Development Bank of Nigeria (DBN) said it will provide up to 20,000 new loans to small firms in its first year of activity. This aims to facilitate access to credit in Nigeria, according to the lender’s chief executive, Tony Okpanachi.

“The focus is on new loans. We know agriculture is a focus area, we will encourage that. We know other small industries. We would also try to encourage those sectors that will give maximum impact to the economy,” Okpanachi said.  

The executive added that his institution will grant loans of up to 12 years’ maturity at rates lower than existing development banks, to enable financing of new projects which would not be viable with short-term funds. The bank which recently obtained its license is to start lending in August with an initial capital of $1.3 billion. Its initial investors are the Nigerian government, African Development Bank, European Investment Bank, the World Bank and KfW.

The DBN was established to support small and medium enterprises in Nigeria which make up to 60% of the economy.