Nigeria’s small businesses could gain access to cheaper financing for solar power, climate-resilient agriculture and energy-efficient operations under a $275 million programme launched by the Development Bank of Nigeria (DBN).

The facility is designed to help micro, small and medium-sized enterprises (MSMEs) reduce operating costs, protect production from climate-related disruptions and invest in cleaner energy alternatives. The Green Climate Fund is providing $100 million, with DBN expected to contribute its own resources and mobilise additional funding from development partners.

DBN Managing Director and Chief Executive Officer Tony Okpanachi announced the initiative on the sidelines of the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye, on Friday. The programme comes as Nigerian businesses face rising energy expenses, unpredictable weather and disruptions to agricultural production and supply chains.

Solar power and agriculture among priorities

For many Nigerian businesses, the cost of switching to cleaner energy remains a significant obstacle. Small enterprises that depend on diesel-powered generators face substantial operating expenses, while farmers must contend with increasingly unpredictable rainfall and its effects on agricultural output.

The DBN programme will address these challenges through a combination of lending, risk-sharing arrangements and technical assistance. Its financing structure is intended to reduce barriers that prevent smaller businesses from investing in climate-friendly technologies, including high initial costs, collateral requirements, limited credit access and inadequate project preparation capacity.

Eligible investments will include replacing diesel generators with solar energy systems, installing efficient irrigation infrastructure and strengthening agricultural production against changing weather conditions.

Okpanachi said the programme would extend DBN’s financing mandate towards climate-related investments, particularly for productive businesses that have historically struggled to secure affordable credit. He added that its performance would be assessed through measurable improvements in business operations, including lower energy expenses, higher productivity and stronger resilience, rather than simply the amount of money disbursed.

Federal Government backs wider climate financing

The Federal Government has also identified the programme as part of efforts to translate Nigeria’s climate commitments into practical investment opportunities.

Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele, represented at the event by Abubakar Matazu, Deputy Director of IERD in the ministry, said climate change was increasingly affecting the country’s economic and development priorities.

He highlighted its implications for food security, agricultural productivity, energy access, infrastructure and livelihoods, stressing the importance of expanding affordable, long-term financing for businesses. The government also reaffirmed its commitment to establishing the fiscal, policy and institutional conditions needed to attract private investment into climate-related projects.

DBN expands its MSME financing portfolio

The $275 million initiative adds to DBN’s existing efforts to increase access to capital for Nigerian businesses. In June 2026, the bank disclosed that it had disbursed more than N1 trillion($744.2 million) to over one million MSMEs since beginning operations, supporting the creation of more than 1.6 million jobs.

The bank also secured a €200 million($220.4 million) financing partnership with the European Investment Bank’s development arm, EIB Global, to support Nigerian MSMEs and mid-sized companies in agriculture, renewable energy, digitalisation and innovation.

In another financing development, the African Development Bank approved a $61 million package for DBN in May 2026 to expand affordable credit for women-owned and women-led businesses.

The package comprised a $50 million credit line, an $8 million concessional financing facility for agricultural businesses and a $3 million grant. With the latest climate finance programme, DBN is extending its lending priorities beyond conventional business expansion towards investments intended to help Nigerian enterprises manage energy costs and climate-related risks.