The initiative, known as the Development Bank of Nigeria Enterprise Lending for Transition and Adaptation (DELTA) Programme, was unveiled on Friday, November 13, on the sidelines of the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye.

The programme is designed to address funding challenges that have prevented many small businesses from investing in renewable energy, energy-efficient technologies and climate-resilient agricultural practices.

It is expected to mobilise affordable, long-term financing, including a proposed $100 million contribution from the Green Climate Fund (GCF). The initiative is also projected to reach approximately 1.3 million people and support the reduction of an estimated 4.5 million tonnes of carbon dioxide equivalent emissions.

Speaking at the launch, DBN Managing Director and Chief Executive Officer, Tony Okpanachi, said the programme represents an expansion of the bank's commitment to improving access to finance for underserved businesses.

He explained that climate change has become an immediate economic concern for Nigerian enterprises, affecting production, supply chains and operating expenses, particularly through unpredictable weather conditions and rising energy costs.

Okpanachi noted that businesses could improve productivity and competitiveness by investing in cleaner energy sources and climate-adaptation measures.

He gave examples of food-processing businesses replacing expensive diesel-powered generators with solar energy and agricultural enterprises adopting efficient irrigation systems to manage irregular rainfall.

According to him, the programme will combine lending facilities, risk-sharing arrangements and technical assistance to address obstacles that discourage financial institutions from supporting climate-related investments.

These challenges include high initial investment costs, inadequate loan repayment periods, collateral requirements, limited project preparation capacity and the perceived risks associated with climate-focused projects.

He added that the initiative would also work with Nigerian financial institutions and business associations to develop a stronger pipeline of viable projects and expand their capacity to finance climate investments.

Representing the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the Deputy Director of the International Economic Relations Department at the Federal Ministry of Finance, Abubakar Matazu, described climate change as both an economic and development challenge requiring substantial investment.

Matazu said Nigeria could not depend exclusively on public funding to finance its transition to a low-carbon economy, stressing the importance of attracting private capital, concessional financing and financial guarantees.

He said the Federal Government remained committed to creating the policy and institutional conditions necessary to attract climate investments and improve access to funding for businesses.

The Head of Climate Finance at the National Council on Climate Change, Benny Ejiofor, said the programme could help make climate financing more accessible to smaller businesses that are often excluded from large-scale investment opportunities.

He urged financial institutions to expand green lending and encouraged MSMEs to incorporate climate considerations into their business operations.

Also speaking, Alexander Haack, Director of Climate Change, Rural Development and Infrastructure Division at GIZ, said the organisation would provide technical support to complement the financing facility.

He explained that the assistance would help businesses and financial institutions develop viable projects capable of attracting climate-related investments.

Haack also disclosed that GIZ's agricultural finance programme had facilitated more than €57 million in private financing for farmers in rural communities.

The Executive Director and Chief Financial Officer of DBN, Ijeoma Ozulumba, expressed confidence that the programme would attract additional development partners and financial institutions.

She said the bank already had a pipeline of prospective projects and hoped to achieve substantial deployment of the facility before the next climate conference.

The launch comes as Nigerian businesses contend with rising energy expenses, climate-related disruptions and increasing pressure to adopt more sustainable production methods.

For small businesses that depend on diesel-powered electricity or agricultural activities affected by unpredictable weather, access to affordable financing could determine how quickly they adopt cleaner technologies and strengthen their operations.

Through the programme, DBN hopes to expand access to climate finance while supporting enterprise growth, environmental sustainability and economic resilience across Nigeria.

Reporting by TalkNaijaMedia

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