THE Development Bank of Nigeria has unveiled an ambitious strategic plan to significantly expand its financial support of the country’s micro, small, and medium enterprises sector.

The bank projects issuing N500bn in guarantees and growing its outstanding loan portfolio to N1tn within the duration of its current five-year plan.

Speaking at a media parley in May 2025, DBN’s management highlighted the institution’s commitment to bridging Nigeria’s financing gap for MSMEs by working through participating financial institutions, including commercial banks, microfinance banks, and other development finance institutions.

The DBN provides wholesale lending, risk-sharing instruments such as partial credit guarantees, capacity-building programs, and MSME advisory services.

Since commencing operations in November 2017, the bank has onboarded 79 participating financial institutions and disbursed more than N1 trillion in funds to MSMEs nationwide.

Of the beneficiaries, approximately 74 per cent are women, while youth make up about 25 per cent. Notably, DBN has disbursed N49bn to over 69,000 MSMEs in economically disadvantaged regions, including Borno, Adamawa, Katsina, Yobe, and Zamfara states.

DBN’s aspirations for the next five years include issuing N500bn in guarantees to encourage financial institutions to lend to MSMEs and growing outstanding loans to N1tn. The bank also aims to crowd in an additional N1.3tn in new debt and equity capital from private sector investors.

It plans to disburse 30 per cent of loans to youth-led MSMEs and 40 per cent to women-led businesses, while targeting 15 per cent of loans to MSMEs in underdeveloped geopolitical zones.

DBN is committed to supporting the cumulative participation of 500,000 MSMEs in its training programs, catalysing the creation of 2 million new direct and indirect jobs, and achieving a cumulative profit before tax of around N300bn over the period.

The bank has received high commendations and awards for its performance and governance, including an “AAA” credit rating from Agusto & Co. and GCR, the highest rating for financial institutions on a global scale (Level Five SSCI accreditation), and recognition as the World Bank’s Best Project in Nigeria.