The Development Bank of Nigeria (DBN) and the African Development Bank (AfDB) have signed a $61 million gender-focused credit line to expand financing for women-owned businesses as part of efforts to improve access to funds and help more female entrepreneurs grow their enterprises.
The agreement was signed on the sidelines of DBN’s seventh Annual Lecture in Abuja where the development finance institution also launched a new initiative DBN Action for Women in Nigeria (DAWN) to combine financing with business support credit guarantees grants and market access for women entrepreneurs.
Speaking at the event DBN Managing Director and Chief Executive Officer Dr Tony Okpanachi said access to finance alone has not enabled enough women-led businesses to expand making it necessary to address other challenges they face.
‘DAWN is about moving gender-focused lending beyond intention and turning access into opportunity’ he said.
The initiative will support women-owned and women-led businesses through commercial banks microfinance institutions financial technology companies business aggregators cooperatives and direct channels.
Its priority sectors include agriculture and exports healthcare arts and creative industries technology and green businesses.
Under the programme beneficiaries are expected to access financing credit guarantees that help lenders manage risk technical assistance to prepare businesses for expansion results-based grants and connections to customers trade platforms and business associations.
The AfDB-DBN credit line is expected to strengthen the institutions’ efforts to make financing more accessible to women entrepreneurs. However the statements announcing the agreement did not provide details on its lending terms disbursement schedule or the number of businesses expected to benefit.
Beyond the gender-focused financing initiative DBN disclosed that it had disbursed a cumulative ?1.4 trillion to micro small and medium-sized enterprises (MSMEs) through 84 participating financial institutions as of December 2025.
The bank also reported that its interventions supported the creation of about 1.6 million jobs nationwide.
Okpanachi said the bank would expand its reach under a new five-year strategy targeting more than two million MSMEs with specific attention to women-led businesses youth-led enterprises and states where access to financing remained limited.
He said the bank’s work aimed to ensure economic reforms translated into practical benefits for business owners rather than remaining policies on paper.
‘The major reforms are now in place. How do we make sure their benefits reach the trader in Onitsha the fabricator in Aba the farmer in Kebbi and the young founder in Yaba?’ he asked.
He said the success of reforms should be judged by whether businesses could use the opportunities created by government policies to improve their operations and expand.
He said entrepreneurs need loans with repayment periods long enough to buy equipment and invest in their businesses. At the same time financial institutions must be willing to lend to viable enterprises that might otherwise struggle to get funding.
He also said business owners needed the skills and proper records required to manage their operations and demonstrate their capacity to grow.
DBN was established to address these challenges through a wholesale financing model under which it works mainly with participating financial institutions including commercial merchant and microfinance banks.
The bank provides longer-term funding that these institutions can lend to MSMEs. At the same time its subsidiary Impact Credit Guarantee Limited offers partial credit guarantees to reduce lenders’ risk when financing viable businesses.
It also provides capacity-building support to financial institutions and entrepreneurs including through its Entrepreneurship Training Programme.
Okpanachi urged Participating Financial Institutions (PFIs) to expand lending to underserved sectors and states arguing that broader access to credit was necessary to help more businesses benefit from economic reforms.
He called on policymakers and regulators to assess how their decisions affect enterprises. He urged entrepreneurs to formalise their businesses keep proper records and take advantage of available support programmes.
The DBN chief executive cited a national MSME survey conducted by the National Bureau of Statistics and the Small and Medium Enterprises Development Agency of Nigeria which found that small businesses account for close to half of the country’s gross domestic product and more than eight in every 10 jobs.
He said the sector’s importance meant policies that work for MSMEs would have a broad effect on Nigerians.
‘When reform works for MSMEs it works for most Nigerians’ he said.
At the lecture DBN also unveiled its MSME Data Assets an open data resource intended to help policymakers lenders and researchers make better-informed decisions about the sector.
The bank said the resource would provide a basis for evidence-driven decisions on MSME development. At the same time its newly launched Impact Report sets out the results of its financing interventions and areas where improvements are needed.
The three launches-DAWN the Impact Report and the MSME Data Assets-formed part of the bank’s seventh annual lecture themed ‘From Policy to Prosperity: Translating Economic Reforms into MSME Growth.’
The event brought together government officials regulators development partners financial institutions and entrepreneurs to discuss how economic reforms could improve business performance.
Representing the Secretary to the Government of the Federation Mrs Augusta Warrens Bekaredebo expressed optimism that the 2026 tax reforms would provide relief to many small businesses.
She said many enterprises could benefit from tax exemptions under the reforms adding that ‘a lot of businesses will be smiling’ by next year.