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$1.3b Development Bank of Nigeria set to take off

Minister for Finance, Kemi Adeosun PHOTO: SUNDAY AGHAEZE/STATE HOUSE

Minister for Finance, Kemi Adeosun PHOTO: SUNDAY AGHAEZE/STATE HOUSE

The Development Bank of Nigeria (DBN) is set to take off as the Federal Government has concluded the selection process of the executive management team of the development financing institution and has equally applied for an operating license from the Central Bank of Nigeria (CBN).

The team, however, is being kept under wraps as attempts to get the federal ministry of finance officials to divulge the details of the team was rebuffed yesterday. They insisted that the Finance Minister Kemi Adeosun would unveil the team at a briefing next week.

The $1.3 billion (N396.5 billion) Development Bank of Nigeria is jointly funded 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) for more investment.

The DBN’s major mandate is to spur growth through financing of projects, particularly the medium, small and medium scale industries .Director of Press in the Federal Ministry of Finance, Alhaji Salisu Dambatta said: “The 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).”

Dambatta also said that as a wholesale bank, the DBN would lend wholesale to microfinance banks, which would provide medium to long-term loans to MSMEs. Dambatta further clarified that the operations of the DBN would not in any way result in the elimination of other sectoral development financing institutions like the Bank of Industry (BOI), Bank of Agriculture (BoA) or any other existing development bank.

This post was syndicated from The Guardian NigeriaThe Guardian Nigeria. Click here to read the full text on the original website.

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