The Development Bank of Nigeria (DBN) has not only been a financial catalyst for over 405,000 Micro, Small, and Medium Enterprises (MSMEs), disbursing over N734 billion in loans but is now advocating for a significant shift towards technology. Recognizing that mere financing is no longer sufficient, DBN aims to propel MSMEs into the digital era, fostering optimized operations and catalyzing economic development.
Statistics reveal that 67% of DBN’s loans went to women-owned businesses, and 24% supported enterprises owned by the youth. The impact has been profound, creating over 900,000 jobs within six years, with a substantial multiplier effect on economic activity and poverty reduction.
However, DBN acknowledges that the global business landscape demands more than financial support. The dramatic changes require businesses to transform through the adoption of new digital technologies. To underscore this, DBN’s 4th Annual Lecture Series, themed “A DIGITAL NIGERIA: Leveraging Technology to Improve Ease of Doing Business for MSMEs,” focused on strategies to technologically innovate and stay relevant in the current global space.
DBN, established in 2017, collaborates with International Finance Institutions to provide medium to long-term financing for Nigeria’s MSMEs. The bank emphasizes that its achievements go beyond financing, encompassing capacity building, mentorship, and a pivotal role in promoting financial inclusion. This multifaceted approach has helped integrate more Nigerians into the formal financial system, fostering economic activities.
With a clear understanding of the evolving business landscape, DBN urges MSMEs to adopt digital technologies actively. Shehu Yahaya, Chairman of DBN, stated, “DBN is committed to actively supporting MSMEs in adopting digital technologies through our financing initiatives and capacity-building programs.”
Nigeria currently ranks 131 out of 190 global economies in the World Bank’s Ease of Doing Business annual ratings. Embracing technology is seen as a catalyst to enhance the Ease of Doing Business, making it a critical determinant of a nation’s economic competitiveness and attractiveness to foreign investment.
Kashifu Abdullahi, Director-General of the National Information Technology Development Agency (NITDA), highlighted the importance of digitalization in driving sustainable economic growth and enhancing the ease of doing business for MSMEs. Abdullahi assured inclusivity in access to digital infrastructure, emphasizing the government’s commitment to an easy online business registration process and the creation of a legal framework to enable investments in digital public infrastructure.
DBN’s push for a Digital Nigeria aligns with the broader narrative that digital transformation reduces transaction costs, enhances flexibility, and opens new opportunities for income generation. MSMEs that resist technological advancements risk limitations in scalability, market reach, operational efficiency, profitability, and competitiveness.
As a key player in MSME financing and sustainable development, DBN aims to drive innovation, resilience, and profitability. The bank’s annual Techpreneur Summit serves as a platform to facilitate technopreneurship, enabling access to debt finance and educating businesses on various types of debt funding available.
In conclusion, DBN’s call for MSMEs to embrace technology is not just a strategic move but a necessity in navigating the evolving business landscape and contributing to Nigeria’s economic growth in a sustainable manner.
