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[Abuja]–The Minister of Finance, Mrs. Kemi Adeosun has stated that the new Development Bank of Nigeria (DBN), upon commencement of operations will effectively tackle the problems hindering the growth of the SMEs, stating that the bank is being positioned to improve the Small and Medium Scale Enterprises sector for the overall development of the nation’s economy.
Adeosun disclosed this on Monday in Abuja during an inaugural Board/Management/Development partners’ retreat of the DBN, organized to get the bank ready for immediate operation upon the issuance of its license by the Central Bank of Nigeria (CBN).
She decried the present situation where SMEs account for 45 per cent of the Nigeria’s Gross Domestic Product (GDP) but just 10 per cent of bank credit, opinion out that the country’s financing of MSMEs lagged significantly behind other countries, including Brazil (63 per cent), Ghana (36 per cent), China (30 per cent), Kenya (24 per cent), and South Africa (21 per cent)
She however believed that the DBN operations will improve the sector, stating that the bank will lend to microfinance banks, which will in turn develop specific products for specific markets at a lower interest rate than the one currently available to SMEs.
Adeosun then assured the Board that the Federal Government is ready to provide support for the new development financial institution.
The new Development Bank of Nigeria, which was conceived in 2014, is a government owned wholesale financial institution which aims to increase access to finance for Micro, Small and Medium Enterprises (MSMEs) through eligible financial intermediaries (“participating financial institutions”).
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