Technical Assistance in Support of Capacity Building of the Development Bank of Nigeria’s Impact Credit Guarantee Company

Area of Operation: Nigeria

Duration of Assignment: October 2019 – June 2020

Name of Client: The World Bank Group

Project Description:

The World Bank-funded USD 500m Development Finance Project supported the establishment of the Development Bank of Nigeria (DBN), a wholesale development finance institution licensed and supervised by the Central Bank of Nigeria, with the objective of addressing the access to finance gaps of underserved micro, small and medium enterprises (MSME) in Nigeria. The DBN initiated provision of lending operations and planned to establish a Credit Guarantee Facility (CGF).

The client sought to obtain continuing advisory and capacity building support to IMPACT and the participating banks in the initial phase of the operationalization of the IMPACT so as to gain experience and support roll-out during the initial phase of implementation.

Our Services:

  • Advised on specific product design parameters, given initial experience with implementation of the CGF to date.
  • Used financial modeling to test and, as appropriate, adjust the design and technical parameters of the CGF products.
  • Reviewed the structure of the CGF operations and internal set-up and controls based on experience with initial implementation, including but not limited to the appropriateness of staff levels, staff profile and skillsets, and required staff training.
  • Assessed whether the eligibility criteria and procedures for selection and appraisal of participating banks achieve the desired outcomes both in screening the eligibility of new institutions and with regard to these institutions’ continuous compliance with CGF requirements.
  • Provided on-site and off-site advisory support to IMPACT staff in form of coaching, training and technical assistance with all aspects of product design, testing, roll out, overall credit guarantee operations and engagement with participating banks.
  • Provided capacity building support to the participating banks in form of trainings and workshops to ensure that they are fully familiar with the CGF products being offered by the CGF.
  • Supported and tested the adoption and usage of the IMPACT’s MIS applications introduced to support the effective implementation of the CGF.
  • Reviewed and supported the DBN’s implementation of the monitoring and evaluation systems introduced at the time of the inception of the CGF.
  • Ensured that the CGF manual and other agreements specifying all required processes and procedures is being fully adopted during the initial implementation phase and updated/revised following the piloting exercise.
  • Provided technical and operational advice to DBN and/or CBN in the consultative process pertaining to development of regulatory framework for credit guarantees currently under CBN’s consideration, based on practical experiences and international good practices related to operations of credit guarantee facilities.
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