- DBN is giving loans to thousands of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Nigeria
- The loans would be disbursed to those in different sectors including commerce, education, manufacturing, agriculture, and others
- According to the chief economist of DBN, over 240,000 jobs have reportedly been created
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The Development Bank of Nigeria (DBN) has announced micro, small, and medium-sized enterprises (MSMEs) in the country would receive N150 billion in 2023.
Joseph Nnanna, the chief economist of DBN, disclosed this to the News Agency of Nigeria (NAN) on Monday, September 11.
Nnanna said the money would be distributed through partner financial institutions for further lending to MSMEs in a variety of economic sectors.
According to him, the goal is to hire 120,000 MSMEs by the end of 2023.
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Different sectors are benefiting from the loan
According to report, Nnanna said the initiative was informed by the rising unemployment rate in the country and the need to drive more growth in the MSME sector.
He claimed over 300,000 MSMEs in the fields of commerce, education, manufacturing, agriculture, and ICT have benefited from the bank's initiative so far.
He added that the bank has noticed some increase in the MSME sector because it tracks the amount of money it distributes through partner financial institutions that create jobs.
Nnanna urged the participating financial institutions to provide the needed support for MSMEs to continue to grow amidst the prevailing economic challenges in the country.
We know we are trying to create jobs and we know that the economy is a bit challenged now, the high interest rates and uncertainty with the agriculture sector given that the Cameroon government is going to open up the dam.
He noted that commercial banks and microfinance institutions would undoubtedly step in and assist those players in their market who require a safety net to keep expanding.
The economist noted that more partnerships with industry stakeholders would be formed in order to reach the goal.
In addition to support from the regulators and its partner institutions, he said the bank needs to collaborate more to achieve inclusive growth.
Legit earlier reported that the CBN disclosed that N503 billion had been repaid by farmers under the Anchor borrowers programme as of February 2023.
The amount represents 52.39% of loans disbursed by the apex bank.
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Legit had reported that the Anchor Borrowers’ Loan Scheme was floated by the CBN to provide cash for enhanced agricultural production in Nigeria.
Several beneficiaries of the loan, however, refused to repay the loan on the maturity date.
Reports say out of the N1.1 trillion disbursed by the CBN to beneficiaries, only about N546 billion has been repaid, leaving a whopping balance of N577 billion.