Since it opened its doors for operations, the Development Bank of Nigeria (DBN) has channeled more than N1 trillion ($735 million) into the hands of over one million micro, small, and medium enterprises. This capital injection has helped sustain and create more than 1.6 million jobs across the country, according to details shared by Managing Director Tony Okpanachi.

The state-backed institution, which received its license in 2017, was established specifically to solve the funding bottlenecks that choke small businesses by providing long-term loans, credit guarantees, and technical training through local commercial lenders and microfinance banks. These small firms are widely considered the economic engine of Nigeria, yet they routinely struggle to secure traditional financing.

Bank strategy aims for 2 million jobs

Looking ahead, Okpanachi outlined a new corporate strategy where the development lender aims to manage an outstanding loan portfolio of N1 trillion ($735 million) while issuing N500 billion ($367.6 million) in credit guarantees. Over the next five years, DBN intends to back more than two million small enterprises and spark the creation of two million direct and indirect jobs by reaching deeper into underserved communities.

To fund this expansion, Okpanachi said the institution plans to raise N1.3 trillion ($955 million) in debt and equity capital over the five-year period. The bank currently distributes its financial support through an institutional network of 84 participating financial institutions, a mix that includes commercial lenders, microfinance banks, merchant banks, and other development finance entities.

A clear picture of where this money goes emerged during the briefing, showing a strong focus on female entrepreneurs, who made up 77 percent of all loan beneficiaries to date. Young business owners led another 28 percent of the funded enterprises. Capital has also been pointed toward regions hit by economic hardship and security challenges, with N108 billion distributed to more than 132,000 small businesses in vulnerable states including Borno, Adamawa, Katsina, Yobe, and Zamfara.

Strategic capital shift toward female founders

During the 2025 financial year alone, the institution disbursed more than N358 billion ($263.2 million) to over 289,000 small enterprises while adding five new local banks to its distribution network. Meanwhile, its specialized credit guarantee subsidiary, ICGL, has backed loans worth more than N500 billion since its inception, protecting over 93,000 small businesses through 130,000 individual guarantees and protecting more than 203,000 jobs.

To strengthen these guarantee operations, ICGL has secured international backing through partnerships with global institutions like the African Development Bank and the European Investment Bank. DBN’s upcoming five-year roadmap earmarks 40 percent of future lending specifically for women-led businesses, 30 percent for youth-owned companies, and 15 percent for small firms operating in underfunded geopolitical zones and priority states.

These targets follow a recent cash injection on May 9, when the institution secured a $61 million financing package dedicated to expanding affordable credit for female business owners, with more than 95 percent of that specific facility locked in for women. This ties into an earlier 2025 announcement detailing a broader ambition to push the bank’s total outstanding loan portfolio to more than N1.8 trillion ($1.32 billion) over the long term.