DBN, FC4S, NCIC Sign Pact On Green SMEs Projects’ Financing

BY COBHAM NSA – Committed to the global initiative on climate change and environmental sustainability, the Development Bank of Nigeria (DBN) Plc has signed a Memorandum of Underdertstanding (MoU) with two organisations, Financial Centre for Sustainability, Lagos (FC4S Lagos), and Nigeria Climate Innovation Center (NCIC), to fund green projects in Nigeria.

The MoU aims at creating a dedicated fund for green projects within the Micro, Small, and Medium Scale Enterprises (MSMEs) ecosystem and ensuring the businesses access funding to execute climate-resilient and green projects to support the global drive on green and sustainability.

By the terms of the pact, DBN will play the role of a Funding partner for green projects across the country with the NCIC and FC4SL serving as service providers.

The MoU also provides a general framework for a Project Implementation Partnership (PIP) between the Service Providers and DBN in respect of providing finance for Green MSMEs in Nigeria.

According to the document, 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.

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.

Offering an insight on the arrangement, 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 NDCs and the United Nations’ 2030 Sustainable Development Goals.”

Also speaking at the MoU signing that took place at DBN Head Office in Lagos, Managing Director and Chief Executive Officer of 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 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.”

In her intervention, DBN’s Executive Director, Finance and Corporate Services, Mrs Ijeoma Ozulumba, said; “We are particularly excited about this partnership because it aligns with our mandate as a development finance institution and also, with our corporate values”

She added that; “In line with the Bank’s innovative 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.”