The World Bank has revealed that over the course of six years, a staggering 321,867 small businesses in Nigeria benefited from an impressive $1.4 billion in funding. This eye-opening disclosure was made in the World Bank’s recent report, ‘Tackling Access to Finance for Micro, Small, and Medium Enterprises’.
Notably, the Development Bank of Nigeria spearheaded the distribution of these funds to small enterprises. Moreover, the report highlighted that 66 percent of the beneficiary businesses were owned by women, and 12 percent represented first-time borrowers.
Understandably, the World Bank acknowledged the persistent challenge of accessing finance faced by small businesses in Nigeria, despite their pivotal role in driving the nation’s economy. In their own words, “The DBN has earned a reputation for being even-handed, highly responsive, and innovative among its 28 Partner financial institutions. Key project achievements include wholesale funding to PFIs amounting to the naira equivalent of $1.4bn, on-lending to 321,867 MSMEs, of which 66 per cent are women-owned, and 12 per cent are first-time borrowers”.
This revelation underscores the critical significance of fostering financial support for small businesses, paving the way for greater inclusivity and economic empowerment. It also sheds light on the indispensable role played by the Development Bank of Nigeria in propelling the growth of small enterprises, particularly those owned by women and budding entrepreneurs.
The World Bank’s report serves as a poignant reminder of the vital need to address the persistent financial challenges faced by small businesses in Nigeria. It also underscores the immense potential that lies within these enterprises to power the nation’s economic growth and foster greater gender equality in the entrepreneurial landscape.
