The Development Bank of Nigeria (DBN) Plc has.signed a memorandum of understanding (MoU) with its partners to fund green projects for small and medium enterprises (SMEs) in Nigeria.
The MloU was signed on Wednesday in Lagos with the Financial Centre for Sustainability Lagos (FC4S Lagos) and Nigeria Climate Innovation Center (NCIC) as part of efforts to consolidate the global initiative on climate change and environmental sustainability.
The Bank said the partnership would see DBN play the role of a funding partner for green projects across Nigeria, whilst the NCIC and FC4SL would serve as Service Providers.
The goal of the MoU would be to create a dedicated fund for green projects within the Micro, Small, and Medium Scale Enterprises (MSMEs) 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 Bank said.
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 developing the ecosystems for the financing of Green MSMEs, reviewinh 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, the partnership would ensure project verification towards compliance with globally accepted taxonomy/sustainability principles and standards.
As a funding partner, DBN would 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.