AfDB Approves $500M To Create Development Bank of Nigeria

AfDB Approves $500M To Create Development Bank of Nigeria

From BusinessDay

The Board of Directors of the African Development Bank (AfDB) Group unanimously approved a financial package of 500 million dollars to support the establishment of the Development Bank of Nigeria PLC (DBN), a statement by the bank said on Wednesday in Abuja.

The statement said the financial package consisted of loans of 450 million dollars and an equity investment of 50 million in the DBN.

It stated that the funds from the AfDB Group would be used to support Micro, Small and Medium-sized Enterprises (MSMEs) operating in various sectors of the Nigerian economy.

“The DBN is being established by the Federal Government of Nigeria in partnership with international development financial institutions such as the AfDB, the World Bank, KfW of Germany and the French Development Agency (AFD).

“Recognising the limitations of the existing Development Finance Institutions (DFIs) in Nigeria, the FGN has decided to establish a DFI, which will be better regulated and more clearly aligned with development priorities.

“Furthermore, to ensure sustainable impact and scale, the mandate, governance and operations of the DBN will be grounded in internationally recognized good practice principles,” it said.

The statement said the structure and operational design of the DBN had been informed by global experience and the designs of successful DFIs from across the world.

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