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FEC approves take-off loans for Development Bank of Nigeria

The Development Bank of Nigeria has got the Federal Executive Council to seek $1.3 billion loans facility from Multi-lateral financial institutions to aid its effective commencement of operations.

Minister of Finance, Mrs. Kemi Adeosun and Dr. Adesina, President, Africa Development Bank.

In a memo to the Federal Executive Council by the Minister of Finance, Mrs. Kemi Adeosun, the loans facility is expected from the African Development Bank ($450 million), French Development Agency ($1.3 million) and KFW Development Bank ($200 million), a German government-owned development bank.

The Finance Minister, while briefing the State House Correspondence after the weekly FEC meeting on Wednesday, April 5, 2017, stated that “as you know, the Development Bank of Nigeria recently received its licence and is being funded by some long-term loans from some of our development partners”.

“So, the World Bank had given us $500 million repayable over 21 years and all of this is at a concessional rate”.

“The African Development Bank is giving us $450 million and KFW are giving us $200 million as well as the French Development Agency are giving us $130 million”.

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She further noted that “the FEC enthusiastically approved these facilities which are long tenured, meaning that the DBN will be able to lend to our SMEs over much longer period and at much lower rates. So, the impacts on the SMEs will be quite considerable”.

The Central Bank of Nigeria on Wednesday, March 29, 2017 granted a Wholesale Development Finance Licence with national authorization to the Development Bank of Nigeria (DBN) Plc.

The Development bank is to be led by Mr. Tony Okpanachi, an experienced bank and a former Deputy Director with Ecobank Nigeria. He has also Managed Ecobank Kenya, while serving as the Cluster Managing Director, Ecobank East Africa (comprising Kenya, Uganda, Tanzania, Burundi, Rwanda, South Sudan and Ethopia).

The bank major focus is on development of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

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