The Development Bank of Nigeria (DBN) has secured approval from its institutional shareholders to invest $2.5 million in equity into the proposed Youth Entrepreneurship Investment Bank, a new initiative aimed at boosting youth-owned enterprises in Nigeria.
The Managing Director/CEO of DBN, Mr. Tony Okpanachi, disclosed this on Wednesday in Abuja during the bank’s 8th Annual General Meeting (AGM) and the official presentation of its 2024 financial report to shareholders.
The Youth Entrepreneurship Investment Bank is being developed in collaboration with the African Development Bank (AfDB) and the Nigerian Sovereign Investment Authority (NSIA), and is set to launch early 2025.
“This initiative aligns with our mandate to foster job creation and support youth entrepreneurship in Nigeria,” Okpanachi stated. “With shareholder approval now secured, we will proceed to obtain the necessary approvals from the Federal Ministry of Finance to finalize arrangements with AfDB.”
He clarified that the new institution is not a conventional commercial bank but an investment vehicle designed to provide equity support to youth-owned businesses. NSIA is taking the equity lead alongside DBN, with additional strategic and international partners expected to join once operations commence.
“The African Development Bank is not taking equity but will contribute funding through debt financing to strengthen the capital base,” Okpanachi explained.
In a notable expansion of its core activities, DBN reported a significant increase in disbursements in 2024. The bank disbursed N273.13 billion to Participating Financial Institutions (PFIs), reflecting a 75% increase from N155.7 billion in 2023. Cumulatively, the bank achieved a disbursement total of N1.06 trillion, a 35% growth from 2024.
In terms of outreach, the bank provided funding to 711,819 end-borrowers, a 44% increase from 494,819 in 2023. Of this, N49 billion was directed to over 69,182 MSMEs in economically disadvantaged regions, including Borno, Adamawa, Katsina, Yobe, and Zamfara.
As part of its strategic investment moves, DBN also liquidated its holdings in ICGL debt securities amounting to N20.49 billion and converted them into equity, increasing its shareholding to 20.49 billion shares at N1 per share.
Okpanachi further highlighted the bank’s growing portfolio of impact-driven subsidiaries, including its wholly owned credit guarantee company, which addresses DBN’s third mandate of providing partial credit guarantees to enhance credit access for underserved businesses.
With its strategic expansion and financial strength, DBN reaffirmed its commitment to supporting Nigeria’s development agenda, particularly in empowering the youth and scaling the growth of MSMEs across the country.
