Discussion Paper

Download

The next generation of national development banks: early lessons from Ghana and Nigeria

Sommer, Christoph / Yabibal M. Walle / Joshua Yindenaba Abor / Daniel Ofori-Sasu / Ama Asante / Robel Ghebrehanes / Benedicta Mawuena / John Kwaku Darko Okrah / Muna Osman / Paul Saupe / Anna-Lena Sprenger / Priscilla Toto
Discussion Paper (10/2026)

Bonn: German Institute of Development and Sustainability (IDOS)

ISBN: 978-3-96021-296-
DOI: https://doi.org/10.23661/idp10.2026

The discussion paper assesses whether and how newly established national development banks (NDBs), specifically the Development Bank Ghana (DBG) and the Development Bank of Nigeria (DBN), are growing into independent and impactful institutions capable of fostering sustainable development. It focuses on five analytical dimensions: (1) institutional independence, (2) the diversification of funding sources and the scaling up of operations, (3) the relationship between NDBs and participating financial institutions (PFIs), (4) collaboration between NDBs and development partners (DPs), namely multilateral development banks (MDBs) and bilateral development finance institutions and (5) sustainability and green finance. The research adopts a qualitative comparative case study methodology, drawing on 55 semi-structured interviews conducted across Ghana and Nigeria with representatives from NDBs, PFIs, DPs, civil society organisations and other relevant stakeholders such as finance ministries, central banks and providers of technical assistance. The data are analysed using qualitative content analysis and triangulation. The discussion paper aims to provide insights for policymakers, central banks and DPs, and inform the design of future NDBs regarding how they can become strong institutions that support long-term development objectives. 
Our results show that DBG and DBN have emerged as relevant actors within the Ghanaian and Nigerian development finance landscapes, particularly through their role in facilitating access to long-term and often concessional funding, which helps PFIs expanding lending to MSMEs and underserved sectors. Furthermore, the study finds that both institutions have established governance and accountability structures that, together with their wholesale lending models, provide substantial protection against political interference. In particular, strong support from DPs proved central to the establishment, growth and operationalisation of both NDBs. Beyond financial resources, DPs provided technical assistance, institutional capacity building, governance support and sustainability expertise. Another notable finding of the study is that DBG and DBN foster sustainability by embedding environmental and social principles into their strategies and operations, and making sustainability a core institutional priority, especially through wholesale lending, technical assistance and the integration of sustainability. At the same time, the study identifies several constraints related to limited funding volumes, high pricing, limited risk-sharing mechanisms, administrative burdens associated with DP engagement and challenges in adapting international sustainability standards to local contexts. Overall, the findings suggest that although DBG and DBN have generated substantial development value, established strong governance structures and demonstrated institutional independence, increasing their impact will require the mobilisation of additional funding to scale up their operations and activities.
 

Über die IDOS-Autor*innen

Weitere IDOS-Expert*innen zu diesem Thema