The Development Bank of Nigeria has unveiled a $275m climate finance programme aimed at supporting Micro, Small and Medium Enterprises in adopting clean energy solutions, strengthening climate resilience and expanding sustainable business operations.
The bank’s Managing Director and Chief Executive Officer, Dr Tony Okpanachi, disclosed this on Friday on the sidelines of the 31st United Nations Climate Change Conference in Antalya, Türkiye.
The programme, known as the DBN Enterprise Lending for Transition and Adaptation, seeks to address financing gaps faced by Nigerian businesses looking to invest in renewable energy, energy-efficient technologies and climate-resilient agricultural practices.
It is expected to receive $100m in funding from the Green Climate Fund and reach approximately 1.3 million people. The initiative is also projected to reduce greenhouse gas emissions by an estimated 4.5 million tonnes of carbon dioxide equivalent.
Okpanachi said climate change was already affecting Nigerian businesses, citing unpredictable weather patterns, disruptions to production and supply chains, as well as rising energy costs.
He described the initiative as an expansion of DBN’s mandate to tackle financing challenges confronting productive and underserved businesses, with greater emphasis on investments that address climate-related risks.
According to him, the programme will deploy a combination of lending, risk-sharing mechanisms and technical assistance to overcome barriers such as high initial investment costs, collateral requirements, limited access to credit and inadequate capacity for project preparation.
The facility will support businesses looking to replace costly diesel-powered generators with solar energy, adopt efficient irrigation systems and strengthen agricultural production against increasingly unpredictable rainfall patterns.
Okpanachi said DBN would contribute its own resources to the programme while partnering with the Green Climate Fund and other development institutions to mobilise additional funding, technical expertise and risk-sharing mechanisms.
He added that the success of DELTA would be determined not just by the size of its financing facility but also by its impact on businesses, including reduced energy costs, improved productivity, greater climate resilience and sustainable economic growth.
In his welcome address, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the initiative as a significant step towards translating Nigeria’s climate commitments into practical financial solutions.
Oyedele, who was represented by the ministry’s Deputy Director of IERD, Abubakar Matazu, said climate change had evolved into an economic, fiscal and development challenge for Nigeria, with increasing consequences for agricultural productivity, food security, energy access, infrastructure and livelihoods.
He said the $275m programme, which includes a $100m contribution from the Green Climate Fund, would broaden access to affordable, long-term financing for Micro, Small and Medium Enterprises.
The minister reaffirmed the Federal Government’s commitment to establishing an enabling fiscal, policy and institutional environment to mobilise climate finance and attract private-sector investment.
The initiative builds on previous efforts by DBN and other development finance institutions to improve access to funding for Nigerian businesses, particularly MSMEs and enterprises operating in sectors central to the country’s economic development and energy transition.
