…Disburses N100bn to 95,000 SMEs across sectors
The Managing Director, Development Bank of Nigeria (DBN), Mr. Tony Okpanachi, has given fresh insights on why many commercial banks and even finance houses decline loan requests from operators of Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.
In his address at the bank’s MSME Summit held in Maiduguri, Borno State, he said “MSME businesses owners need to get their businesses structured with bankable business plans”.
“The perceived absence of a bankable business plan and structure is responsible for their classification as high risk by banks and thereby unwilling to finance them.
Okpanachi, who affirmed the bank’s continued support to MSMEs, disclosed that the bank has disbursed over N100 billion this year to over 95,000 MSMEs across various sectors of the economy.
According to him, “The bank is poised to enhance the access to finance for MSMEs in the commercial city of Maiduguri, Borno State, and the North-East region of the country and thus rejuvenated to its blooming commercial city status after the insurgency experienced in the last 10 years.”
Earlier in his Keynote address the Managing Director/CEO, Peugeot Automobile Nigeria (PAN), Mr. Ibrahim Boyi, noted that the current supply of about $3.7trillion is low compared to the $8.9 trillion potential demand for MSME financing.
He revealed that statistics has shown that a total employment contribution of over 60 million persons and if given the needed support, funding and enabling environment it will do a lot more.
Boyi averred that “There are five major economic sectors that have thrived within the MSME sector in Nigeria; these are Wholesale/Retail Trade; Agriculture; Other Services; Manufacturing, Accommodation & Food Services. These sectors have made a total employment contribution of about 60 million persons, while 10 million persons from these statistics do not have Western Education.”
He called on participants at the summit and MSMEs in general formalise the operations of their various businesses as this will help them effectively position themselves to receiving necessary support to develop and scale up their businesses especially from banks.
