DBN’s Shareholders Approve N5.83bn Dividend, $2.5m Investment in Proposed Youth Investment Bank

•Okpanachi: over N1.06 trillion loans disbursed to 711,819 MSMEs

James Emejo in Abuja

Shareholders of the Development Bank of Nigeria (DBN), yesterday approved the sum of N5.83 billion as dividend for the 2024 financial year.

This translated to N58.35 kobo per unit of shares held by shareholders.

Shareholders further approved the bank’s bid to invest $2.5 million in Naira equivalent, and take equity share in the proposed Youth Entrepreneurship Investment Bank (YEIB).

The development bank’s shareholders include the Ministry of Finance Incorporated (MOFI), Nigeria Sovereign Investment Authority (NSIA), African Development Bank (AfDB), and the European Investment Bank (EIB).

The federal government of remains the ultimate beneficial owner of the shares held by MOFI and NSIA in DBN.

Speaking at the bank’s 8th Annual General Meeting (AGM) in Abuja, Independent Non-Executive Director, DBN, Mr. Kyari Bukar, said the group achieved a strong financial performance, closing with a Profit Before Tax (PBT) of N38.8 billion, representing 60 per cent increase from N24.5 billion in 2023.

This is as Managing Director/Chief Executive, DBN, Tony Okpanachi, said the bank had disbursed over N1.06 trillion in loans, supporting 711,819 MSMEs across various sectors and regions nationwide.

However, Return on Average Assets (ROAA) rose to six per cent, compared 10 4.6 per cent in 2023.

He said shareholders’ value was also enhanced, as Return on Average Equity (ROAE) increased to15.3 per cent in 2024 from 10.9 per cent  in 2023.

Bukar further noted that the group continued to operate efficiently, reducing the cost to income ratio to 15.6 per cent in the review period from 17.9 per cent in 2023.

He said the group achieved a remarkable 53 per cent growth in gross earnings, rising to N84 billion in 2024 from N54.8 billion in 2023.

The growth was primarily driven by an increase in volume of disbursements throughout the year and higher yields on the average loan portfolio.

Furthermore, income from loans increased of 55 per cent, to N58.5 billion compared to N37.8 billion in 2023.

In addition, total assets size grew by 40 per cent year-on-year to N759.1 billion in 2024 from N544 billion 2023.

He said total assets have grew at 11 per cent CAGR over five years period, increasing from N493.5 billion in 2020 to N759.1 billion by December 31, 2024.

The growth reflected a strategic focus on lending, as evidenced by the bank’s record disbursement of N273 billion in the year.

This underscored its commitment to playing a catalytic role in improving MSMEs access to finance.

Also, loan portfolio grew by seven per cent year-on-year to N438.5 billion from N410.3 billion in 2023. Over the last five years, loan portfolio had grown at a CAGR of 20 per cent.

Bukar said DBN recorded two major milestones in the year under review – its accreditation by the Green Climate Fund (GCF) as the first Direct Access Entity (DEA) and sole authorised channel in Nigeria for accessing green financing from the GCF.

This makes DBN a major player in the country’s fight against climate change, contributing significantly to the country’s pursuit of sustainable development.

He said the bank also reached a significant milestone of N1 trillion in total disbursements to MSMEs since its inception in 2017.

He said, “The bank will remain steadfast in offering financial support, capacity building and advocating for MSMEs in Nigeria.

“As we move forward, DBN remains fully committed to its mandate of accelerating sustainable economic development through MSME empowerment.

“Our focus will be on deepening financial inclusion, leveraging technology for greater impact, and fostering partnerships to drive innovation and scalability.”

However, Okpanachi, said the bank has disbursed over N1.06 trillion in loans, supporting 711,819 MSMEs across various sectors and regions nationwide.

He said the milestone represented a 35 per cent increase in total disbursement value and 44 per cent growth in the number of MSMEs impacted compared to the previous year, underscoring the bank’s unwavering commitment to driving  financial inclusion and sustainable economic growth.

According to him, DBN achieved a notable milestone in 2024, surpassing N1 trillion in cumulative loan disbursements.

He said, “This was made possible through strategic collaborations with our 79 Participating Financial Institutions (PFIs), further strengthening  nancial inclusion and driving sustainable economic growth.

“At Development Bank of Nigeria (DBN), we remained steadfast in our commitment to empowering MSMEs, a critical pillar of Nigeria’s economy.

“Through the dedication and expertise of our highly skilled team, we ensured that the necessary  nancing reached the businesses that needed it most.”

He also said in the review period, DBN facilitated loans to over 200,000 MSMEs across more than 10 key sectors, bringing the total number of businesses supported since inception to 711,819.

The MD further shed more light into the bank’s interest in YEIB,   clarifying that the initiative was not a typical conventional bank but an investment vehicle to provide assets to equity investment in youth-owned businesses.

He told THISDAY that the bank’s move was in line with its “mandate to ensure that we also provide employment opportunities for the youth of this country.

“We’re coming in with this approval from our shareholders to be able to take on our own share of DBN as a shareholder in that community.

“And like I said, working with African Development Bank, we are going to provide additional funding through that.

“We’re going to provide that platform to invest in youth-owned businesses and improve, encourage entrepreneurship in Nigeria.”

Okapanachi expressed hope that all framework and required incorporation should be concluded this year, with  actual commencement of operations slated for early 2026.

He said, “Let me put on record that YEIB it’s not the typical bank; it’s not a bank as you conceive it.

“It’s an investment vehicle that is focused on youth. It’s going to be an investment vehicle that will be used to be able to provide equity investment in youth-owned businesses.”