The Development Bank of Nigeria Plc (DBN) has secured a €40m line of credit from the Arab Bank for Economic Development in Africa to enhance lending to micro, small and medium-sized enterprises (MSMEs) and deepen financial inclusion across the country.
The agreement was signed on the sidelines of the IMF–World Bank Spring Meetings in Washington on Wednesday, underscoring growing collaboration among development finance institutions to support vulnerable economies amid tightening global financial conditions.
Under the arrangement, the facility will be channelled through eligible financial institutions, enabling them to extend longer-tenor loans to small businesses. MSMEs remain central to Nigeria’s economic framework, contributing significantly to job creation and economic diversification.
However, access to affordable credit continues to constrain growth in the sector, as high interest rates and risk-averse lending practices by commercial banks limit expansion opportunities for smaller firms.
Speaking during the signing ceremony, BADEA’s representative, Abdullah Almusaibeeh, said the partnership reflects the institution’s commitment to inclusive, private sector-led growth across Africa.
He noted, “Strengthening DBN’s capacity to reach MSMEs, particularly women-owned and youth-led enterprises, will help unlock productive investment and expand economic opportunities.”
Nigeria has increasingly turned to development finance partnerships to bridge funding gaps, especially in the face of global shocks, including the COVID-19 pandemic and geopolitical tensions, which have tightened liquidity and increased debt pressures across emerging markets.
DBN operates as a wholesale lender, providing financing and credit guarantees to commercial banks and other financial institutions, which in turn on-lend to businesses.
The new credit facility is expected to support lending across key sectors such as agriculture, manufacturing, energy, education and technology. These sectors are considered critical to reducing Nigeria’s dependence on oil revenues and promoting a more diversified economic base.
DBN’s Managing Director, Tony Okpanachi, described the agreement as a significant milestone in the bank’s collaboration with BADEA.
According to him, “The funding will strengthen our capacity to expand access to finance for MSMEs, especially women- and youth-led enterprises, while driving job creation and sustainable economic growth.”
A major focus of the programme will be improving credit access for underserved groups, particularly female entrepreneurs and young business owners, who often face greater barriers in securing financing.
DBN estimates that a substantial portion of its existing loan portfolio already supports youth-led enterprises, reflecting Nigeria’s youthful population and growing entrepreneurial drive.
The deal also signals BADEA’s broader strategy to deepen its footprint across sub-Saharan Africa, with increased support for infrastructure, industrialisation and private sector competitiveness.
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