FG urges DBN to step up affordable financing to MSMEs

With the increasing difficulties facing the Micro Small and Medium Enterprises (MSMEs) in Nigeria as a result of the disruptive effects of the Russia-Ukraine war on the economy and its consequent impact on the cost of doing business, the federal government has directed the Development of Nigeria (DBN) to step up and expand its funding windows to provide affordable financing to a wider cross-section of MSMEs.

Also, the federal ministry of finance, budget and national planning and all its agencies stand ready to utilise the fiscal policy tools at their disposal to support the DBN and other public and private sector actors working towards the common goal of supposing the MSMEs.

The minister of finance, budget and national planning, Mrs Zainab Ahmed stated this, on Thursday, in Abuja at the Development Bank of Nigeria’s 3rd Annual Lecture Series with the theme: “Thriving in the Face of Domestic and Global Disruptions”.

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• FG urges DBN to step up affordable financing to MSMEs
• FG urges DBN to step up affordable financing to MSMEs

She said, “It is important that the DBN step up to the plate and expand its funding windows to provide affordable financing to a wider cross-section of MSMEs.

Mrs Ahmed noted that this has become necessary in view of the disruptive effects of the Russia-Ukraine war on the economy and its consequent impact on the cost of doing business, resulting in increased difficulties for the MSMEs.

The minister commended the important role played by the DBN in facilitating access to finance, and with a total loan disbursement of N482 billion to 208,000 MSMEs in 2021, of which 27 per cent are youth-owned while 66 per cent are owned by women, even as the DBN continues to be a major driver of MSME growth in Nigeria.

Mrs Ahmed pointed out that “the relatively low contribution of MSMEs to exports is concerning given their significant contribution to nominal GDP and for this reason, urgent steps are being taken to alleviate the binding constraints limiting MSME participation in cross-border trade.”

Dr Shehu Yahaya, chairman, Development Bank of Nigeria Plc gave the commitment that DBN will continue to work towards building the capacity of MSMEs to ensure the elimination of the financing constraints faced by this critical sector of the economy and transform them into instruments for positive and sustained change.

He said despite the significant changes taking place, like old certainties being discarded, and new realities emerging at an unprecedented rate, Nigeria must position itself to achieve growth and development in spite of all the challenges faced.

In his welcome address, Dr Tony Okpanachi, managing director/CEO said that the DBN will continue to work with its Participating Financial Institutions (PFIs) to eliminate the financing constraints faced by this critical sector of the economy.