As part of its contribution to resuscitate the Nigerian ailing economy, the KFW Development Bank has injected €25million into the Nigerian economy for the growth and development of Micro, Small and Medium Enterprises (MSMEs) and the renewable energy sector through the Development Bank of Nigeria (DBN).
Commenting on the development in Lagos, Managing Director/CEO of DBN, Mr. Tony Okpanachi, said that KFW has always been supportive to Nigeria economy in various sectors, this time, they’re keen to see that MSMEs and the energy sector in the country bounce back.
He said: “Today we just signed an agreement for the credit line of €25m provided by KFW to Development Bank of Nigeria to finance renewable energy and Micro, Small and Medium Enterprises (MSMEs). We are wholesale DFI poised to providing access to credit to Micro, Small and Medium Enterprises through wholesale lending to financial institutions and other Micro finance banks.
“We provide them with wholesale funds to onward lending to micro small and medium enterprises. As a core part of our mandate, we provide of course we partial credit guarantee, all our efforts are geared towards development and sustainable growth of our economy”
He added that DBN already has 65 financial institutions in line with green and renewable energy and businesses in Micro, small and medium enterprises, that relates directly with the small businesses to support them.
Okpanachi who expressed optimism added that there would be regular reporting feedback from the partners (financial institutions) when they draw the line.
He said they banks would decide because they bear the credit risks, however he auspiciously noted that the criteria and conditions to access credit would be seamless.
On his part, the Senior Portfolio Manager (Equity Investment/Funds- Sub Sahara Africa & Latin America) for KFW, Mr. Pierre Annutsch, said the financial institution would continue to offer support in diverse ways to the Nigerian economy.
“We just signed a credit line with DBN of €25m to support MSMEs and the energy efficiency/ renewable energy, and we believe it would go a long way to help the economy. We are not just giving the credit but we shall follow up in the process, ”he said.
