Nigeria’s Development Bank of Nigeria (DBN) has disbursed more than US$734.8 million in financing to small businesses and set an ambitious target of creating two million jobs over the next five years as part of a new expansion strategy focused on small and medium-sized enterprises.
The bank said its cumulative lending has now surpassed N1 trillion since inception, underscoring its role in supporting micro, small and medium-sized enterprises (MSMEs), which remain the backbone of Nigeria’s private sector.
Speaking at a media briefing in Lagos, DBN Managing Director Tony Okpanachi said the institution’s next phase of growth would focus on scaling access to credit, expanding outreach and deepening financial inclusion in underserved regions.
“Over the next five years, we intend to accelerate our impact through increased lending, broader reach, and deeper intervention in underserved areas,” Okpanachi said.
The bank’s five-year strategy, themed “SCALE,” aims to significantly expand financing flows to small businesses while addressing structural constraints that limit access to credit across Africa’s largest economy.
In the 2025 financial year alone, DBN disbursed more than N358 billion, supporting over 289,000 MSMEs across various sectors of the economy.
A significant share of beneficiaries was located in economically disadvantaged states, including Borno, Adamawa, Katsina and Zamfara, where access to formal credit remains limited due to security and infrastructure challenges.
According to the bank, targeted interventions helped create approximately 376,000 jobs during the reporting period, highlighting the role of SME financing in employment generation.
DBN also issued guarantees worth over N23.3 billion to more than 39 participating financial institutions, helping to de-risk lending to small businesses.
Women and youth accounted for a substantial portion of beneficiaries, reflecting the bank’s focus on inclusive finance and economic empowerment.
Under its new strategic plan, DBN aims to expand its loan portfolio to N1 trillion and increase guarantees to N500 billion, while attracting an additional N1.3 trillion in debt and equity capital.
The institution also plans to allocate 30 percent of its lending to youth-led enterprises and 40 percent to women-led businesses, alongside a significant push into green financing estimated at N75–N100 billion.
In addition, 75 percent of total lending is expected to be directed toward underdeveloped geopolitical zones in an effort to reduce regional disparities in economic opportunity.
The bank said it also plans to train around 500,000 MSME participants over the next five years as part of broader capacity-building efforts.
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DBN’s management said the expansion strategy is designed not only to increase lending volumes but also to strengthen the resilience and competitiveness of Nigeria’s small business ecosystem.
The institution has received multiple local and international recognitions, including strong governance ratings from domestic agencies and acknowledgements from global development finance institutions.
It has been named a “Best Project in Nigeria” by the World Bank and accredited as a Green Climate Fund direct access entity, reflecting its role in climate-related and sustainable financing initiatives.
Analysts say the bank’s expansion comes at a critical time for Nigeria’s economy, where high unemployment, inflationary pressures and limited access to credit continue to constrain private sector growth.
Small and medium-sized enterprises account for the majority of employment in Nigeria, making them central to efforts aimed at economic diversification and job creation.
If successfully implemented, DBN’s five-year strategy could significantly expand access to finance for small businesses while contributing to broader efforts to stimulate inclusive economic growth and reduce unemployment across the country.
