DBN, FC4S LAGOS, NCIC to finance green SMEs projects
From Uche Usim, Abuja
Development Bank of Nigeria (DBN) Plc, Financial Centre for Sustainability Lagos (FC4S Lagos) and the Nigeria Climate Innovation Center (NCIC) have signed a Memorandum of Understanding (MoU) to fund green projects in Nigeria, a move consistent with global action on climate change and environmental sustainability.
The event, which took place at the DBN Head Office in Lagos on Tuesday, will see DBN play the role of a funding partner for green projects across Nigeria, while 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 of the provision of finance for Green MSMEs in Nigeria. 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 Mr. Emmanuel Etaderhi, Executive Secretary of FC4S Lagos, “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, Mr, Bankole Oloruntoba, MD/CEO of the NCIC 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 organizations. We are excited to collaborate with FC4S Lagos and DBN on this journey to scale the green ventures.
