The Development Bank of Nigeria, Financial Centre for Sustainability Lagos and Nigeria Climate Innovation Center on Wednesday signed a Memorandum of Understanding to fund green projects in the country.
The agreement is aimed at creating a dedicated fund for Micro, Small, and Medium Scale Enterprises ecosystem in Nigeria.
This will enable the MSMEs to execute environmental-friendly and climate-resilient projects in line with the global initiative on climate change.
A statement issued on Wednesday by DBN stated that it will play the role of a Funding Partner for the green projects while the NCIC and FC4SL will serve as Service Providers.
The Bank noted that the MOU will provide 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.
It listed some areas of collaboration between the partners to include developing the ecosystems for the financing of Green MSMEs, review of MSMEs project ideation and design, capacity building and ensuring financial readiness of MSMEs, among others.
As a funding partner, DBN said that it will provide the financing platform from International Development Partners for Green MSMEs as identified and endorsed by the service providers.
It will also provide technical and 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.
The Executive Secretary of FC4S Lagos, 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.”
Speaking on the MoU, The Managing Director, NCIC, Bankole Oloruntoba, stated that 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 said, include access to finance, capacity building, access to markets, prototype design, etc. for the Green MSMEs and financing organizations.
While expressing her delight in the partnership, the Executive Director, Finance and Corporate Services, DBN Mrs. Ijeoma Ozulumba, said that the pact is in line with the bank’s mandate of improving access to finance for Nigerian MSMEs, and promote climate action.
She further stated that the partnership will accelerate sustainable socio-economic development in areas such as technology, agriculture, health, education and job creation.