The Development Bank of Nigeria (DBN) has inaugurated a 275-million-dollar climate finance programme to support Micro, Small and Medium Enterprises (MSMEs).
According to the bank, the programme will adopt clean energy solutions, strengthen climate resilience and expand sustainable business operations.
The programme, known as the DBN Enterprise Lending for Transition and Adaptation (DELTA), is also designed to bridge the financing gap facing Nigerian businesses seeking to invest in renewable energy-efficient technologies and climate-resilient agriculture.
Speaking on the sidelines of the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye on Friday, the DBN Managing Director and Chief Executive Officer (CEO), Dr. Tony Okpanachi said that climate change was already affecting Nigerian businesses through unpredictable weather patterns, disruptions to production and supply chains, and rising energy costs.
He said that the initiative represented an expansion of DBN’s mandate of addressing financing challenges facing productive and underserved enterprises, with a renewed focus on climate-related investments.
He explained that the programme will combine lending, risk-sharing mechanisms and technical assistance to address barriers such as high upfront investment costs, collateral constraints, inadequate credit facilities and limited project preparation capacity.
According to him, the facility will support businesses to replace expensive diesel-powered generators with solar energy, invest in efficient irrigation systems and strengthen agricultural production against increasingly unpredictable rainfall.
He said that DBN would commit its own resources to the programme and collaborate with the Green Climate Fund (GCF) and other development partners to mobilise additional capital, technical expertise and risk-sharing instruments.
Okpanachi added that the success of DELTA would be measured not merely by the size of its financing facility but by its impact on businesses through lower energy costs, increased productivity, stronger resilience and sustainable economic growth.
In his welcome address, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, described the initiative as an important step towards translating Nigeria’s climate commitments into practical financial solutions.
Oyedele, who was represented by the Deputy Director, IERD, in the ministry, Mr. Abubakar Matazu, said that climate change was an economic, fiscal and development challenge for Nigeria, with growing implications for agricultural productivity, food security, energy access, infrastructure and livelihoods.
He said that the 275-million-dollar programme, including a 100-million-dollar contribution from GCF, is expected to expand access to affordable, and long-term financing for MSMEs.
According to him, it is also to benefit approximately 1.3 million people and reduce greenhouse gas emissions by an estimated 4.5 million tonnes of carbon dioxide equivalent.
The minister said the Federal Government of Nigeria remained committed to creating an enabling fiscal, policy and institutional environment to mobilise climate finance and attract private-sector investment.
He said that development finance institutions such as DBN had a critical role in connecting international climate funding with local businesses through accessible financing opportunities.
Dr. Omotenioye Majekodunmi, the Director-General, National Council on Climate Change (NCCC), said that MSMEs were also emerging as key drivers of climate solutions through the adoption of renewable, energy-efficient technologies and climate-resilient business practices.
Dr. Majekodunmi described MSMEs as both highly vulnerable to climate change and important drivers of climate solutions.
GIK/APA