Diamond Bank gives N70bn loans to 30,000 SMEs

The management of Diamond Bank Plc said on Wednesday that it had given out N70bn loan facilities to operators of Small and Medium Enterprises across the country in the last four years.

The Head, Micro, Small and Medium Enterprises of the bank, Mr. Chima Nnadozie, said this in Akure during the Diamond Bank Businessxpress seminar for owners of SMEs in the state.

Nnadozie, however, said N35bn of the amount was presently being utilised by about 12,000 SMEs operators for the development of their businesses.


The bank, he stressed, was committed to the development of the SMEs in the country as they contribute immensely to the economy of the nation.

He said the bank had designed a programme since 2005 for the development of SMEs in Nigeria.

He said the bank gives out financial assistance in the form of loans to its customers while the seminar, business talk and advice formed part of the non-financial services of the bank.

He said, “This seminar is part of the propositions that Diamond Bank has for MSMEs, the bank has a business strategy of supporting MSME and this includes providing financial and non-financial services.

 “In the financial services, we have account, loan, payment, transferring money while non-financial service includes things we do to improve the business, including holding a monthly seminar, conducting business clinic, and providing access to finance.

 “Diamond Bank has been supporting medium and small scale businesses; we grant loan to them; we give them up to N3m unsecured loans for those of them who don’t have collateral,

“Since 2009, we have granted this type of loans of about N70bn to more than 30,000 SMEs but right now what is left in the book is about N35bn to 12,000 SMEs.”

Nnadozie explained that the bank had further planned to encourage SMEs by ensuring that participants at the seminar had access to loan facilities of the bank at a reasonable interest rate.

He said, “The seminar holding in Akure is the 29th in the series; we have about 250 participants; the aim of the seminar is to help build the managerial capacity of the SMEs in general because we recognise that a lot of people who are running businesses today did not receive formal training.”

Meanwhile, the bank says it has secured the approval of the Financial Services Authority, United Kingdom to operate a bank in the UK.

Its Group Managing Director and Chief Executive Officer, Dr. Alex Otti, was quoted, in a separate statement as saying, “We at Diamond Bank are delighted to secure the affirmation of the FSA for our bid to set up a UK subsidiary to enable us offer wholesale financial services, including facilitating international trade to new and existing clients.

“This approval also provides a unique opportunity for Diamond Bank to establish its presence in London, which is a hub for finance and banking activities in Europe.”

Otti had earlier hinted that the bank was determined to leverage its international banking licence with the acquisition of a niche bank in Europe.

Diamond Bank first opened its doors for business in 1991 with two locations in Lagos, the statement said.

It added that over the years, it had grown its branch network in the domestic market to 228; and in 2001, it opened its first international office in Republic of Benin.