KFW Development Bank has injected €25 million into the Nigerian economy for the growth and development of micro, small and medium enterprises (MSMEs) and the renewable energy sector through the Development Bank of Nigeria (DBN) Plc.
The gesture is part of its contribution to resuscitate the Nigerian ailing economy and to bounce the energy sector back, according to TheGuardian.
Commenting on the development at the DBN Office in Lagos, Managing Director/CEO of DBN, Tony Okpanachi, said DBN already has 65 financial institutions in line with green and renewable energy and businesses in MSMEs that relate directly with the small businesses to support them.
According to him, the bank would do monitoring and evaluation of the process.
“By the time we provide them with the Line and they come to draw on the line, we will know which customers they are lending to directly, we sit down with customers and discuss and find out how they utilise the funds and how it has impacted their businesses. We are not just disbursing funds to our financing partners and relaxing, we shall monitor them throughout the process.
The ultimate end is the impact on them and the economy,” he said. The banker expressed optimism about the funding, saying there would be regular reporting feedback from the partners (financial institutions) when they draw the line.
As for cost, he said the banks would decide because they bear the credit risks. However, he noted that the criteria and conditions to access credit would be seamless.
“This is an interesting time for MSMEs because they are the bedrock of every economy. With this credit, they would expand businesses, create jobs and boost our GDP. We are not unmindful of the harsh economic environment and that is why in DBN we create access to funds in different areas, so we push for moratoriums, for longer tenures for MSMEs to ensure that their businesses can mature and stay stable before they’re able to pay,” he noted.
On his part, the Senior Portfolio Manager (Equity Investment/Funds, sub-Sahara Africa and Latin America) for KFW, Pierre Annutsch, said the financial institution would continue to offer support in diverse ways to the Nigerian economy.