Development Bank of Nigeria (DBN) Plc, recently hosted its second Micro, Small, and Medium Scale Enterprises (MSMEs) summit in Kano, in line with its mandate to provide access to finance to small businesses in the country.
The summit, themed: The Role of Development Bank in Inclusive Financing, was attended by MSMEs in Kano and across the north-western region as well as government agencies and stakeholders across sectors including traditional rulers.
In his opening remarks, the Managing Director/CEO, DBN, Tony Okpanachi, highlighted the importance of the MSMEs to the socio-economic development of the region and the country.
He said: “It has become imperative for us to pull resources together and channel collaborative efforts towards building the capacity of the MSMEs as a way of revitalizing their operations to address the challenge of access to finance. This will guarantee their growth and boost the economic potentials of this critical sub-sector.”
“The summit is one of DBN’s stakeholder engagement strategies aimed at creating awareness around our mandate of providing access to finance, capacity building, and partial credit guarantees to the MSMEs in Nigeria. This is important because they play a crucial role in accelerating economic growth through poverty alleviation, job, and wealth creation.”
“According to the Nigeria Bureau of Statistics, small and medium-scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP (Gross Domestic Product) in the last five years. With a total number of about 17.4 million, they account for about 50% of industrial jobs and nearly 90% of the manufacturing sector.”
DBN will continue to work towards building the capacity of MSMEs, eliminating the financing constraints faced by this sector of the economy and transforming them into instruments of positive and sustained change.
He continued: “Though significant growth has been achieved in the MSME sector, there is still much to be done. Kano plays a major economic role in the northern business terrain and the challenges that MSMEs have to contend with are not different from those faced internationally.
“They include access to finance, value chains, and markets. A PwC report in 2020 identified obtaining finance, finding customers, and infrastructure deficits as the most pressing problems of MSMEs in Nigeria. It is therefore pertinent for us as a Bank to champion the conversation on how MSMEs can win despite these challenges, by exposing ways through which MSMEs can benefit from our sustainable financial offerings.”
“Hosting this event in Kano is apt as it will help us better understand the financial constraints faced by MSMEs in the state. DBN will continue to work towards building the capacity of MSMEs, eliminating the financing constraints faced by this sector of the economy and transforming them into instruments of positive and sustained change.”
Industrial growth
Kano State Governor, Abdullahi Umar Ganduje, in his goodwill message said the summit coincides with the Kano State Development Plan, aimed at accelerating industrial growth and to provide an enabling environment for commerce to thrive and for the economy to grow.
Represented by the Head of Service, Usman Bala Mohammed, he further urged entrepreneurs to take full advantage of the summit to seek solutions to their business challenges.
In his keynote address, the CEO, Dantata Foods, Tajudeen Dantata, said: “For us to discuss inclusive financing, we must recognize the important role of the MSMEs as key players in the Nigerian economy, the role of the DBN working in conjunction with their participating financial institutions in addressing the financial constraints faced by the MSMEs.”
He stressed the need for synergies between the financial and the MSME ecosystem as a key factor to addressing sustainable funding challenges faced by entrepreneurs.
He tasked DBN to provide financial inclusion leadership needed in the region by initiating tailored funding solutions that takes cognizance of the peculiarity of the region, to complement the efforts of the Central Bank of Nigeria (CBN).
