The German Government-owned Development Bank, KFW, has injected a substantial €25 million into Nigeria’s economy. This investment targets the growth and development of Micro, Small and Medium Enterprises (MSMEs) and the renewable energy sector. The Development Bank of Nigeria (DBN) will manage these funds.
The Sun recorded that, DBN’s Managing Director/CEO, Mr. Tony Okpanachi, recently announced in Lagos the signing of this agreement. Okpanachi highlighted KFW’s consistent support of Nigeria’s economy, focusing on revitalizing MSMEs and the energy sector.
“We’ve secured a €25 million credit line from KFW,” Okpanachi said. “This fund will finance renewable energy projects and MSMEs. DBN, a wholesale DFI, will provide these funds to financial institutions for onward lending to small businesses. We’re committed to sustainable economic growth through partial credit guarantees and other supportive measures.”
DBN has already aligned 65 financial institutions with this initiative. These institutions will focus on green and renewable energy, as well as MSMEs, directly supporting small businesses.
Okpanachi emphasized DBN’s role in monitoring and evaluating the fund’s deployment. “We’re not just disbursing funds; we’re ensuring they make a real impact. We’ll work closely with borrowers to understand fund utilization and its effect on their businesses. Our goal is the overall impact on them and the Nigerian economy,” he explained.
Regarding the cost of credit, Okpanachi noted that participating banks would set rates as they bear the credit risks. However, he assured that access to credit would be seamless, benefiting MSMEs significantly. “In these challenging economic times, we’re focused on creating easier access to funds, offering moratoriums and longer tenures to help businesses stabilize,” he added.
Senior Portfolio Manager for KFW, Mr. Pierre Annutsch, echoed this commitment. “We’re not just providing funds; we’re actively involved in the process. This €25 million credit line to DBN signifies our ongoing support for Nigeria’s MSMEs and renewable energy sector,” Annutsch stated.
This financial injection from KFW through DBN is set to catalyze significant growth in Nigeria’s key economic sectors, paving the way for a more robust and sustainable economic future.
