BREAKING: CBN licenses Development Bank of Nigeria

by Dolapo Adelana

The Central Bank of Nigeria has licensed the establishment of the Development Bank of Nigeria (DBN).

According to the Federal Ministry of Finance, the Development Bank of Nigeria (DBN) is a wholesale financial institution which aims to increase access to finance for MSMEs.

The bank will take off with US$1.3bn, to be provided by the World Bank, the African Development Bank and other international agencies.

[Read Also:] CBN reduces exchange rate for travel allowances, school fees to N360

The DBN will lend to microfinance banks, which will in turn develop specific products at lower interest rate than currently available to SMEs

The goal of the bank is to be positioned as a catalyst for the development of the MSMEs in Nigeria.

While the other development banks (BOA, BOI) are sector-specific, the Development Bank of Nigeria will be size-specific—targeting MSMEs regardless of sector.

[#InCaseYouMissedIt:] Why naira is appreciating – CBN

The primary focus of the DBN is MSMEs. As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will on-lend to MSMEs.

The bank was conceived in 2014, and its management team and board of directors were appointed in 2017.

Leave a reply

Your email address will not be published. Required fields are marked *

cool good eh love2 cute confused notgood numb disgusting fail