Former President Goodluck Jonathan officially launched the Development Bank of Nigeria with an initial capital base of $1.5 billion (approximately ₦300 billion), aiming to transform access to long-term financing for Micro, Small, and Medium Enterprises (MSMEs) across the country.
Designed to provide medium- to long-term loans with tenors of up to 10 years and grace periods extending to 18 months, the bank is expected to address one of the major challenges confronting Nigeria’s small businesses—limited access to affordable credit.
The initiative is supported by several global development institutions, including the African Development Bank, the World Bank, Agence Française de Développement, and Germany’s KfW Entwicklungsbank.
According to government projections, the Development Bank is expected to help create up to one million direct jobs, with each MSME potentially generating five additional employment opportunities.
Finance Minister at the time, Dr. Ngozi Okonjo-Iweala, emphasized the significance of the initiative for financial inclusion and sustainable economic growth. She announced that an estimated 20,000 beneficiaries would receive loans in the bank’s first year of operation.
“I share in the President’s belief that the most meaningful legacy a government can offer is breaking the persistent barrier that prevents small businesses from thriving,” she stated. “This bank is more than a financial institution—it is a bridge to economic empowerment.”
She highlighted that the bank’s approach to lending was carefully structured to avoid burdening entrepreneurs, allowing them to build viable businesses while still maintaining a reasonable standard of living.
“Access to credit shouldn’t come at the cost of a business’s survival. This bank offers funding that empowers rather than restricts—support that enables dreams to become tangible, successful ventures,” Okonjo-Iweala added.
By supporting small businesses with long-term capital, the Development Bank of Nigeria is envisioned as a cornerstone for inclusive growth, helping to unlock entrepreneurship, reduce unemployment, and stimulate broader economic development.
