DBN: We disbursed N631bn to 313,000 MSMEs in 2022

Tony Okpanachi, managing director and chief executive officer (CEO) of the Development Bank of Nigeria (DBN), says the challenges projected in outlooks for 2023 will hit micro, small, and medium enterprises (MSMEs) hard.

Okpanachi spoke at the bank’s annual general meeting (AGM) in Abuja on Tuesday.

Speaking on its activities in 2022, the managing director said the bank disbursed about N631 billion to over 313,000 MSMEs across the country.

He said the bank significantly improved its lending in 2022 compared to the N482 billion given to 208,000 MSMEs in the preceding year.

According to Okpanachi, the credit disbursements represented a 31 percent growth in financing support and 50 percent growth in the number of MSMEs impacted.

He added that out of the total the number of MSME beneficiaries of DBN funds over the five years, 67 percent were women, and 27 percent were young people — with over 250,000 jobs already created.

“With a deepening impact within five years of operations, the bank had been at the forefront of development, playing a focal and catalytic role in alleviating financing constraints for Nigeria’s underserved MSMEs,” the DBN CEO said.

Okpanachi also said the 2022 financial year ended with an impressive operational and financial performance, despite challenges within the operating environment.

He said within the year under review, the bank achieved earnings of N47.6 billion and a profit-before-tax (PBT) of N29.5 billion, as well as the cost-to-income ratio of 15.9 percent.

The DBN boss added that the low cost-to-income result emphasises the impact of the cost-saving measures implemented by the development finance institution during the financial year.

“The year 2022 was a rewarding year despite the challenges. Our focus will continue to be on our mandate,” Okpanachi said.

“For us, the 2023 outlook is critical, and we will take every opportunity it presents to deliver more value to our stakeholders. Based on many projections for the year 2023, it will most likely constitute more challenging times, with many small businesses taking the hit.

“However, in all these and against all odds, we remain resolute and optimistic about a brighter tomorrow for DBN and the Nigerian MSMEs.”

On his part, Shehu Yahaya, chairman of DBN, said the bank was willing to deepen its commitment to expand funding for Nigerian MSME ecosystem, through the participating financial institutions (PFIs).

Yahaya said the bank will also continue to engage with all stakeholders to search for solutions and influence policies aimed at addressing the constraints faced by small businesses.

“In the coming year, especially given the context of the general election and the uncertainties engendered by political transition, the bank will intensify its efforts to develop ideas, policies, programmes, and projects to boost growth, help bolster macroeconomic frameworks,” he said.

“We would also reduce financial vulnerabilities, provide support to vulnerable population groups, and reduce the long-term impacts of the global shocks of recent years on the MSMEs — all critical to how we can flourish as a nation.”