Determined to ease access to funds by ensuring that Micro Small and Medium Scale Enterprises have access to funds, President Goodluck Jonathan on Monday launched the Development Bank of Nigeria.
The event was held at the at the State House Banquet Hall, Abuja.
President Jonathan said SMES remains the backbone of the nation’s economy, recalling the steps taken so far to enhance their capacity with a view to creating more jobs.
According to him, Nigeria has over 17 million Micro, Small and Medium Enterprises, which employ over 32 million people while contributing over 45 per cent to the Gross Domestic Product.
Justifying the establishment of the DBN, the President noted that despite the existence of other developmental institutions, including the Bank of Industry and commercial banks, the funding needs of the MSMEs could not be met.
Jonathan said: “Access to long term finance has been a challenge for the MSMEs. Most MSMEs cannot get long term funds from banks and other financial institutions, forcing them to depend on personal savings, friends and family for loans. These loans are typically short term and come at a high interest rate, thereby stemming the growth of these businesses.”
According to the President, the shortcomings of the nation’s commercial banks and other developmental banks, including the Bank of Industry and Bank of Agriculture, necessitated the establishment of the DBN.
Jonathan also seized the opportunity to launch his campaign handbook titled: “Jonathan’s next four Years,” encapsulating his vision for the country, if he is reelected on Saturday.
The establishment of the Bank according to the Minister of Finance and the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, was to ensure a robust finance backing for the MSMEs
Okonjo-Iweala noted that the bank would be fully operational in the next nine months, targeting loans for at least 20,000 beneficiaries in the first one year of its operations.
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