AfDB Approves $61m Package To Boost Women-led Businesses In Nigeria

The board of directors of the African Development Bank Group (AfDB) has approved a $61 million financing package for the Development Bank of Nigeria (DBN) to expand access to affordable credit
for women-owned and women-led businesses across Nigeria, particularly in the agricultural sector.

The financing comprises three instruments: a $50 million gender-focused line of credit; an $8 million concessional facility under the Agri-food SME catalytic financing mechanism; and a $3 million grant under the bank’s affirmative finance action for women in Africa initiative, funded by the women entrepreneurs finance initiative.

“This package demonstrates the Bank’s commitment to private sector-led growth by combining long-term financing,
concessional resources, partial credit guarantees, and capacity-building support.

“It will be chanelled through DBN’s
network of participating financial institutions to strengthen MSME lending and advance Nigeria’s inclusive
economic transformation, particularly through women entrepreneurship and agricultural development,” the AfDB said in a statement.

A defining feature of the operation is its strong gender focus, with more than 95 percent of the total financing
earmarked for WSMEs. This targeted approach aligns with the objectives of AFAWA and ACFM and the Bank’s
broader commitment to narrowing the gender financing gap in Africa.

The performance-based incentives under the AFAWA programme are expected to expand the number of eligible women-owned enterprises while increasing the
share of women-focused lending within DBN’s MSME portfolio.

Commenting on the approval, director general of the African Development Bank Group Nigeria Country Office, Dr Abdul Kamara said: “Women entrepreneurs are one of Nigeria’s greatest economic assets and one of its most underleveraged. These operation reflects the African Development Bank’s commitment to unlocking economic opportunities for women.

“By working through DBN to reach women-owned businesses in agriculture, clean energy, healthcare, and beyond, we are not just expanding access to credit; the Bank is investing in the engine of Nigeria’s
inclusive economic transformation.”

He said the approval further deepens a longstanding partnership between the African Development Bank and the
Development Bank of Nigeria, dating back to the AfDB’s role in DBN’s establishment through start-up equity, long-term financing, and governance support, alongside the Federal Government of Nigeria and other development
partners.

The operation aligns with the AfDB’s four cardinal points framework, particularly the pillar on harnessing demographic transformation for economic development, as well as the Bank’s 10-year strategy
(2024-2033), which prioritises inclusive growth, private sector development, and gender equality.