Taiye Olaiyemi

The Development Bank of Nigeria (DBN) says it is expanding its support for Micro, Small, and Medium Enterprises (MSMEs) by growing its outstanding loan portfolio to over N1.8 trillion.

Its Managing Director, Mr Tony Okpanachi, told newsmen in Lagos that the move aligns with the bank’s five-year strategic plan, meant to further drive economic development as job creation across Nigeria.

To ensure this increase in lending, he said that DBN was working to attract N3 trillion in debt and equity.

According to him, this funding initiative will empower the bank to provide financial resources to a greater number of MSMEs, a vital sector for economic growth and job creation in the country.

“We want to scale up what we see, what we did the first five years, the next five years, how do we scale up? And that’s a major thing for us.

“We believe that, in Nigeria, there’s still a lot more to be done. So, we are very aspirational in terms of what we need to do,” he said.

The managing director noted that beyond the expansion of its loan portfolio and funding, DBN’s strategic objectives include a strong emphasis on inclusive growth.

He added that the bank aims for 20 per cent of its lending to support women-led businesses and 40 per cent to benefit businesses owned by the poor.

Okpanachi explained that DBN was also prioritising the growth of green financing and increasing its focus on supporting enterprises in underdeveloped states.

He noted that the plan was to facilitate an additional 800,000 jobs, making a creation of two million over the next five years.

The DBN boss explained, “In terms of job creation, last year, remember, last six years, I told you, we’ve done about 1.2 million.

“We want to do at least two million in terms of job creation. That means both direct and indirect job creation.

“Along the profitability side, of course, we want to be financially sustainable. So we’re not taking our eyes off financial sustainability.”

Emphasising the bank’s role as a wholesale lender, the DBN boss clarified that the new target was not cumulative but represented a fresh drive to catalyse growth across various sectors.

He said that DBN continued to expand its funding sources, by deepening relationships with existing partners and seeking new collaborations to increase both debt and equity.

He highlighted ongoing discussions with various international partners and its plans to tap into local capital markets through a bond programme, with the first phase contingent on favourable macroeconomic conditions.

Given the bank’s role as a long-term lender, Okpanachi said, “Strategically, we have to first expand our sources of funding. Two, dip in with the existing ones. How can we get more? Three, how can we use existing ones to catalyse additional ones?” he noted.

He emphasised a deliberate focus on labour-intensive sectors such as manufacturing and agriculture, noting that they promise significant employment generation.

“This strategic move involves consciously favouring sectors that employ more people over those that are heavily reliant on technology.

“You see, sectors like manufacturing, sectors that are labour-intensive, agriculture, all those areas, they provide more jobs.

“So we’re consciously looking at what we find in those sectors that are more labour-intensive,” Okpanachi added. (NAN)(www.nannews.ng)

Edited by Olawunmi Ashafa

By Martha Agas

The Chinese Ambassador to Nigeria, Yu Dunhai, has revealed that plans are underway to establish electric vehicle factories and other manufacturing ventures in Nigeria.

Dunhai disclosed this to the Minister of Solid Minerals, Dr Dele Alake at a recent bilateral meeting.

Alake’s Special Assistant on Media, Segun Tomori, said the ambassador stressed the need for greater collaboration between China and Nigeria to unlock the potential of Nigeria’s solid minerals sector by establishing electric vehicle factories.

According to him, the ambassador expressed support for Nigeria’s local value-addition policy, pointing out that one of President Xi Jinping’s key priorities is hinged on promoting Africa’s industrialisation.

Dunhai stated that the leaders of Nigeria and China agreed to elevate bilateral relations to a comprehensive strategic partnership aimed at creating new opportunities for cooperation.

He recalled that President Bola Tinubu and Jinping, recently held high-level talks during Tinubu’s state visit to China in pursuit of that goal.

Tomori quoted him saying “Chinese companies were already deeply involved in Nigeria’s mining sector, from exploration to processing.

“We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals,” the ambassador stated.

In response to concerns raised by the solid minerals minister, over the actions of a few operators tarnishing China’s image, the ambassador stated that the embassy and Chinese government had consistently advocated compliance with regulations.

He said that Chinese companies operating in Nigeria had been admonished by their government to abide by the country’s rules and regulations.

He added that the companies were also urged to implement the required Corporate Social Responsibility initiatives and adhere to environmental and safety standards.

According to Tomori, the ambassador stressed that Chinese authorities have zero tolerance for illegal mining, and are ready to partner with the Nigerian government to bring suspected culprits to justice.

On his part, Alake stated that Nigeria has a large market and the potential to reduce its reliance on fossil fuels through electric vehicle production.

He acknowledged the long-standing relations between Nigeria and China, stating that most Chinese firms operated within legal and regulatory frameworks.

He, however, expressed concerns over the actions of a few operators, stating that legal actions were being taken to address such situations.

“We have taken action against illegal operators, including some Chinese nationals. While isolated, such incidents undermine the good work of many compliant Chinese firms.

“We need your cooperation in ensuring that such culprits are brought to justice.”

The minister reiterated that Nigeria is open to business to serious investors, stating that investments in the nation’s mining industry remained focused on local value addition.

“We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries,” he said. (NAN)(www.nannews.ng)

Edited by Chioma Ugboma