DBN to Empower Next Generation SME & MSMEs with $2.5 Million Investment in Youth Bank

In a bold step toward economic justice and youth empowerment, the Development Bank of Nigeria (DBN) has secured shareholder approval to invest $2.5 million in the Youth Entrepreneurship Investment Bank (YEIB)—a first-of-its-kind institution that will provide targeted equity financing for youth-led businesses across Nigeria. The announcement was made at DBN’s 8th Annual General Meeting in Abuja, alongside the release of its 2024 financial results.

YEIB, scheduled to launch in 2026, represents a landmark in socially responsible investing. It is being established through a partnership between DBN, the African Development Bank (AfDB), and the Nigerian Sovereign Investment Authority (NSIA), with the express purpose of narrowing the opportunity gap for young Nigerians—many of whom are excluded from traditional banking systems.

Unlike conventional banks, YEIB will operate as an investment platform focused solely on supporting youth-owned enterprises. With NSIA leading equity contributions and DBN acting as a strategic equity investor, the project underscores a broader commitment to creating inclusive and sustainable economic structures that prioritize empowerment over profit.

DBN’s Managing Director and CEO affirmed that YEIB aligns directly with the bank’s mandate to drive inclusive development by addressing youth unemployment and economic marginalization—two of Nigeria’s most pressing social challenges. The CEO highlighted the urgency of equipping young people with the capital and institutional support they need to become agents of change in their communities.

Read also: Made in Naija: Union Bank Empowers Young Nigerian Entrepreneurs

In a country where over 60% of the population is under the age of 25, yet youth unemployment and underemployment remain dangerously high, YEIB offers more than funding—it offers hope. It reflects a growing understanding within Nigeria’s development finance ecosystem that sustainable growth must be equitable, and that financial inclusion is a social responsibility, not just a commercial opportunity.

The legal and structural groundwork for YEIB is expected to be completed by late 2025, with operations beginning in early 2026. Discussions with global development partners are ongoing, with potential for expanded participation from mission-aligned institutions.

This initiative builds on DBN’s growing record of socially impactful investment. In 2024, the bank significantly increased its ownership in its subsidiary, the Impact Credit Guarantee Company Limited (ICGL), converting over N20 billion in debt to equity in order to strengthen MSME access to credit.

DBN also reported strong lending performance in 2024, disbursing N273.13 billion in loans to Micro, Small, and Medium Enterprises (MSMEs)—a 75% increase from 2023. Total loan disbursement now stands at over N1.06 trillion. Notably, more than N49 billion in loans were directed to MSMEs in conflict-affected and underserved regions, including Borno, Yobe, Adamawa, Zamfara, and Katsina—demonstrating DBN’s commitment to rebuilding fragile communities and driving equitable regional development.

The number of end-borrowers surged to 711,819 in 2024, up from 494,819 in the previous year. These figures are more than just statistics—they represent thousands of lives touched and communities strengthened through socially conscious finance.

Shareholders also approved a dividend payout of N5.83 billion, translating to N58.35k per share. But beyond the numbers, DBN’s 2024 AGM sends a powerful message: development finance can and must serve as a tool for transformation.

As DBN leads the charge toward the launch of YEIB, it reaffirms its role not just as a lender, but as a catalyst for social progress. By championing initiatives that empower young entrepreneurs and support vulnerable communities, DBN is helping to build a more inclusive, just, and resilient Nigeria—one investment at a time.