Nigeria: Government to set up SME bank

Mar 05, 2015

The Development Bank of Nigeria will launch next month.

Nigeria's federal government has revealed
that it is working to set up a bank
dedicated to small and medium-sized enterprises (SMEs).

Minister of finance Ngozi Okonjo-Iweala said the bank would be launched next month. "This administration is creating a bank called the 'Development Bank of Nigeria' that will allow people to borrow from five to seven years. It will help SMEs to access funding for a longer period of time, something they have never being able to do," she told Vanguard.

She added that the government wants to diversify Nigeria's economy so as to not depend on oil anymore.

This announcement comes a few weeks after eleven Nigerian banks partnered to improve SMEs' access to credit in the West African nation.

Access Bank, Diamond Bank, Ecobank Nigeria, Fidelity Bank, First Bank Nigeria, First City Monument Bank, Skye Bank, Stanbic IBTC, Standard Chartered and the United Bank for Africa are to collaborate on providing long-term loans to qualifying small businesses.ADNFCR-2976-ID-801778403-ADNFCR