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.
“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. Across thousands of businesses, investments such as this have the potential to translate climate finance into greater resilience, stronger productivity, and more sustainable growth.
“Since DBN was established in 2017, our mandate has been very, very clear to address Nigeria’s MSMEs financing gap, challenging capital for productive and underserved enterprises. Today, we are extending that mandate to one of the final challenges of our time, and that is in the area of climate change.
“For Nigerian businesses, climate change is not a distant mystery. It is already being felt through more unpredictable weather, pressure on Nigerian production and supply chains, and the rising cost of energy. But the transition also presents an opportunity. Businesses can invest in cleaner and more efficient energy, strengthen the resilience of agricultural production, reduce operating costs, and become more competitive.”
Okpanachi explained that the facility would combine lending, risk-sharing arrangements and technical assistance to overcome the obstacles discouraging financial institutions from funding climate-related investments.
Representing the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the Deputy Director, IERD, Federal Ministry of Finance, Abubakar Matazu, described climate change as an economic and development challenge requiring substantial private-sector investment.
He said Nigeria could not depend solely on public resources to finance its climate transition, stressing the need to attract concessional funding, guarantees and private capital.
According to him, the Federal Government remains committed to providing the fiscal, policy and institutional environment required to mobilise climate finance and make funding accessible to businesses.
“The Delta Programme, valued at $275 million, aims to mobilise climate finance to expand access to affordable, long-term financing for MSMEs, supporting their transition to low-carbon operations and climate-resilient agriculture.”
The Head of Climate Finance at the National Council on Climate Change, Benny Ejiofor, said the facility would make climate financing more accessible to small businesses rather than concentrating opportunities among large corporations.
He called on financial institutions to increase green lending and urged small businesses to incorporate climate considerations into their operations.
He said, “Today is not just another launch. Today we are opening a new door of opportunity for thousands of small businesses that power our economy. We all know that MSMEs are the backbone of Nigeria.”
The Director of Climate Change, Rural Development and Infrastructure Division at GIZ, Alexander Haack, said the organisation would provide technical assistance to complement the financing support, including strengthening the capacity of businesses and financial institutions to develop bankable projects.