DBN MSME funding of ₦1.4 trillion reaches 1.6 million jobs as bank targets two million businesses

The Development Bank of Nigeria (DBN) said the cumulative disbursement of ₦1.4 trillion to micro, small and medium enterprises (MSMEs) has supported the creation of about 1.6 million jobs nationwide by December 2025, as it prepares to expand its reach under a new five-year strategy.

The bank plans to support more than two million MSMEs, with a focus on women-owned businesses, youth-led businesses, and businesses operating in countries with limited access to financing.

The figures were revealed in a statement issued on Thursday following the bank’s seventh Annual Lecture, held at the Transcorp Hilton in Abuja on Wednesday.

According to the statement, the funds were channeled through 84 Participating Financial Institutions to increase credit access for small businesses.

“By December 2025, the DBN has distributed N1.4 trillion cumulatively to MSMEs through 84 Participating Financial Institutions, creating approximately 1.6 million jobs nationwide. Under its new five-year strategy, the World Bank aims to reach more than two million MSMEs, targeting women-led businesses, youth-led businesses, and underserved countries,” the statement read.

Speaking at the event, DBN Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said his priority is to ensure that the benefits of Nigeria’s economic reforms are translated into tangible improvements for businesses across the country.

“Major reforms are now underway. How do we ensure the benefits reach traders in Onitsha, fabricators in Aba, farmers in Kebbi and young founders in Yaba?” he asked.

Okpanachi said the importance of MSMEs to the economy makes their performance important in the broader reform agenda, noting that businesses account for almost half of Nigeria’s Gross Domestic Product and more than 80 percent of employment.

“When reforms work for MSMEs, they also work for the majority of Nigerians,” he added.

He argued that reforms would not be able to deliver widespread prosperity unless entrepreneurs were able to obtain long-term financing, purchase equipment, strengthen their operations and expand their businesses.

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To meet this need, he said DBN provides loans with longer tenors, partial credit guarantees through its subsidiary, Impact Credit Guarantee Limited, and business development support through initiatives such as the Entrepreneurship Training Program.

As part of efforts to address persistent funding constraints, the bank launched the Action for Women in Nigeria initiative, known as DAWN, along with an Impact Report and MSME Data Assets.

The program is designed to increase financing opportunities for women-owned businesses by combining loans with credit guarantees, technical assistance, output-related grants, and access to markets.

Priority areas include agriculture, exports, health, creative industries, technology and environmentally friendly businesses.

Explaining the rationale behind this initiative, Okpanachi said, “DAWN is about moving gender-focused lending beyond intent and turning access into opportunity,”

The bank also signed a $61 million Gender Credit Line agreement with the African Development Bank to strengthen funding opportunities for women-led companies.

In addition to providing financing, Okpanachi called on financial institutions to increase lending to underserved sectors and states. He also urged business owners to formalize their operations and maintain reliable financial records to improve their prospects of obtaining credit.

He challenged policymakers to assess the effectiveness of economic reforms by examining their actual impact on businesses, and urged them to “measure reforms based on what changes occur to businesses at the end of the chain.”

The lecture attracted public and private sector leaders, development partners, regulators and entrepreneurs to discuss how economic reform can produce measurable benefits for small businesses.

Keynote speakers include the Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and the Chairman of the Sovereign Investment Authority of Nigeria, Dr Segun Ogunsanya.

Other participants were Sterling Bank Chief Executive Officer, Abubakar Suleiman; businessman Omoyemi Chukwurah; and Kola Masha of Babban Gona, who participated virtually.

Vice President Kashim Shettima was represented by Dr Fred Iklaga, Senior Technical Advisor in the Office of Special Advisor to the President on Economic Affairs.

Speaking on behalf of the Secretary to the Government of the Federation, Augusta Bekaredebo expressed optimism that the 2026 tax reforms would ease the financial burden on small businesses.

He said “many companies will be smiling” next year because they will be exempt from taxes.

The discussions underscored the importance of ensuring that economic policy changes result in better access to finance, lower operational pressures and stronger growth prospects for MSMEs, which remain a major source of employment and economic activity across Nigeria.