The Development Bank of Nigeria (DBN) Plc is set to create a dedicated fund for green projects within the Micro, Small, and Medium Scale Enterprises (SMEs) ecosystem.
It is partnering the Financial Centre for Sustainability Lagos (FC4S Lagos) and Nigeria Climate Innovation Centre (NCIC) to facilitate an environment that will ensure that the MSMEs have access to finance to execute climate-resilient and green projects in support of global drive on green and sustainability.
To this end, the DBN, Financial Centre for Sustainability Lagos (FC4S Lagos) and Nigeria Climate Innovation Centre (NCIC) have signed a memorandum of understanding (MoU) to fund green projects in Nigeria.
DBN in a statement in Abuja said it is the funding partner for green projects across Nigeria while the NCIC and FC4SL will serve as service providers.
According to the statement, “the goal of the MoU is to create a dedicated fund for green projects within the Micro, Small, and Medium Scale Enterprises (SMEs) ecosystem.
This will ensure that the MSMEs have access to finance to execute climate-resilient and green projects in support of global drive on green and sustainability”.
The MoU provides a general framework for a Project Implementation Partnership between the Service Providers and DBN in respect of the provision of finance for Green MSMEs in Nigeria.
“The areas of collaboration between the service providers and the funding partner include, to develop the ecosystems for the financing of Green MSMEs, review of MSMEs project ideation and design, capacity building and ensuring financial readiness of MSMEs, in addition to the provision of strands for Women-led MSMEs in green areas, research and data provision and project verification to ensure compliance with globally accepted taxonomy/sustainability principles and standards” the statement said.
As a funding partner, DBN will provide the financing platform from International Development Partners for Green MSMEs as identified and endorsed by the service providers as well as technical/financial assistance to partners, financial institutions, and MSMEs to develop capacity for ideation, development, financing, and management of impactful, viable, and financially sustainable green projects.
Commenting on the development, Executive Director, Finance and Corporate Services, DBN Mrs. Ijeoma Ozulumba, stated that this partnership aligns with the bank’s mandate and corporate values as a development finance institution. She further stated that “in line with the bank’s mandate of improving access to finance for Nigerian MSMEs, Green Finance and related services to Nigerian MSMEs will promote climate action and accelerate sustainable socio-economic development in areas such as technology, agriculture, health, education and job creation.
Executive Secretary of FC4S Lagos, Mr. Emmanuel Etaderhi, said: “the Green MSMEs Fund is critically important to easing access to finance for MSMEs that are implementing low-carbon, climate-resilient projects as this will contribute towards the achievement of Nigeria’s Nationally Determined Contribution (NDCs) and the United Nations’ 2030 Sustainable Development Goals.”
Also speaking on the MoU, MD/CEO of the NCIC, Mr. Bankole Oloruntoba, said: “The core of NCIC duties is to create linkages for Green SMEs and mid-sized companies operating in several gaps in the Emerging Green Economy.”
These linkages he noted include “access to finance, capacity building, access to markets, prototype design, etc. for the Green MSMEs and financing organizations. We are excited to collaborate with FC4S Lagos and DBN on this journey to scale the green ventures and create a viable green economy in Nigeria”.