Development Bank of Nigeria (DBN) has achieved a significant milestone by obtaining accreditation from the Green Climate Fund (GCF), enabling it to access green financing for various sectors in Nigeria, including manufacturing. This accreditation marks a crucial step towards promoting sustainable development and combating climate change effects in the country.
Tony Okpanachi, Managing Director of DBN, emphasised the importance of this accreditation in a recent statement. He highlighted that this collaboration would strengthen Nigeria’s efforts to mitigate climate change impacts such as desertification, global warming, erratic rainfall patterns, storms, and floods.
Key Highlights of GCF Accreditation:
- Sector Coverage: The accreditation will support environmentally friendly technologies across multiple sectors, including agriculture, manufacturing, healthcare, education, transport, and logistics.
- Addressing Climate Threats: DBN recognises the existential threat posed by climate change to Nigerians, affecting livelihoods through:
- Depletion of livestock-grazing lands
- Rising sea levels are causing excessive flooding.
- Changing rainfall patterns are impacting agricultural yields.
- Poor water and air quality affects health.
- Significant biodiversity loss
- Expanded Capabilities: The GCF accreditation empowers DBN to:
- Develop and submit funding proposals for climate-related projects.
- Oversee project management and implementation.
- Deploy various financial instruments, including concessional loans, co-financing, and blended finance options.
- Private Sector Engagement: The accreditation enables DBN to mobilise private sector capital for climate change initiatives.
- Project Categories: The accreditation covers projects in various categories, including:
- Basic fiduciary standards
- Specialised fiduciary standards
- Project management
- On-lending and blending for loans
- Environmental and Social Safeguards Risk: Category B
- Medium-sized projects
In a related development, DBN recently hosted its annual flagship tech event, the 2024 DBN Techpreneur Summit 3.0, in Lagos. During this event, qualified techpreneurs were offered opportunities to secure financing deals, further demonstrating DBN’s commitment to fostering innovation and sustainable development in Nigeria.
This GCF accreditation positions the Development Bank of Nigeria as a key player in driving climate-resilient projects and sustainable financing in the country, aligning with global efforts to combat climate change and promote environmentally responsible economic growth.