The
Central bank of Nigeria (CBN) has approved the grant of a Wholesale Development
Finance Institution Licence with national authorisation to the Development Bank
of Nigeria (DBN) Plc.
Central bank of Nigeria (CBN) has approved the grant of a Wholesale Development
Finance Institution Licence with national authorisation to the Development Bank
of Nigeria (DBN) Plc.
Minister
of Finance, Mrs. Kemi Adeosun confirmed the development in a statement issued
Wednesday evening by Director of Information, Salisu Na’inna Dambatta.
of Finance, Mrs. Kemi Adeosun confirmed the development in a statement issued
Wednesday evening by Director of Information, Salisu Na’inna Dambatta.
It
said: “The approval was conveyed in a letter addressed to the Managing
Director/Chief Executive of Officer of DBN dated March 28, 2017.
said: “The approval was conveyed in a letter addressed to the Managing
Director/Chief Executive of Officer of DBN dated March 28, 2017.
“The
letter was signed by the Deputy Governor of the CBN in charge of Financial
System Stability.
letter was signed by the Deputy Governor of the CBN in charge of Financial
System Stability.
“The
approval was subject to meeting the minimum capital requirement of N100 billion
and the reconstitution of the Board of the Bank and reviewing its organogram.”
approval was subject to meeting the minimum capital requirement of N100 billion
and the reconstitution of the Board of the Bank and reviewing its organogram.”
Adeosun,
said that DBN will have access to US$1.3bn (N396.5 billion) which has been
jointly provided by the World Bank (WB), KfW (German Development Bank), the
African Development Bank (AfDB) and the Agence Française de Development (French
Development Agency).
said that DBN will have access to US$1.3bn (N396.5 billion) which has been
jointly provided by the World Bank (WB), KfW (German Development Bank), the
African Development Bank (AfDB) and the Agence Française de Development (French
Development Agency).
The
bank is also finalising agreements with the European Investment Bank (EIB), she
said.
bank is also finalising agreements with the European Investment Bank (EIB), she
said.
The
Minister equally stated that DBN will provide loans to all sectors of the
economy, including, manufacturing, services and other industries not currently
served by existing development banks, thereby filling an important gap in the
provision of finance to Micro, Small and Medium Enterprises (MSMEs).
Minister equally stated that DBN will provide loans to all sectors of the
economy, including, manufacturing, services and other industries not currently
served by existing development banks, thereby filling an important gap in the
provision of finance to Micro, Small and Medium Enterprises (MSMEs).
As
a wholesale bank, the DBN will lend wholesale to microfinance banks, which will
on-lend medium to long-term loans to MSMEs.
a wholesale bank, the DBN will lend wholesale to microfinance banks, which will
on-lend medium to long-term loans to MSMEs.
The
MSMEs contribute about 48.47 percent to the Gross Domestic Products (GDP) of
Nigeria but have access to only about 5 percent of lending from Deposit Money
Banks (DMBs).
MSMEs contribute about 48.47 percent to the Gross Domestic Products (GDP) of
Nigeria but have access to only about 5 percent of lending from Deposit Money
Banks (DMBs).
The
statement added that the Federal Government “expects that the influx of
additional capital from the DBN will lower borrowing rates and the longer
tenure of the loans, will provide the required flexibility in the management of
cash flows, giving businesses the opportunity to make capital improvements, and
acquire equipment or supplies.”
statement added that the Federal Government “expects that the influx of
additional capital from the DBN will lower borrowing rates and the longer
tenure of the loans, will provide the required flexibility in the management of
cash flows, giving businesses the opportunity to make capital improvements, and
acquire equipment or supplies.”
