GTBank and Development Bank of Nigeria invest $70 million to boost Nigeria SMEs
In line with its long-term commitment to growing small and medium enterprises, African Financial Institution, Guaranty Trust Bank plc, is partnering with the Development Bank of Nigeria (DBN) to disburse N25billion, approximately $70 million, funding to entrepreneurs in Nigeria’s Micro, Small and Medium Enterprises (MSMEs) sector.
The funding is the single largest disbursement by the DBN to any financial Institution in Nigeria since it commenced operations.
The Development Bank of Nigeria (DBN) was set up by the Federal Government of Nigeria (FGN) as a wholesale development finance institution (DFI) to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.
In 2018, the DBN disbursed a total of N31.364billion to 35,000 end borrowers through Participating Financial Institutions (PFIs). This is expected to grow significantly following the N25billion funding partnership with GTBank due to the Bank’s focus on creating greater access to credit for small businesses.
GTBank has been at the forefront of driving innovative solutions and socio-economic initiatives that empower small businesses with the financing, resources and access to markets that they need to grow.
Among these are the Bank’s free business platforms, the GTBank Food and Drink Festival and the GTBank Fashion Weekend, through which it is accelerating growth for Small Businesses in Nigeria’s food and fashion industries.
The Bank also offers a wide range of low-interest loan products designed exclusively for MSMEs, and will be taking its support further with its partnership with the DBN.
Commenting on the partnership with the Development Bank of Nigeria, the Managing Director and Chief Executive Officer of Guaranty Trust Bank plc, Segun Agbaje, said; “Empowering Small and Medium Scale Enterprises is key to accelerating Nigeria’s economic growth and making the lives of millions of Nigerians better. This partnership with the Development Bank of Nigeria reflects our commitment to building a strong MSME sector buoyed by easy access to all of its financing needs.”
He further stated that, “As a Bank that is passionate about Promoting Enterprise, we will continue to provide innovative solutions and create global platforms that expand opportunities for small businesses to build capacity, grow revenue and connect with consumers and business experts from around the world.”
Guaranty Trust Bank Plc is regarded by industry watchers as one of the best run financial institutions across its subsidiary countries and serves as a role model within the financial service industry due to its bias for world-class corporate governance standards, excellent service quality, and innovation.
The Bank is also intervening in key economic sectors to strengthen small businesses and recently launched the GTBank Food Industry Credit and Fashion Industry Credit, unique loan products designed specifically for small businesses in the food and fashion industry, and offered at a repayment rate of 9 percent per annum.
