The Development Bank of Nigeria Plc (DBN) has become the first Direct Access Entity (DAE) in Nigeria to receive accreditation from the Green Climate Fund (GCF). This accreditation allows DBN to access green financing from the GCF, which has over $100 billion available for climate change initiatives globally. DBN’s Managing Director, Dr. Tony Okpanachi, highlighted that this milestone presents significant opportunities for Nigerian SMEs and the broader economy.
Dr. Okpanachi revealed that eligible SMEs could receive loans ranging from $50 million to $250 million under the GCF arrangement. The DBN will utilize the GCF funds for on-lending, blending with other funding sources, and managing projects.
The accreditation empowers DBN to develop and submit funding proposals, oversee project management, and deploy financial instruments such as concessional loans and co-financing to support climate change initiatives.
The accreditation covers projects in basic fiduciary standards, specialized fiduciary standards, project management, on-lending and blending for loans, and medium-sized projects with ESS Risk: Category B. This development enhances DBN’s capacity to mobilize private sector capital for climate-related projects in Nigeria.