As Nigeria intensifies efforts to diversify its economy, create jobs, and promote inclusive growth, the Development Bank of Nigeria (DBN) is emerging as a key driver of enterprise financing through its expanding support for small businesses.
The bank has provided more than N1 trillion in financing to micro, small, and medium enterprises (MSMEs) since it began operations in 2017, highlighting the scale of Nigeria’s credit gap and the role of targeted development finance in bridging it.
MSMEs account for over 90 per cent of businesses in Nigeria and contribute significantly to economic output. However, limited access to affordable credit continues to restrict their expansion, productivity, and job creation potential.
High interest rates, strict collateral requirements, and lack of credit history have left many entrepreneurs unable to secure funding from commercial banks, trapping them in low-growth cycles
To address this challenge, DBN operates as a wholesale development finance institution rather than a direct lender. It channels funds through deposit money banks, microfinance banks, and other financial intermediaries, enabling them to extend credit to underserved businesses.
Through this structure, the bank has supported over one million MSME loans across multiple sectors including agriculture, manufacturing, trade, logistics, and services.
DBN’s interventions have placed strong emphasis on inclusion. Women account for about 77 per cent of beneficiaries, while youth represent 28 per cent of supported entrepreneurs.
The bank has also prioritised underserved regions, disbursing more than N108 billion to over 132,000 MSMEs in states such as Borno, Yobe, Adamawa, Katsina, and Zamfara.
These investments aim to strengthen economic resilience in areas with limited access to formal credit.
The institution estimates that its financing interventions have helped create over 1.6 million direct and indirect jobs since inception.
By enabling small businesses to expand operations, purchase equipment, and increase production, DBN’s funding has generated ripple effects across supply chains and local economies.
Beyond funding, DBN has trained more than 52,000 MSMEs in financial literacy, business planning, governance, and risk management.
It has also supported over 20 financial institutions with technical assistance and developed a learning platform to scale business development training nationwide.
To reduce lending risks for financial institutions, DBN operates a credit guarantee scheme that shares potential loan default risks.
Since 2019, it has issued over N512 billion in guarantees, supporting more than 100,000 MSMEs and encouraging banks to extend credit to higher-risk but viable businesses.
In 2025 alone, DBN disbursed over N358 billion, supporting about 289,000 loans. Women accounted for 81 per cent of beneficiaries, while youth made up 17 per cent.
The bank also trained over 48,000 MSMEs during the year and facilitated the creation of more than 376,000 jobs.
DBN has maintained a “Low” and “Stable” supervisory rating from the Central Bank of Nigeria and holds AAA ratings from Agusto & Co. and GCR.
It has also received recognition from institutions such as the World Bank and the SME Finance Forum, reinforcing its credibility as a leading development finance institution.
Looking ahead, DBN aims to reach over two million MSMEs, mobilise additional capital of about N1.3 trillion, and expand its loan portfolio to N1 trillion.
It also plans to increase support for women-led businesses to 40 per cent, youth-led enterprises to 30 per cent, and underserved regions to 15 per cent, while building a green finance portfolio worth up to N100 billion.
As Nigeria continues to pursue economic diversification and inclusive growth, DBN’s model demonstrates how structured development finance can unlock entrepreneurship, reduce inequality, and stimulate large-scale job creation.
With over N1 trillion already deployed, the bank’s impact underscores the central role MSMEs play in shaping Nigeria’s economic future.
