The Development Bank of Nigeria (DBN) has introduced a $275 million climate finance programme designed to help micro, small and medium enterprises (MSMEs) adopt clean energy solutions, improve climate resilience and expand sustainable business operations.
Dr Tony Okpanachi, DBN's Managing Director and Chief Executive Officer, announced the facility on Friday on the sidelines of the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye. Named the DBN Enterprise Lending for Transition and Adaptation (DELTA), the programme aims to close the financing gap facing Nigerian businesses that want to invest in renewable energy, energy-efficient technologies and climate-resilient agriculture.
The initiative is expected to include a $100 million contribution from the Green Climate Fund (GCF), benefit about 1.3 million people and reduce greenhouse gas emissions by an estimated 4.5 million tonnes of carbon dioxide equivalent.
Okpanachi said climate change is already affecting Nigerian enterprises through unpredictable weather patterns, disruptions to production and supply chains, and rising energy costs. He described DELTA as an expansion of DBN's mandate to address financing challenges facing productive and underserved enterprises, with a renewed focus on climate-related investment.
The programme will combine lending, risk-sharing mechanisms and technical assistance to address barriers such as high upfront investment costs, collateral constraints, inadequate access to credit and limited project preparation capacity. Specifically, the facility will support businesses seeking to:
- Replace expensive diesel-powered generators with solar energy - Invest in efficient irrigation systems - Strengthen agricultural production against increasingly unpredictable rainfall
DBN will commit its own resources while collaborating with the Green Climate Fund 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 the financing facility but by its impact on businesses through lower energy costs, increased productivity, stronger resilience and sustainable economic growth.
