X-raying DBN’s Ambitious Five-year Plan

Nume Ekeghe writes on Development Bank of Nigeria’s journey, impact and its plan to boost job creation and inclusive growth in the economy

The Development Bank of Nigeria (DBN) has unveiled a robust five-year strategy that sets an ambitious tone for Nigeria’s development finance landscape. The plan, which stretches to 2029, aims to catalyse the creation of at least two million new jobs, disburse over N1 trillion in credit, and reach more than two million micro, small, and medium-sized enterprises (MSMEs).

Announced at a recent media parley in Lagos, the plan represents a decisive pivot toward scale, inclusion, and sustainability. With a strong track record behind it and bold new commitments ahead, DBN is positioning itself as a transformative force in Nigeria’s MSME sector.

 Building on a Strong Foundation

 Since its operational debut in November 2017, DBN has consistently demonstrated strategic discipline and impact-driven execution. The Bank has disbursed over N1 trillion cumulatively to more than 700,000 businesses, impacting close to 1.2 million jobs—many in fragile or underserved regions such as Borno, Zamfara, Yobe, Katsina, and Adamawa.

 Its efforts have earned global recognition, including two awards at the Global SME Finance Awards and being ranked first in Nigeria’s Transparency and Integrity Index in 2022 and 2023. The Bank also boasts a AAA credit rating from Agusto & Co. and Global Credit Ratings (GCR), as well as a supervisory rating of “Low” and “Stable” from the Central Bank of Nigeria (CBN) for four consecutive years.

 Five-Year AMPLIFY Strategy

 At the heart of DBN’s new direction is the AMPLIFY strategy—an acronym reflecting its commitment to accelerating impact, mobilizing resources, providing capital, leveraging partnerships, innovating, facilitating inclusive access, and yielding sustainable outcomes.

The key highlights of the five-year strategy include, reaching two million MSMEs by 2029, disbursing over N1 trillion in new loans, creating two million new direct and indirect jobs, scaling up partial credit guarantees to N500 billion, crowding in N1.3 trillion in new debt and equity capital and expanding technical assistance to train 500,000 MSMEs. Also committing 40 per cent of new loans to women-led businesses, 30 per cent to youth-owned enterprises, and 15 per cent to businesses in underserved regions.

Inclusion as Development Imperative

 “Development is not just measured in naira and kobo. It is measured by the number of jobs created, the number of women empowered, and the number of businesses we help to thrive,” said DBN Managing Director, Dr. Tony Okpanachi.

According to Okpanachi, DBN’s business model hinges on three interdependent pillars: access to finance, technical assistance, and credit guarantees. This approach enables participating financial institutions (PFIs)—such as commercial banks, microfinance banks, and other licensed entities—to provide affordable credit to Nigeria’s economically active but financially excluded population.

 As of 2024, women-led businesses accounted for 74 per cent of DBN-supported MSMEs, while 45 per cent were youth-owned. These statistics are not only remarkable but also integral to the Bank’s forward-looking strategy.

“We want at least 40 per cent of all new loans to go to women-owned businesses, 30 per cent to youth-led enterprises, and 15 per cent of disbursements to target underserved regions,” Okpanachi emphasized.

 Scaling Technical Assistance

Recognising that capital alone is insufficient, DBN is investing significantly in entrepreneurship education and institutional capacity building. More than 9,500 MSMEs have already benefitted from training programs covering areas like digital marketing, bookkeeping, compliance, and business model development.

Over the next five years, the bank aims to train half a million MSMEs, including a strong push for digital platforms to ensure scalability and cost-effectiveness. “An MSME without the right knowledge will mismanage capital,” said Okpanachi. “We’re investing more in business education.”

 In addition to this, 20 PFIs have already received tailored technical assistance, with more scheduled under the new strategy. This helps de-risk lending to MSMEs by improving institutional capabilities.

 Greening the Development Agenda

Another significant frontier in DBN’s new plan is climate finance. As Nigeria’s first and only Direct Access Entity accredited by the Green Climate Fund (GCF), DBN aims to issue N75 billion to N100 billion in green loans for projects related to renewable energy, clean manufacturing, and sustainable agriculture.

 “Green financing is not just a global trend—it’s a national imperative,” said Dr. Okpanachi. “We intend to build a strong climate-resilient portfolio that supports Nigeria’s environmental and economic goals.”

 Unlocking Growth for Youth Entrepreneurs

 Equity capital remains a missing piece in Nigeria’s MSME financing puzzle, particularly for youth-led startups. DBN, in partnership with the African Development Bank (AfDB), Nigeria Sovereign Investment Authority (NSIA), and other partners, is preparing to launch a Youth Investment Vehicle.

 “Debt is more available than equity. Many youth-led businesses need risk capital, and this vehicle will help meet that gap,” Okpanachi said. The initiative has already secured key approvals and will provide equity financing to startups that may not qualify for loans, offering a critical boost to innovation and employment.

 Sector-Agnostic, Impact-Driven

Though DBN does not lend directly to MSMEs, its sector-agnostic lending model ensures that capital flows into high-impact sectors. The PFIs are mandated to follow strict eligibility criteria and ensure loans go to qualified MSMEs, not corporate clients.

“We are sector-agnostic but focused on scale and impact,” Okpanachi reiterated. “We vet all beneficiaries and disaggregate data by gender, geography, and business size to ensure we’re truly reaching the underserved.”

 Even real estate benefits indirectly, particularly where banks finance commercial spaces for micro-entrepreneurs under flexible repayment plans. This model has enabled small traders to access affordable retail space, further deepening informal sector growth.

 Financial Sustainability

 While focused on development, DBN maintains a commercially disciplined approach. The Bank recently concluded its Annual General Meeting, where shareholders, including AfDB and NSIA, lauded its performance and endorsed the AMPLIFY strategy.

The Bank is targeting a cumulative Profit Before Tax (PBT) of N300 billion over the next five years, supported by fresh capital inflows of N1.3 trillion. These funds will be mobilised through a mix of international development finance, bond issuances, and blended finance structures.

 “You can’t be aspirational without funding to match,” said Okpanachi. “As a long-term lender, we must continuously raise the capital needed to meet our goals.”

 Looking Ahead: Funding Futures

 With MSMEs accounting for over 90 per cent of Nigeria’s businesses and about 46 per cent of GDP, DBN’s strategic blueprint could not have come at a more crucial time. The Bank’s focus on inclusion, sustainability, and innovation is not just about financing businesses it’s about funding futures.

 “We’re not just funding businesses,” Okpanachi concluded. “We’re funding futures. And we will continue to innovate, scale, and impact lives.”

 If successfully executed, DBN’s five-year vision will not only redefine access to finance in Nigeria but also solidify the Bank’s role as a pivotal driver of inclusive economic growth, resilience, and national prosperity.

QUOTE

“Recognising that capital alone is insufficient, DBN is investing significantly in entrepreneurship education and institutional capacity building. More than 9,500 MSMEs have already benefitted from training programs covering areas like digital marketing, bookkeeping, compliance, and business model development.Over the next five years, the bank aims to train half a million MSMEs, including a strong push for digital platforms to ensure scalability and cost-effectiveness.”