FG Launches $275 Million Fund to Support Nigerian Small Businesses

The Federal Government has launched a $275 million climate finance programme aimed at helping small and medium-sized businesses in Nigeria access affordable funding for renewable energy, agriculture and environmentally friendly business operations.

The programme, known as the Development Bank of Nigeria Enterprise Lending for Transition and Adaptation (DBN DELTA), was unveiled on the sidelines of the 31st United Nations Climate Change Conference (COP31) in Türkiye.

The initiative is designed to address the financial difficulties preventing many Nigerian businesses from investing in cleaner technologies and adapting to the effects of climate change.

According to the Managing Director of the Development Bank of Nigeria, Tony Okpanachi, the programme will support businesses seeking to replace expensive diesel generators with solar energy and help agricultural enterprises invest in efficient irrigation systems.

The $275 million facility is expected to mobilize long-term financing, including a $100 million contribution from the Green Climate Fund.

The programme is projected to benefit approximately 1.3 million people and reduce greenhouse gas emissions by an estimated 4.5 million tonnes of carbon dioxide equivalent.

Representing the Minister of Finance, Abubakar Matazu explained that climate change had become an economic challenge affecting business operations, agricultural production and supply chains.

He stressed that Nigeria could not rely solely on government resources to finance its transition to cleaner energy, making private-sector investment and international partnerships necessary.

The Head of Climate Finance at the National Council on Climate Change, Benny Ejiofor, also encouraged financial institutions to make green financing more accessible to small businesses.

If successfully implemented, the programme could help Nigerian entrepreneurs reduce operating costs, improve productivity, create employment and build businesses capable of surviving climate-related challenges.

Source: Punch Newspapers, November 13, 2026.

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