New state-backed bank in Nigeria aims to extend 20,000 loans in first year
Abuja — The Development Bank of Nigeria, a new state-backed lender, aims to offer up to 20,000 new loans to small firms within its first year of operation as part of efforts to help unlock credit to the recession-hit economy, its CEO, Tony Okpanachi, says. Africa’s biggest economy is in its second year of a downturn brought on by low prices for oil, the country’s main export, which has slashed government revenues and hammered the naira currency. Many businesses have had to shut down or lay off workers to survive. The new development bank — modelled on Germany’s KfW — will lend to local commercial banks and microfinance institutions that will then offer loans to small firms, helping boost economic growth and jobs. Small-scale enterprises make up 60% of Nigeria’s economy. Okpanachi said the bank would grant loans of up to 12 years’ maturity, longer than usual for the West African country, to enable the financing of new projects that would not be viable with short-term funds and in dol...
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