Jonathan Launches Development Bank Of Nigeria

President Goodluck Jonathan Monday officially launched the Development Bank of Nigeria (DBN).

The President who noted that the small and medium enterprises have always been the backbone of the nation’s economy pointed out that the sector has never had the opportunity of accessing cheap funds for its development.

He disclosed that the nation has over 17 million Micro, Small and Medium Enterprises (MSMEs) which employ over 32 million people while contributing over 45% to the Gross Domestic Product (GDP).

According to him, existing developmental institutions in the country, including the Bank of Industry (BoI) and other commercial banks can not satisfy the funding needs of the MSMEs hence the establishment of the DBN.

He regretted that “access to long term finance has been a challenge for the MSMEs. Most MSMEs cannot get long term funds from banks and other financial institutions, forcing them to spend on personal savings, friends and family for loans. These loans are typically short term and come at a high interest rate, thereby stemming the growth of these businesses.”

The President said that the inability of the nation’s commercial banks and other envelop mental banks, including the Bank of Industry (BoI) and Bank of Agriculture (BoA) necessitated the establishment of the DBN.

Jonathan also seized the opportunity to launch his campaign handbook titled ‘Jonathan’s next four Years’ encapsulating his visions for the country should he get reelected.

The Finance Minister and the Coordinator of the Economy, Dr. Ngozi Okonjo-Iweala, explained that the establishment of the bank was for a robust finance backing for small and medium enterprises.

She disclosed that the wholesale developmental institution plans to offer loans to at least 20,000 beneficiaries in the first one year of its operations and is billed to start business in the next nine months.

It would be recalled that the Federal Executive Council recently approved a multi-Donor credits from the International Bank for Reconstruction and Development of the World Bank, Africa Development Bank, Germany and French Development Agency in the sums of 500 million US dollars, 450 million US dollars ,200 million US dollars and 130 million US dollars for the establishment of the DBN.