DBN unveils $275m climate finance fund for MSMEs

Detailed summary

The Development Bank of Nigeria has launched a $275m climate finance fund to help MSMEs invest in renewable energy and climate-resilient agriculture. Read More:…

The Federal Government, through the Development Bank of Nigeria has launched a $275m climate finance programme to help micro, small and medium-sized enterprises invest in renewable energy, climate-resilient agriculture and other low-carbon business operations.

The initiative, known as the DBN Enterprise Lending for Transition and Adaptation Programme, is designed to address the financing challenges preventing small businesses from adopting climate-friendly technologies and strengthening their resilience to extreme weather conditions.

The programme, unveiled on the sidelines of the 31st United Nations Climate Change Conference in Türkiye, is expected to mobilise affordable, long-term financing, including a $100m contribution from the Green Climate Fund.

It is also projected to benefit approximately 1.3 million people and reduce greenhouse gas emissions by an estimated 4.5 million tonnes of carbon dioxide equivalent.

Speaking at the launch on Friday, the Managing Director and Chief Executive Officer of DBN, Tony Okpanachi, said the initiative represented an expansion of the bank’s mandate to address the financing gap facing Nigerian businesses, particularly those operating in underserved sectors.

He said climate change had become an immediate economic threat to Nigerian enterprises, affecting production, supply chains and operating costs, while creating opportunities for businesses willing to invest in cleaner technologies.

He said, “Ladies and gentlemen, with a target size of $275 million, Delta will expand assets to finance for Nigerian MSMEs, investing in clean energy and climate resilient agriculture.

“In practical terms, this could mean enabling a full processor to replace costly diesel generation with solar power. It could mean helping an agricultural enterprise invest in efficient irrigation to manage increasingly unpredictable rainfall.

“Since DBN was established in 2017, our mandate has been very, very clear to address Nigeria’s MSMEs financing gap, challenging…

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