Blending Innovation and Finance: Reflections on DBN’s Annual Lecture
Yesterday, I attended the Development Bank of Nigeria’s Annual Lecture Series, which was delivered by Dr. Nneka Onyeali-Ikpe on the topic Empowering Nigerian MSMEs in a Challenging Global Landscape. The event was hosted by DBN’s CEO, Dr Tony Okpanachi, and peerlessly compered by my senior sister, Eugenia Abu. Dr Tope Fasua (whose 2010 book, CRUSHED, remains relevant regarding Africa and its development issues) spoke on behalf of HE Kassim Shettima, the Vice President. There was a panel comprising Abba Abubakar Aliyu from REA, Ajuma Ataguba from The Founders Institute, FutureSoft’s Nkemdilim Uwaje Begho, and NORD’s Ajayi Oluwatobi who parlayed their answers in ways that expanded on and added value to the conversation. Kudos to all the folks at the Development Bank of Nigeria who put the event together.
As Dr Onyeali-Ikpe stated in her keynote, there is a need to rethink access-to-financing for MSMEs in Nigeria. Organisations like DBN must be even more proactive in ensuring that eligible MSMEs get the support they need via their PFIs. Tenor and loan structure are key. For example, Tigray Coffee Co. is one of just five companies centred on adding value to Nigerian coffee. Accessing loans at commercial rates to expand market share is not feasible for us. Strategically, even if not a core part of our business, we have to be interested in guaranteeing long-term access to quality Nigerian coffee beans. Yet there’s a four-year runway between planting fresh coffees and when they start to yield which commercial rate loans simply cannot bear. There are also considerable input and agricultural extension costs, as well as several use cases for technology transfer if Nigeria is to make an international play in the coffee trade. Aspects of the coffee value chain must be de-risked at the wholesale.
The Development Bank and similar institutions can be specifically useful to MSMEs like us and play a role in the Federal Government’s oft-stated desire to increase non-oil exports.
In his opening address, Dr Tony Okpanachi noted: “As Nigeria’s primary development finance institution, we at DBN recognize that the current global economic climate presents a formidable challenge to MSMEs, particularly in Nigeria where rising production costs, inflation, unstable exchange rates, and disruptions in the global supply chain affect output,” while highlighting the bank’s disbursement to priority areas. Food & Beverage exports, especially for commodities such as coffee for which we have a distinct and desirable flavour profile, ought to be a priority area.
All said it was a thoroughly engaging event. The energy – the Transcorp Hilton Congress Hall was full – was infectious. And it was lovely to hear of the role Abubakar Suleiman and Sterling Bank (my bankers!) played in the early days of NORD Automobiles.
R. Ali,
CEO, Tigray Coffee Co.
richard.ali@tigraycoffee.com
- Blending Innovation and Finance: Reflections on DBN’s Annual Lecture - September 26, 2024
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