The Development Bank of Nigeria (DBN) has set an ambitious goal to increase its debt and equity capital financing to N1.3 trillion over the next five years. During a media briefing in Lagos, Tony Okpanachi, the managing director of DBN, highlighted that the new funding initiatives are aimed at realizing the bank’s job creation objectives.
In his address, Okpanachi outlined a strategic plan for capital raising that will encompass both local and international funding sources, as part of DBN’s effort to enhance its support for micro, small, and medium enterprises (MSMEs). He emphasized the importance of diversifying and strengthening their funding relationships to maximize their impact.
“We are focused on three main strategies: expanding our funding sources, deepening our existing relationships, and utilizing current partnerships to attract additional investment,” Okpanachi stated. He noted that development partners are increasingly keen to engage with the DBN, given its strong reputation in the Nigerian market.
To achieve the ambitious impact desired, the DBN aims to “crowd in” more partners for both debt and equity financing, making it an appealing platform for new entrants looking to invest in Nigeria. Okpanachi remarked, “Many partners want to collaborate with us because of our established reputation. It’s essential that we harness these opportunities effectively.”
The bank is tapping into multiple funding avenues, including existing debt sheets from various institutions like the African Development Bank (AfDB) and KFW, while also planning a bond program to raise local funds. The timing for these initiatives will depend on favorable macroeconomic conditions.
Job Creation Targets
Additionally, the DBN is targeting the creation of two million jobs within the next five years, building on the success of 1.2 million jobs facilitated over the past six years. Okpanachi indicated that the focus will be on labor-intensive sectors such as agriculture, manufacturing, and green energy, which have shown the greatest potential for job creation.
“We are deliberately prioritizing sectors that are more labor-intensive as opposed to those that rely on advanced technology, as Nigeria urgently needs more job opportunities,” he explained. “Even our initiatives in green energy will focus on manufacturing sectors with higher employment rates, aligning with our strategic objectives.”
Through these measures, the DBN aims not only to bolster Nigeria’s economic landscape but also to play a pivotal role in alleviating unemployment and fostering sustainable development.