Development Bank of Nigeria (DBN) Plc, Financial Centre for Sustainability Lagos (FC4S Lagos) and Nigeria Climate Innovation Centre (NCIC) have signed a memorandum of understanding to fund green projects in Nigeria.
DBN in a statement that was released yesterday said the move is part of a global initiative on climate change and environmental sustainability. The event took place at the DBN head office in Lagos and it’s expected to see DBN play the role of a funding partner for green projects across Nigeria whilst the NCIC and FC4SL will serve as service providers.
The goal is to create a dedicated fund for green projects within the Micro, Small, and Medium Scale Enterprises (MSMEs) ecosystem to ensure that MSMEs have access to finance to execute climate-resilient and green projects in support of the global drive on green and sustainability.
The MoU provides 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.
The 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 stands 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, it stated.
According to executive secretary of FC4S Lagos, Mr Emmanuel Etaderhi, the green MSMEs fund is critically important to easing access to finance for MSMEs that are implementing low-carbon, climate-resilient projects. He said it will also contribute towards the achievement of Nigeria’s NDCs and the United Nations 2030 Sustainable Development Goals.
Managing director/chief executive officer of NCIC, Mr 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 include access to finance, capacity building, access to markets, prototype design, etc. for the Green MSMEs and financing organisations. 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,” he stated.