By Franklin Alli

Manufacturers Association of Nigeria and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture arms of the Organised Private Sector, OPS, have called for the take off of the SMEs Development Bank of Nigeria (DBN) without further delay. Vanguard learned that since the Bank with $1 billion capital base was inaugurated last year by the Federal Government to cater for the credit needs of manufacturers in the micro, Small and Medium Enterprises (MSMEs) sectors of the economy, it has neither office nor Board of directors.

Dr. Frank Jacobs, President, MAN, said it was high time for government to revisit it and make it to function like the Bank of Agriculture, BOA, and Bank of Industry, BOI. Chief Bassey Edem, National President, NACCIMA also said: “The take-off should not be delay considering the importance of the bank.

According to him, the establishment of the development bank for SMEs is long overdue and a step in right direction as long as government ensures that the set objectives are achieved.

The NACCIMA boss said that the capital base for the bank should be measurable to global standard of such a bank and must be able to give facilities to SMEs at a single digit interest rate for it to have the desired impact on both the citizenry and the national economy. “The bank when operational will not duplicate the role of BoI, rather it is complementing it, enhancing the economic agenda of government and making access to funds by small entrepreneurs less stressful,” he stated.

Recall that the former Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, had during the launch of the Development Bank of Nigeria, said when it is on ground, the bank will help Small and Medium Enterprises (SMEs) to access funding for a longer period of time, something they have never being able to do.

“The bank will assist small scale business owners to access funds for a longer tenure of between five to seven years. She noted that many people with business ideas could not access funds and in cases where they are fortunate to access funds they will be asked to start paying back after a year knowing well that businesses take between two to three years to stabilize, lamenting that many business owners have not been able to march the timing of the loan they get with the timing of their investments,” she stated.

Reacting to the development, Rasheed Olaoluwa, Managing Director BOI, said: “DBN is welcome; it has been launched. I don’t think they have any office yet and I am not aware of any MD appointment. Again, we keep our fingers crossed.”