DBN unveils $275m climate finance fund for MSMEs

The Federal Government and Development Bank of Nigeria (DBN) have introduced a $275 million climate finance fund aimed at helping micro, small, and medium-sized enterprises (MSMEs) invest in renewable energy, climate-resilient agriculture, and other low-carbon business practices. The DBN Enterprise Lending for Transition and Adaptation Programme was launched at the 31st United Nations Climate Change Conference, with the aim of providing affordable, long-term financing for small businesses.

DBN's Managing Director and CEO, Tony Okpanachi, highlighted that the initiative addresses the financing gap faced by Nigerian businesses, particularly in underserved sectors. He emphasized that climate change poses immediate economic threats to enterprises and presents opportunities for those investing in cleaner technologies. The programme, which is expected to benefit around 1.3 million people and reduce greenhouse gas emissions by 4.5 million tonnes of CO2 equivalent, will combine lending, risk-sharing arrangements, and technical assistance to overcome obstacles discouraging financial institutions from funding climate-related investments.