Nigeria Launches US$275M Climate Finance Programme for MSMEs

The Development Bank of Nigeria has launched a US$275M programme aimed at supporting micro, small and medium-sized enterprises (MSMEs) in climate finance. The programme, known as the DBN Enterprise Lending for Transition and Adaptation (DELTA), was unveiled at the Nigeria Pavilion during the 31st UN Climate Change Conference (COP31) in Antalya, Türkiye, on 13 November 2026. This initiative is one of the largest structured climate-finance efforts targeting Nigerian MSMEs.

The DELTA programme targets three core barriers faced by MSMEs: high upfront costs, collateral constraints and limited access to suitable credit. To address these challenges, the programme combines direct lending with risk-sharing tools and technical assistance. This structure allows firms that cannot meet conventional lending requirements to access finance. Eligible activities under the programme include renewable energy projects, energy-efficient equipment, climate-resilient agriculture and other operations that cut emissions or improve resilience.

The Green Climate Fund contributes US$100M to the total US$275M facility, with affordable, longer-term tenors at the heart of the design. Smaller firms in Nigeria frequently face short loan periods and elevated borrowing costs that price them out of climate investment. The programme's design addresses these issues, providing a framework for financial intermediaries to reach smaller-scale projects. This approach enables climate finance to move beyond utility-scale schemes and large industrial borrowers.

The DELTA programme is expected to benefit about 1.3 million MSMEs and reduce emissions by approximately 4.5 million tonnes of CO₂ equivalent. The programme's reach depends on lending partners, project preparation and the quality of risk-sharing arrangements. By channelling long-term capital into clean energy, climate-resilient agriculture and lower-carbon operations, the programme aims to support Nigerian businesses in transitioning to a more sustainable and climate-resilient economy.

The facility opens channels across clean power, distributed energy and climate-smart farming, and suppliers of efficient machinery, recycling systems and low-carbon equipment may also benefit. Investors will watch the programme's implementation closely, as its success depends on various factors, including lending partners and project preparation. The programme's structure links concessional capital with a broad commercial market, which could standardise climate lending for Nigerian MSMEs.

The DELTA programme mirrors ambitions tracked across the continent, including Mozambique's US$37.2B climate resilience need. Nigeria's ability to turn small-business demand into investable portfolios will determine how much of that potential is realised. The programme may attract further funding if early disbursements show strong repayment and measurable climate results. Investors and policymakers should track the programme's progress and outcomes.

The iDICE CANEX Deal Room offers a parallel example of structured finance reaching Nigerian SMEs through development channels. The DELTA programme's success could provide a model for other countries to follow, and its impact on Nigeria's climate finance landscape will be closely monitored. As the programme moves forward, its ability to support MSMEs in transitioning to a more sustainable and climate-resilient economy will be crucial in achieving its goals and reducing emissions.

Key points

• The DELTA programme targets about 1.3 million MSMEs and aims to reduce emissions by approximately 4.5 million tonnes of CO₂ equivalent.
• The programme combines direct lending with risk-sharing tools and technical assistance to address the challenges faced by MSMEs.
• The Green Climate Fund contributes US$100M to the total US$275M facility.