Nigeria launches $275 million climate finance programme
By the AFREEQUE newsroom, based on Punch
Nigeria’s Development Bank has launched a $275 million climate finance programme to help micro, small and medium-sized enterprises invest in renewable energy and climate-resilient agriculture. The initiative, unveiled on the sidelines of the UN’s 31st climate conference in Turkey, includes $100 million from the Green Climate Fund and targets 1.3 million beneficiaries, according to the bank.
Nigeria’s federal government has launched a $275 million climate finance programme to help micro, small and medium-sized enterprises invest in renewable energy, climate-resilient agriculture and low-carbon economic activities. The initiative is being led by the Development Bank of Nigeria (DBN), the country’s public development bank, Punch reports. It was launched on Friday on the sidelines of the 31st United Nations Conference on Climate Change (COP31), held in Turkey.
Named the DBN Enterprise Lending for Transition and Adaptation Programme, the scheme is intended to mobilise accessible, long-term financing. It includes a $100 million contribution from the Green Climate Fund, an international financial mechanism dedicated to climate action. The programme is expected to benefit around 1.3 million people and enable an estimated reduction of 4.5 million tonnes of carbon dioxide equivalent in greenhouse gas emissions.
The managing director of the Development Bank of Nigeria, Tony Okpanachi, described the launch as an extension of the institution’s mandate, established in 2017 to reduce difficulties in accessing finance for Nigerian small and medium-sized enterprises. He stressed that climate change was already affecting production, supply chains and businesses’ operating costs. According to him, the financing should enable agribusinesses in particular to replace diesel generators with solar installations and farms to invest in more efficient irrigation systems in response to irregular rainfall.
The programme therefore aims to direct small businesses’ investments towards less polluting equipment and activities better suited to extreme weather events. It comes as Nigerian SMEs continue to face significant financing needs, particularly in productive sectors that are insufficiently served by traditional banking channels.
