DBN guarantees 11,000 loans worth N91 billion through Impact Credit Guarantee – The Whistler Nigeria
Development Bank of Nigeria Managing Director Tony Okpanachi said the bank had disbursed over 11,000 loans worth N91 billion to micro-small and medium-sized enterprises (MSMEs) through the Impact Credit Guarantee initiative.
Okpanachi disclosed this at an event attended by representatives from all of Nigeria’s Development Finance Institutions (DFIs).
The event focused on “Innovative Financing for Sustainable Growth and Development”.
The DBN boss said through the ICG, “A loan guarantee (of) over 11,000 (has been disbursed) to MSMEs worth over 91 billion naira, so they are in business for more than two years.
He said new borrowers received more than 19% of the collateral provided, adding that “most financial institutions don’t operate” using such a model.
Collateral is denominated in Naira. But other credit guarantees are denominated in foreign currencies, he added.
The boss of DBN explained that the bank provided a five-year credit guarantee to MSMEs with a risk-sharing platform.
Okpanachi said the role of MSMEs in any economy cannot be overstated.
He said that in “April 2022, ICG has onboarded about 12 financial institutions that they can lend or guarantee through them.
“ICG is accessible to everyone to upgrade and its activities have created more than 29,000 jobs.”
Professor Joseph Nnanna, Chief Economist of DBN who spoke at the event, lamented that Nigeria largely suffers from structural unemployment.
According to him, he unbalanced the health sector, the education sector, adding that “the labor market is the main reason for the mismatch”.
He said: “While the level of unemployment continues to rise, the market failure exists, DFIs have individually filled the gaps, essentially demonstrating profitability, demonstrating non-financial indicators such as job creations and many more. ‘others.
“I sincerely believe government is a collaborative effort, we need to collaborate more to achieve inclusive goals and exponential impact.
“Children remain the future, and as we move forward, it’s important for us to think primarily about the future.
“Health sector, education sector are still lacking but ICT is growing against the back door of the Covid-19 pandemic, we have witnessed a lot of hope, association and pressure offering different innovative ways to generate new ideas for business growth.”