The Development Bank of Nigeria (DBN) has issued more than N512bn in credit guarantees to over 100,000 Micro, Small and Medium Enterprises (MSMEs) across the country since 2019, deepening efforts to improve access to finance for small businesses facing credit challenges.
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The development finance institution disclosed this during a review of its operations up to December 2025, where it highlighted its performance in risk-sharing, MSME lending, job creation and financial inclusion.
Speaking in Lagos, the Managing Director of DBN, Dr Tony Okpanachi, said the guarantee programme has become one of the bank’s major tools for reducing lending risks for financial institutions while encouraging more credit flow to small businesses.
“Over N512bn guarantees have been issued to more than 100,000 MSMEs since 2019,” Okpanachi stated.
The guarantee scheme allows participating financial institutions to lend to MSMEs with reduced risk exposure, especially businesses that may not have sufficient collateral or long credit history required by traditional lenders.
For many Nigerian MSMEs, access to credit remains one of the biggest barriers to growth. Commercial banks often classify small businesses as high-risk borrowers, particularly businesses operating in agriculture, retail, manufacturing and underserved regions. Through its guarantees, DBN absorbs part of the lending risk, making it easier for financial institutions to support entrepreneurs.
The bank said the guarantees were issued through its participating financial institutions, which currently include 84 deposit money banks, microfinance banks, merchant banks and other financial institutions across Nigeria.
DBN noted that the intervention has supported businesses across different sectors of the economy while also helping to improve financial inclusion for women-led and youth-led enterprises.
According to the bank, women accounted for 77 per cent of beneficiaries reached through its interventions, while youths represented 28 per cent of total beneficiaries.
The institution also revealed that private sector loans to MSMEs accounted for about 20 to 25 per cent of lending to the segment over the last five years, showing increased participation by financial institutions in MSME financing.
In the 2025 financial year alone, DBN issued over N233bn in guarantees to more than 39,000 MSMEs nationwide. The bank said the guarantees formed part of broader interventions that supported over 289,000 end-beneficiary loans during the year.
The development finance institution explained that the guarantee programme is especially important in economically disadvantaged states where businesses struggle with financing constraints and lower investment levels.
According to DBN, more than N59bn was channelled to over 63,000 MSMEs operating in underserved regions in 2025 alone. These regions include states facing economic and security challenges where access to business financing remains limited.
Beyond guarantees, the bank has continued expanding its broader MSME support ecosystem through lending, technical assistance and entrepreneur training.
DBN disclosed that it has facilitated more than one million end-beneficiary loans since commencing operations in 2017, with total disbursements exceeding N1tn through participating financial institutions.
The bank also said over 52,000 MSMEs have received training across Nigeria as part of efforts to strengthen business management capacity and improve sustainability among small businesses.
To expand access to entrepreneurship training, DBN developed a Learning Management System that allows MSMEs to participate in business education and capacity-building programmes digitally.
The institution added that its interventions have contributed to the creation of more than 1.6 million jobs nationwide, while over 20 participating financial institutions benefited from its technical assistance programme.
Industry stakeholders have consistently identified access to affordable finance and business support as critical to the survival of Nigerian MSMEs, which contribute significantly to employment and economic activity.
DBN’s guarantee programme is expected to continue playing a major role in de-risking MSME lending as financial institutions become more cautious amid economic pressures, inflation and rising operating costs.
The bank also highlighted the activities of its wholly owned subsidiary, Impact Credit Guarantee Limited (ICGL), which was established in 2019 through a World Bank-supported initiative.
According to DBN, ICGL had guaranteed more than N500bn in loans and supported over 93,000 MSMEs and small corporations as of 2025.
The bank said the subsidiary was created to strengthen credit guarantee infrastructure in Nigeria and encourage increased lending to businesses considered high-risk by traditional lenders.
DBN further highlighted several institutional achievements, including maintaining a “Low” and “Stable” supervisory rating from the Central Bank of Nigeria (CBN) for four consecutive years.
The institution added that Agusto & Co. and GCR assigned it AAA credit ratings, reflecting strong financial performance, corporate governance and risk management standards.
Other recognitions received by the bank include the World Bank’s Best Project in Nigeria award, accreditation as a Green Climate Fund Direct Access Entity, and two Global SME Finance Awards from the SME Finance Forum.
Looking ahead, DBN said it plans to scale its impact further over the next five years by increasing guarantees issued to N500bn while expanding access to finance for more MSMEs nationwide.
“Our strategic intent over this period is to achieve scale,” Okpanachi said.
The bank also plans to mobilise N1.3tn in new debt and equity capital while ensuring that 30 per cent of loans support youth-led businesses and 40 per cent support women-led enterprises.
DBN added that it intends to increase lending to underserved regions, expand green financing initiatives and support the creation of two million new direct and indirect jobs over the next phase of operations.
The Development Bank of Nigeria was incorporated in September 2014 and received a wholesale development finance institution licence from the CBN in March 2017 before commencing operations in November 2017.
