Guaranty Trust Bank plc, has announced a N25 billion disbursement plan targeted at supporting the country’s Micro, Small and Medium Enterprises (MSMEs) and facilitated by its partnership with the Development Bank of Nigeria (DBN).
According to the commercial lender, the funding, which is in line with its long-term commitment to growing small and medium enterprises, is the single largest disbursement by the DBN to any financial Institution in Nigeria since it commenced operations.
It will be recalled that in a bid to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria, the Federal Government of Nigeria (FGN) set up the development Bank of Nigeria (DBN).
A total of N31.364billion to 35,000 end borrowers through Participating Financial Institutions (PFIs), was disbursed in 2018, alone, and according to GTBank, this is expected to grow significantly following the N25billion funding partnership and as a result of the Bank’s focus on creating greater access to credit for small businesses.
Commenting on the partnership with the Development Bank of Nigeria, the Managing Director and Chief Executive Officer of Guaranty Trust Bank plc, Segun Agbaje, said; “Empowering Small and Medium Scale Enterprises is key to accelerating Nigeria’s economic growth and making the lives of millions of Nigerians better. This partnership with the Development Bank of Nigeria reflects our commitment to building a strong MSME sector buoyed by easy access to all of its financing needs.”
He further stated that, “As a Bank that is passionate about Promoting Enterprise, we will continue to provide innovative solutions and create global platforms that expand opportunities for small businesses to build capacity, grow revenue and connect with consumers and business experts from around the world.”
The Bank’s commitment towards strengthening small businesses is deduced as it recently launched the GTBank Food Industry Credit and Fashion Industry Credit, unique loan products designed specifically for small businesses in the food and fashion industry, and offered at a repayment rate of 9 percent per annum.
Its drive and provision for innovative solutions and socio-economic initiatives that empower small businesses with finance, resources and access to markets that they need to grow, are equally obvious in its free business platforms, the GTBank Food and Drink Festival and the GTBank Fashion Weekend, through which it is accelerating growth for Small Businesses in Nigeria’s food and fashion industries.