The Development Bank of Nigeria (DBN), on Wednesday, signed an agreement with the French Development Agency –
Agence Française de Développement (AFD) – for a €50 million line of credit to support women-owned businesses in Nigeria.
The main objectives include to support the development of women entrepreneurship and empowerment
as well as job creation; strengthen access to finance and build capacity of women MSMEs; and enhance the integration of gender within DBN and its partner financial institutions (PFls).
Part of the programme also includes an additional technical assistance programme of €825 000.
At the brief signing event in Abuja, Tony Okpanchi, DBN’s MD/CEO, said the facility will upscale the bank’s effort at particularly lifting women businesses from micro to large scale enterprises, with wider implications for the economy.
Okpanachi noted that the bank is motivated to negotiate the specialised facility due to the difficulties which Nigerian women businesses face in accessing funds.
Till date, 74 percent on DBN’s on-lending has gone to women businesses because of their catalytic impact in the economy.
He also noted that the programme has the capacity to catalyse additional financing from other development partners.
He recalled that the DBN has had a long, interesting partnership with the French development bank, being one of the pioneer funders of the bank, and has, since seven years of set-up, been of help in providing technical and other necessary assistance.
He assured that the bank would ensure a good geographical spread of the funds, leveraging its over 70 Participating Financial Institutions (PFIs) across the country.
“DBN is seven years old, but the partnership with AFD has been really strong. And this extra funding is in continuation of that partnership, ” Okpanachi stated.
He said women entrepreneurs play a very strong role in DBN’s focus areas based on the belief that empowering them would positively impact the nation due to the catalytic effect.
“This is huge and I must commend the French and AFD for this additional support.”
In his remarks, Xavier Muron, country director, AFD, corroborated that women entrepreneurship is not only a question of social justice but also a strategic priority to build a more inclusive and resilient society.
He stressed that women economic empowerment is even key to achieving some Sustainable Development Goals, noting that they are constrained despite their potential and creativity.
In 2020, some studies indicated that 40 percent of Nigerian women were excluded from the financial systems.
“This is why, together, we must make women entrepreneurship not an exception, but a norm, and allow every woman to exploit her full potential.”
On the choice of partnership with DBN, Muron explained that,
“As a well-established development bank, DBN was therefore the obvious and strategic partner to drive this transformative gender agenda within the financial sector in Nigeria and support the financing of women MSMEs.”
According to him, the initiative also resonates with the current 16 days of activism against gender-based violence by addressing the root causes.
Also speaking, Marc Fonbaustier, French ambassador to Nigeria, called the credit line a game changer and fits into the top priorities shared by both countries.
“We believe that the more women will grow and scale up in the social ladder, with more autonomy, income, capabilities, the better the society,” he stated.
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