Muhammad Labbo, Abuja: The Buhari Media Support Group (BMSG) has described the planned commencement of the operations of the Development Bank of Nigeria (DBN) as a demonstration of President Muhammadu Buhari’s resolve to complete laudable national projects that were abandoned by past administrations.
The group in a statement signed by its Chairman, Malam Muhammad Labbo and its Secretary, Chief Cassidy Madueke said: “We recall that DBN was conceived way back in 2014 at a time Nigeria was literally swimming in petrodollar but it turned out that the government of that period lacked the will, capacity and creative imagination to nurture the idea to reality,” the Group said’’.
The statement which was issued today in Abuja also said that the “assured take off of the bank has further lent credence to Buhari’s administration’s capabilities in identifying and resurrecting strategic projects abandoned by past governments, adding value to them before approving the implementation which is aimed advancing national wellbeing.
“We recall that DBN was conceived way back in 2014 at a time Nigeria was literally swimming in petrodollar but it turned out that the government of that period lacked the will, capacity and creative imagination to nurture the idea to reality,” the Group notes in its statement.
“Now that the bank which is principally established to cater for the funding needs of Micro, Small and Medium enterprises (MSMEs) have been capitalized to $1.3billion (N396.5billion) and its complement of Management staff fully recruited and the application for banking license submitted to the Central Bank of Nigeria, BMSG is convinced that better days are ahead for all Nigerians.
“The bright days are ahead for Nigerians with the takeoff of the DBN. It is certain that functional business ideas generated by micro, small and medium entrepreneurs will be frustrated to extinction or abandoned for lack of cheap and long tenure funding,” BMSG said.
The statement explained that with the DBN, Micro, Small and Medium Enterprises (MSMEs) which historically had been responsible for more than 50 per cent of productive contributions to the country’s GDP, would have an official pivot to drive a new industrialisation momentum that would result in higher productivity and creation of employment opportunities.
Being a wholesale financial institution, BMSG said that DBN would increase financial access for MSMEs through eligible financial intermediaries that would receive and dispense funds from it.
BMSG also commended the Federal Government for giving assurances that the operations of DBN would not result in the elimination of the Bank of Industry (BOI), Bank of Agriculture (BOA) or any other existing development bank since its operations would be distinct from other development banks.
The group said that one of the features that stood DBN out from similar institutions lay in its ability to provide loans to all sectors of the economy including, manufacturing, services and other industries not currently served by existing development banks.
BMSG noted that the additional capital to be provided by DBN would further reduce borrowing rates just as the longer tenure of its loans would provide the required flexibility in the management of cash flows thereby giving businesses the opportunity to make capital improvements and acquire equipment or supplies.