Development Bank of Nigeria | How to Get a Loan &Repayment

The Development Bank of Nigeria (DBN) was set up by the Federal Government of Nigeria (FGN) in collaboration with global development partners to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.

The Development Bank of Nigeria (DBN) was set up as a wholesale development finance institution (DFI) to provide sustainable financing through eligible Participating Financial Institutions (PFIs), who would, in turn, lend to end-borrowers – Micro, Small and Medium Enterprises (MSMEs) for the development of that segment.

DBN exists to alleviate financing constraints faced by Micro, Small and Medium Scale Enterprises (MSMEs) and small corporate in Nigeria through providing financing, partial credit guarantees and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis. DBN loan is specifically targeted at small businesses to ensure that such businesses have increased access to financing. In addition, DBN has a longer tenure than other commercial loans, which are usually short-term.

Product and Services of Development Bank of Nigeria

  • Wholesale Lending: development bank of Nigeria provides wholesale term loans and risk-sharing facilities to participating financial institution (PFI) for on lending to Micro, Small and Medium Enterprises (MSMEs)
  • Partial credit risk guarantees: participating financial institution (PFI) can choose to share risks with development bank of Nigeria.
  • Capacity building: technical assistance will be provided to both participating financial institution and Micro, Small and Medium Enterprises (MSMEs)

How to get a Development Bank of Nigeria Loan

  1. Visit your bank: Commercial Bank, Microfinance Bank, Development Finance Institution (DFI) and other Financial Institutions and indicate you want to apply for a DBN Loan.
  2. The Bank appraises the business and loan purpose, and if its assessment is favorable, the Bank applies to development bank of Nigeria for funding.
  3. If development bank of Nigeria approves the loan, DBN will disburse to the Bank for on-lending to end borrowers.

Participating Financial Institutions

Diamond Bank PlcAyodele Olojede – aolojede@diamondbank.com
Ecobank Nigeria Bank PlcNelson Paseda – NPASEDA@ecobank.com
LAWAL Theresa – TOLAWAL@ecobank.com
Fidelity Bank PlcOsaigbovo Omorogbe – osaigbovo.omorogbe@fidelitybank.ng
Wema Bank PlcDotun Ifebogun – dotun.ifebogun@wemabank.com
AB Microfinance Bank Nigeria LtdNnadozie Joseph – nnadozie.ohaji@ab-mfbnigeria.com
Infinity Microfinance Bank LtdOludotun Adewunmi – g.adewunmi@infinitymfb.com
LAPO Microfinance Bank LtdEfosa Aigbe – efosa.aigbe@lapo-nigeria.org
Microcred Microfinance Bank Nigeria LtdOmar Niaz – oniaz@microcred.com
NPF Microfinance Bank PlcJude Ohanehi – jeco0072000@yahoo.co.uk

 

Repayment plans of the development bank of Nigeria

Development bank of Nigeria supports medium to long-term lending to Micro, Small and Medium Enterprises (MSMEs) with a repayment period of up to ten (10) years and a moratorium period of up to eighteen (18) months. This will give the Micro, Small and Medium Enterprises (MSMEs) enough time to repay all loans which will be paid directly to the participating financial institution who will in turn pay development bank of Nigeria.

 

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