Opinion

Redefining Financial Institutions For A More Virile Activities To Drive Nigeria Economy Through DBN

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Developement Bank of Nigeria DBN, had being at the forefront of providing financial succour not only to the MSME’s, both float and liquidity to keep the financial institutions,Micro Finance Banks (MFB’s), Development financial institutions (DFI’s),that are participating financial institutions (PFI’s),and serves as intermediaries.

This is at the backdrop of liquidity crises, Mismanagement, diversion and some unethical practices that had precluded the smooth running of the financial institutions in Nigeria over the years.

DBN through due dilligence revived and engaged financial institutions, MFB’s and DFI’s that were already facing both image crises, liquidity and operational shortcomings towards meeting the the demands of it’s customers.

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These image re-engineering and wholistic refocusing of the financial institutions and others embarked through the patronage of DBN, had bounced back the activities of the money Banks from the precipice.

The DBN through a well articulated acts and conditions of engagement and participation of Banks,had ensured more robust economic activities with a renewed boost in the country.

The restoration of confidence by the DBN to financial institutions/others had on a long run relive the activities of the commercial/financial institutions, bedeviled with all round economic crises, by extension to Nigeria.

Worst hit was the MFB’s ,that had hitherto served as conduit pipe to both the operators,managers and customers,this led to the clampdown on many of the Microfinance institutions,that acted as the stable of SME activities, both at the rural and urban areas,the stable of any thriving economy.

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With the intervention of DBN and a clear cut policy of engagements both as mediator to the Banks, MFB’s,DFI’s and it’s beneficiaries of MSME’s program, brought about restoration of operational confidence that rejigged the smooth operation of the Nigeria economy amidst recession, was achievable.

As precondition to availement and draw down, DBN has made it mandatory that would be beneficiaries is expected to hold an existing Bank accounts with either commercial, MFB’s Developement Finance Institutions DFI’s and other financial institutions.

DBN as a robust developement financial institution operating in line with the global practices, allows the money Banks to engage applicants of MSME’s loan directly through assessment, availement and repayment.

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With a flexible repayment period of ten years including moratorium of 18 months, DBN funds assessment through it’s windows is more liberal and accessible taken congnisance of the activities of the participants.

These, DBN is doing through a reasonable and affordable interest rates that trigger mass participation in the economic activities to sustain the MSME’s and by extension Nigeria economy.

Written by Abubakar Yusuf