The European Investment Bank (EIB) and the African Development Bank (AfDB) have offered US $70 million support for Development Bank of Nigeria (DBN) to strengthen lending for business and agriculture investments in the country.
EIB has finalized a US $20-million equity stake in the new financing institution, alongside US $50-million equity participation from the African Development Bank, according to a statement from the European Union Delegation to Nigeria.
The statement quoted the Vice-President of EIB, Ambroise Fayolle, as saying that the bank is pleased to support the new Development Bank of Nigeria to strengthen private-sector investment in Africa’s largest economy.
“We look forward to continued close cooperation with Nigerian and international partners to ensure that once fully operational the new Development Bank of Nigeria can help harness the country’s economic potential,” Fayolle added.
AfDB’s Director of the Financial Sector Development Department, Stefan Nalletamby, noted that shortage of investment finance is among the central issues affecting the performance of private sector businesses in Nigeria.
“The Development Bank of Nigeria is expected to contribute to mobilizing significant long-term financing to an important yet underserved sector with high development potential,” said Nalletamby.
The new backing for the DBN by both EIB and AfDB will help in tackling lack of access to credit by entrepreneurs and businesses across the country, the EU delegation said.
“With more investment, we hope to promote a vibrant economy and stimulate growth, employment and increase opportunities, especially for youth,” said Ambassador Ketil Karlsen, Head of the EU Delegation to Nigeria and ECOWAS.
According to the Managing Director of DBN, Tony Okpanachi, it’s ambition is strengthened by the financial and technical support of international partners, including the European Investment Bank and African Development Bank.
Other international financial institutions including the World Bank, Germany’s KfW and the French Agence Française de Développement (AFD) will also support the new bank alongside backing from the Federal Government of Nigeria.
