DBN launches $275 million climate finance programme for MSMEs

The Development Bank of Nigeria (DBN) has launched a $275 million climate finance programme for Micro, Small and Medium Enterprises (MSMEs). The facility is meant to help them adopt clean energy, improve climate resilience and expand sustainable operations.

DBN Managing Director and Chief Executive Officer Dr Tony Okpanachi announced the programme on Friday at the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye. The programme is called DBN Enterprise Lending for Transition and Adaptation (DELTA).

What DELTA will finance

DELTA is designed to bridge the financing gap facing Nigerian businesses that want to invest in renewable energy, energy-efficient technologies and climate-resilient agriculture. It is expected to include a $100 million contribution from the Green Climate Fund (GCF). DBN expects it to benefit about 1.3 million people and cut greenhouse gas emissions by an estimated 4.5 million tonnes of carbon dioxide equivalent.

Okpanachi said climate change is already affecting Nigerian businesses through unpredictable weather, disruptions to production and supply chains, and rising energy costs. He said the initiative expands DBN’s mandate to address financing challenges facing productive and underserved enterprises, with a renewed focus on climate-related investments.

The programme will combine lending, risk-sharing mechanisms and technical assistance. It will target barriers such as high upfront investment costs, collateral constraints, inadequate access to credit and limited project preparation capacity. The facility will support businesses seeking to replace diesel-powered generators with solar energy, invest in efficient irrigation systems and strengthen agricultural production against unpredictable rainfall.

Okpanachi said DBN will commit its own resources while working with the Green Climate Fund and other development partners to mobilise capital, technical expertise and risk-sharing instruments. He said success will be measured not just by the size of the facility but by lower energy costs, higher productivity, stronger resilience and sustainable economic growth.

Government support and prior funding

Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele described the initiative as an important step towards turning Nigeria’s climate commitments into practical financial solutions. Oyedele, who was represented by Abubakar Matazu, Deputy Director of IERD in the ministry, said climate change has become an economic, fiscal and development challenge for Nigeria, with implications for agricultural productivity, food security, energy access, infrastructure and livelihoods. He said the $275 million programme, including the $100 million GCF contribution, should expand access to affordable, long-term financing for MSMEs.

The new programme builds on earlier DBN and development finance initiatives. In June 2026, the European Investment Bank, through EIB Global, partnered with DBN on a €200 million facility for Nigerian MSMEs and mid-sized businesses in agriculture, renewable energy, digitalisation and innovation. Earlier in June 2026, DBN said it had disbursed more than N1 trillion to over one million MSMEs since starting operations, supporting more than 1.6 million jobs. In May 2026, the African Development Bank approved a $61 million package for DBN to expand affordable credit for women-owned and women-led MSMEs. The package had a $50 million line of credit, an $8 million concessional facility for agricultural businesses and a $3 million grant.

For Nigerian MSMEs, the programme adds a climate-focused financing channel at a time when diesel costs and weather risks are pressing margins. If the funding reaches businesses, it could support lower energy bills and more resilient operations.