micro, Small, and Medium Enterprises (MSMEs), often overlooked but undeniably, are the backbone of our economic landscape, driving job creation, innovation, and the nation’s overall prosperity.

“The Development Bank of Nigeria’s objective is to alleviate financing constraints faced by MSMEs and small Corporations in Nigeria by providing financing and partial credit guarantees to eligible financial intermediaries on a market-conforming and fully financially sustainable basis. We have dedicated ourselves to achieving this objective through several initiatives, including the DBN Annual Lecture, which kicked off in 2019.

“As Nigeria’s primary development finance institution, we recognise that the current global economic climate presents a formidable challenge to MSMEs, particularly in Nigeria where rising production costs, inflation, unstable exchange rates, and disruptions in the global supply chain affect output.”

Okpanachi noted that the annual lecture presents plausible alternatives on how MSMEs can thrive amidst these socio-economic and political headwinds, so we go the extra mile to bring together the best brains to share their perspectives.”

He added that the government has taken significant steps to address these challenges through various initiatives to create a more enabling environment for MSMEs, saying that “there is still more that can be done.

We must support the government’s efforts by working together creatively and implementing innovative strategies to empower MSMEs and unlock their full potential.”

Also speaking at the event, the managing director and chief executive officer of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, urged the Nigerian government to establish a dedicated Micro, Small, and Medium Enterprises (MSME) Bank to ensure affordable financing for small businesses.

Speaking on the theme “Empowering Nigerian MSMEs in a Challenging Global Landscape,” Dr Onyeali-Ikpe emphasised the importance of institutions specifically designed to support the financial needs of MSMEs.

She also highlighted the burden of double taxation small business owners face, noting that multiple tax authorities often target MSMEs, forcing many to close their operations.