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DBN releases N631 billion for MSMEs and resumes dividend payments.

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More than N 631 billion in loans from the Development Bank of Nigeria (DBN) have been given to MSMEs across the nation.

At the bank’s annual general meeting yesterday in Abuja, managing director Dr. Tony Okpanachi revealed this in the bank’s 2022 financial report.

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According to him, the loan disbursement record reflected a significant increase of 31% from the N482 billion disbursed in the prior year as of the Financial Year’s conclusion on December 31, 2022.

In his own words, “Over the past five years of DBN’s activities, the bank has been at the vanguard of growth, acting as a focal and catalytic role in easing financing constraints for Nigeria’s underserved MSMEs.

By the end of December 2022, the DBN had distributed more than N531 billion to just over 313,000 MSMEs nationwide, up from N482 billion to more than 208, 000 MSMEs at the end of the previous year.

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“This suggests a 30% increase in financing support and a 50% increase in MSMEs impacted.”

Dr. Okpanachi praised the performance in the reviewed year, despite the challenging circumstances both locally and globally.

52.8% of the overall loan portfolio was made up of trade and commerce, followed by manufacturing (13.5%), agriculture, forestry, and fisheries (5.7%), and oil & gas (4.9%).

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2023 outlook

According to the MD of the bank, “the bank remains focused on financial sustainability, while providing essential financing to the MSME sector,” as it looks ahead to the firm’s operational year of 2023.

As a result, the bank declared a dividend of N3. 418 billion, or 25% of its retained earnings for the fiscal year that concluded on December 31, 2022 (profit after tax and transfers from statutory reserves).

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Federal government and institutional investors received N34.18 per share as shareholders.

 

 

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