The Development Bank of Nigeria,DBN, Financial Centre for Sustainability Lagos,FC4S Lagos and Nigeria Climate Innovation Center, NCIC have signed an MoU to fund green projects in Nigeria.
This is as part of a global initiative on climate change and environmental sustainability.
The MoU signing which took place at the DBN Head Office in Lagos, will 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 of the MoU is to create a dedicated fund for green projects within the Micro, Small, and Medium Scale Enterprises, SMEs ecosystem.
This will ensure that the MSMEs have access to finance to execute climate-resilient and green projects in support of 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 to the provision of finance for Green MSMEs in Nigeria.
Areas of Collaboration
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.
Also In addition are 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.
According to the Executive Secretary of FC4SLagos, 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 as this will contribute towards the achievement of Nigeria’s NDCs and the United Nations’ 2030 Sustainable Development Goals.
Speaking on the MoU, MD/CEO of NDIC, 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.
Also commenting, the Executive Director, Finance & Corporate Services, DBN Mrs.
Ijeoma Ozulumba, said they were excited about the partnership as it aligned with their mandate as development finance institution and with their corporate values.
She further stated 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 would promote climate action and accelerate sustainable socio economic development in areas such as technology, agriculture, health, education and job creation.
Four Institutions sign MOU on SMEs Projects