|Approval Date||15 Dec 2014|
|Signature Date||13 Mar 2015|
|Sovereign / Non-Sovereign||Non-Sovereign|
|DAC Sector Code||24030|
The extension of long-term funding in a combination of sovereign loans and equity for an amount of up to USD 500 million from the African Development Bank Group for the new DFI being established in partnership between the FGN and international DFIs such as the AfDB Group, the World Bank, KfW, DFID and AFD. The Development Bank of Nigeria (DBN) will utilize the bulk of the mobilized funds for on-lending to MSMEs operating in various sectors of the Nigerian economy through eligible participating financial institutions while a portion (20% of the AfDB Group funding) will be used to benefit small and medium-sized corporates through PFIs as well. The Development Bank of Nigeria (DBN) will also provide risk-sharing facilities and technical assistance to the PFIs to better serve the targeted beneficiary enterprises.
The project will contribute to mobilizing significant financial resources for banks and non-bank financial intermediaries, ultimately increasing MSMEs’ access to finance, increasing their productive capacity in the country and stimulating growth in various sectors of the economy. This will increase economic output, improve the country’s competitiveness, generate government and export revenues and create employment opportunities. The proposed intervention will also underpin national poverty reduction efforts as well as facilitate national development.
The direct beneficiaries of the intervention are Development Bank of Nigeria (DBN), the Federal Government of Nigeria, as well as MSMEs.
African Development Bank
African Development Fund
|Last Update||12 Jul 2020|