(Ecofin Agency) - African Development Bank (AfDB) has finalized a $50 million equity participation investment in the Development Bank of Nigeria (DBN), a financial institution currently being established in Nigeria.

In addition to this commitment from the AfDB, the bank received a 20 million equity contribution from the European Investment Bank, bringing the overall amount to $70 million. The resource will be used to finance the country’s SMEs which constitute DBN’s main target.

“The new institution builds on international experience and uses a business model that has demonstrated proven success to enhance private-sector investment across Africa and around the world where other financing options are inadequate or absent,”  Tony Okpanachi (photo), DBN’s MD said.

Ketil Karlsen, head of EU’s delegation in Nigeria and the economic community of West African States (ECOWAS), said that the fund was made available to the Development Bank of Nigeria to help SMEs to boost growth and jobs creation, especially for young people.

Chamberline Moko