DEVELOPMENT Bank of Nigeria Plc (DBN), has partnered with LAPO Microfinance Bank Limited to provide lending to about 10,000 MSMEs.
DBN is the first wholesale development finance institution in Nigeria.
Commenting on this partnership, the MD/CEO of DBN, Tony Okpanachi said, “This is a milestone achievement and I am particularly happy that we are getting a lot of traction on our lending activities with LAPO.
“The collaboration is encouraging because they were among the first three Microfinance Banks we commenced our initial pilot lending within November 2017.
“I must commend the management team for keying into our business model and I strongly believe we can work together to alleviate the financial constraints faced
by MSMEs”.
Also speaking on the partnership, and n LAPO’s commitment to the development of Micro, Small and Medium Scale Enterprises in Nigeria, MD/CEO, Godwin Ehigiamusoe said, “We strongly believe in the capacity and potentials of the MSMEs in alleviating poverty and creating jobs for our growing population. We are happy with the partnership and we will continue to work with DBN to ensure that collectively, we are able to provide the much-needed funding that the MSMEs require to flourish.”
The IFC MSME Finance Gap Report in 2017, there are over 37 million MSMEs contributing to over 50 per cent of Nigeria’s GDP.
However, Head, Corporate Services of DBN, Idris Saliu said in a statement that less than five per cent of these businesses have access to credit in the financial system.
“DBN’s entrance and its interventions are, therefore, relevant and timely.
“They will reverse this trend by making it easier for MSMEs to access financing to build and expand their businesses and unleash the power of the MSME business segment to drive national economic development.
LAPO Microfinance Bank Ltd is a pro-poor financial institution committed to the social and economic empowerment of low-income households through provision of access to responsive financial services on a sustainable basis.
The Institution was established in the late 1980s as a Non-Governmental Organization (NGO) by Godwin Ehigiamusoe in response to the effects of the implementation of the Structural Adjustment Programme (SAP) in 1986. In 2010, LAPO obtained the approval of the Central Bank of Nigeria (CBN) to operate as a State Microfinance Bank and in 2012, it got an approval as a National Microfinance Bank.
Over the years, LAPO has emerged as a leading MfB that delivers a wide range of financial services to over a million people in Nigeria.
On the other hand, Development Bank of Nigeria (DBN) was conceived by the Federal Government of Nigeria in collaboration with World Bank, African Development Bank, European Investment Bank (EIB), GermanDevelopment Bank (KfW) and the French Agency for Development (AFD) to address financing challenges facing Micro Small and Medium Enterprises (MSMEs) in Nigeria.
It commenced operations in November 2017 and it has been a story of steady progress and rising hope for MSMEs since then.
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