Business Nigeria Plans $10bn Development Bank



As part of measures to fill the business lending gap in the country, the Federal Government of Nigeria is planning to establish the Development Bank of Nigeria in the next six to nine months.

Disclosing this to #Bloomberg, Minister of Finance, Dr. Ngozi Okonjo-Iweala, said: “It’s very difficult for business people, especially those in small and medium-sized enterprises, to find any money for five years, seven years,” she said.

“Mostly they can borrow for a year to three years. If you want to build a business sustainably and you want your economy to have sustained growth, you’ve got to fix access to finance.”

According to her, the bank would initially be capitalised with $2bn, and might later rise to as much as $10bn.

The development bank will also be partly financed by the Federal Government, and is also due to receive $500m each from the World Bank and the African Development Bank, and a credit line from the German development bank, KfW Group, she said.

#Nigeria #Okonjo-Iweala