…reports robust 2024 financial performance, declares N5.83bn dividend payout
“The Development Bank of Nigeria (DBN) has obtained shareholder approval to invest up to $2.5 million, representing a 25% equity stake, in the proposed Youth Entrepreneurship Investment Bank (YIB)–a new investment vehicle aimed at providing equity funding to youth-led businesses in Nigeria.’
The approval was granted during the bank’s 8th Annual General Meeting (AGM) held in Abuja on Wednesday.
This move aligns with DBN’s broader mission to support Micro, Small, and Medium Enterprises (MSMEs), job creation, and entrepreneurship among Nigeria’s youth.
According to Tony Okpanachi, DBN Managing Director, YIB is not a conventional bank. It is an investment vehicle that will deploy equity into promising youth-owned enterprises.
“This is about backing ideas and unlocking growth through long-term capital – not debt,” Okpanachi told
journalists after the AGM.
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The initiative is a partnership between DBN, the Nigeria Sovereign Investment Authority (NSIA), and the African Development Bank (AfDB), with additional backing expected from development finance institutions.
The AfDB is currently in discussions to provide debt financing, which would bolster the capital available to the vehicle without diluting equity.
“This $2.5 million is DBN’s initial stake,” Okpanachi said. “We are co-investing alongside NSIA, and this sets the stage for broader institutional participation – both local and global.”
YIB aims to fill a critical funding gap in Nigeria’s startup ecosystem. While the country has a vibrant pool of young entrepreneurs, access to early-stage funding remains limited. Many businesses rely on short-term loans or informal capital, which often constrains scalability and long-term planning.
Okpanachi emphasized that YIB’s structure is deliberately designed to avoid the trappings of a traditional bank.
“This is not a commercial bank. It won’t provide loans or open retail accounts. It’s structured purely as an equity-focused investment vehicle, targeting scalable ventures with strong fundamentals and youth ownership.”
This will be DBN’s second strategic investment following the establishment of its wholly owned impact credit guarantee subsidiary, which offers partial credit guarantees to MSMEs.
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Final structuring of YIB is underway. Following the shareholder greenlight, the promoters are now coordinating with the relevant stakeholders to complete incorporation, legal frameworks, and capital mobilisation.
“We expect all groundwork to be finalised by the end of this year, with operations likely to begin by early 2026,” Okpanachi disclosed.
The move comes amid growing concerns over Nigeria’s rising youth unemployment rate. By investing directly into youth-led businesses, DBN and its partners aim to accelerate job creation, promote innovation, and catalyze
broader economic development.
“There’s already strong interest from global players,” the MD noted, though he declined to name institutions due to ongoing negotiations. “What we are doing is laying the foundation. YIB will serve as a credible, well-structured platform to crowd in institutional capital and scale youth-driven entrepreneurship.
He added that YIB is not a one-off initiative but part of a long-term strategy to create sustainable investment channels focused on Nigeria’s demographic dividend.
“This is more than a financial transaction, Okpanachi said. “It is a statement of intent. We believe in the entrepreneurial potential of Nigerian youth – and we are backing that belief with real capital.’
In addition to this strategic investment, DBN reported strong financial performance for the year 2024.
Gross income rose to N84.032 billion from N54.814 billion in 2023. Net interest income increased to N64.608 billion from N40.383 billion, and net operating income climbed to N68.366 billion from N44.51 7 billion.
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Total comprehensive income also saw a significant rise, reaching N38.828 billion from N24.457 billion.
Total assets grew to N759.106 billion in 2024 from N543.963 billion, and shareholder funds exceeded N264 billion.
On the back of this financial performance, DBN announced a N5.83 billion dividend payout, translating to
N58.35 per share, as approved by shareholders at the AGM.
In addition to the financials, DBN achieved other milestones, reaching a total disbursement of N1.06trillion to its Participating Financial Institutions (PFIs), representing a 35% increase from the cumulative disbursement as of 2023.
The bank’s loan disbursement stood at N273.13 billion, marking a 75% growth from N155.7 billion disbursed in 2023.
In terms of loan volume, it provided funding to 711,819 end borrowers, reflecting a 44% increase from 494,819 in 2023. Of these beneficiaries, 74% or 539,132 were women, and 185,200 were youth-owned businesses.
Additionally, N49 billion was disbursed to more than 69,182 MSMEs in economically disadvantaged regions such as Borno, Adamawa, Katsina, Yobe, and Zamfara.
The bank also issued over N248 billion in guarantees, leading to the creation of more than 1.2 million jobs.
A total of 72 Participating Financial Institutions (PFIs), comprising Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Merchant Banks, and Other Financial Institutions (OFIs), were onboarded.
Furthermore, 9,500 MSMEs were trained across the country, with 25% of the beneficiaries being women.
Despite these achievements, DBN operates with a lean workforce of just 72 full-time employees.
“This demonstrates our operational efficiency and commitment to supporting MSMEs and impacting national economy,” Okpanachi told journalists.
