Development Bank Crosses N1trn MSME Lending Mark, Plans N1.3trn Capital Mobilisation

Development Bank of Nigeria (DBN) has surpassed N1 trillion in cumulative disbursements to Micro, Small and Medium Enterprises (MSMEs) and unveiled a new five-year growth strategy that includes plans to mobilise N1.3 trillion in fresh debt and equity capital to further expand access to finance for small businesses across the country.

Managing Director of DBN, Dr. Tony Okpanachi, disclosed this during a media parley in Lagos, where he outlined the bank’s next phase of growth aimed at deepening financial inclusion, supporting underserved businesses and creating jobs nationwide.

According to Okpanachi, the wholesale development finance institution has disbursed more than N1 trillion through 84 participating financial institutions since commencing operations in 2017. The funding has reached over one million end-borrowers and supported the creation of more than 1.6 million jobs across Nigeria.

He said the bank’s new five-year strategy is designed to scale up its developmental impact by increasing loans outstanding to N1 trillion, growing guarantees issued to N500 billion and mobilising N1.3 trillion in additional capital to support MSME growth.

The strategy is expected to generate two million direct and indirect jobs while delivering cumulative profit before tax of about N300 billion over the period.

As part of efforts to promote inclusive growth, DBN plans to direct 40 per cent of its lending to women-led businesses and 30 per cent to youth-led enterprises. The bank also intends to expand financing to underserved geopolitical zones and economically disadvantaged states.

Okpanachi noted that women have remained the largest beneficiaries of DBN’s interventions, accounting for 77 per cent of all businesses reached since inception, while youth-owned enterprises represent 28 per cent of beneficiaries.

He added that more than N108 billion has been disbursed to over 132,000 MSMEs operating in economically disadvantaged states, including Borno, Adamawa, Katsina, Yobe and Zamfara.

The bank’s 2025 performance also reflected its growing reach and impact. During the year, DBN disbursed more than N358 billion to over 289,000 MSMEs, with women accounting for 81 per cent of beneficiaries and youth-led businesses representing 17 per cent.

In addition, N59 billion was channelled to more than 63,000 businesses operating in economically disadvantaged regions during the year.

Beyond providing financing, DBN said it has trained more than 52,000 MSMEs nationwide and delivered technical assistance to over 20 participating financial institutions to strengthen their capacity to lend effectively to small businesses.

Its credit guarantee subsidiary has also expanded significantly, issuing over N512 billion in guarantees to more than 100,000 MSMEs since 2019. In 2025 alone, guarantees worth N233 billion were extended to more than 39,000 businesses.

Looking ahead, the bank plans to deepen its green finance initiatives by targeting between N75 billion and N100 billion in green loans outstanding, while expanding its entrepreneurship and capacity-building programmes to reach 500,000 cumulative MSME beneficiaries.

DBN commenced operations in November 2017 as a wholesale development finance institution established to improve access to finance for Nigeria’s underserved MSME sector through eligible financial intermediaries. Since then, it has positioned itself as a key driver of small business financing and economic development in the country.