DBN launches $275 million climate finance programme for Nigerian MSMEs

The Development Bank of Nigeria (DBN) has introduced a $275 million climate finance programme, dubbed the DBN Enterprise Lending for Transition and Adaptation (DELTA), aimed at supporting Micro, Small and Medium Enterprises (MSMEs) in adopting clean energy solutions and enhancing climate resilience. The initiative was unveiled during the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye, by DBN Managing Director and CEO, Dr Tony Okpanachi.

DELTA is designed to fill the financing gap for Nigerian businesses investing in renewable energy, energy-efficient technologies, and climate-resilient agriculture, with a focus on benefiting around 1.3 million people and reducing greenhouse gas emissions by an estimated 4.5 million tonnes of carbon dioxide equivalent. Dr Okpanachi highlighted the impact of climate change on Nigerian businesses, such as unpredictable weather patterns, disruptions in production and supply chains, and rising energy costs.

DBN plans to contribute $100 million to the programme, while collaborating with the Green Climate Fund and other partners to secure additional funding, technical expertise, and risk-sharing instruments. DBN Managing Director Dr Tony Okpanachi emphasized that the success of DELTA will be determined by its tangible impact on businesses, including reduced energy costs, increased productivity, greater resilience, and sustainable economic growth.

In his opening remarks, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, emphasized the importance of translating Nigeria's climate commitments into actionable financial solutions. He noted that climate change poses a significant economic, fiscal, and development challenge for the country, with dire implications for agricultural productivity, food security, energy access, infrastructure, and livelihoods.

Oyedele, represented by Deputy Director of IERD Abubakar Matazu, reaffirmed the Federal Government's commitment to fostering a conducive fiscal, policy, and institutional environment to attract climate finance and private-sector investment. The $275 million initiative, including a $100 million contribution from the Green Climate Fund, aims to expand affordable, long-term financing options for MSMEs.

The new climate finance programme builds upon previous efforts by DBN and other development finance institutions to broaden access to funding for Nigerian businesses, particularly MSMEs and enterprises in sectors vital to Nigeria's economic and energy transition.