DBN Secures €40m Arab Bank Facility to Boost MSME Lending, Financial Inclusion

The Development Bank of Nigeria (DBN) has secured a €40 million credit facility from the Arab Bank for Economic Development in Africa (BADEA), in a move expected to bolster long-term financing for small businesses and reinforce financial inclusion efforts in Africa’s largest economy.

The agreement, which was sealed on the sidelines of the ongoing 2026 IMF/World Bank Spring Meetings in Washington will see the funds channelled through participating financial institutions, enabling the provision of longer-tenor loans to micro, small and medium-sized enterprises (MSMEs).

Speaking at the agreement signing ceremony, BADEA President Abdullah Almusaibeeh, said “tThis partnership with the Development Bank of Nigeria reflects BADEA’s firm commitment to supporting inclusive private sector-led growth in Africa. By strengthening DBN’s capacity to reach MSMEs, women, and youth-led enterprises, this facility will help unlock productive investment.”

The latest facility comes as Nigeria leans more heavily on concessional and blended financing to plug widening funding gaps, amid the fallout from successive global shocks ranging from the COVID-19 pandemic to geopolitical tensions that have tightened capital flows and heightened debt vulnerabilities across emerging markets.

Operating as a wholesale lender, DBN provides financing and credit guarantees to commercial banks, which in turn on-lend to businesses. The new line of credit is expected to support lending across priority sectors such as agriculture, manufacturing, energy, education and technology, aligning with ongoing efforts to diversify the economy away from oil dependence.

On his part, Chief Executive of the DBN, Tony Okpanachi, said “this facility marks an important milestone in our collaboration with BADEA. It strengthens our capacity to deepen access to finance for MSMEs, particularly women- and youth-led enterprises, while supporting job creation and sustainable growth.

“We look forward to leveraging this partnership to deliver measurable impact and further advance our mandate of inclusive economic development,” Okpanachi said.