The Development Bank of Nigeria (DBN) has achieved a significant milestone by securing accreditation from the Green Climate Fund (GCF).
This accreditation enables DBN to access up to $250 million in funding for climate change projects, positioning it as the first Direct Access Entity (DAE) in Nigeria.
As a DAE, DBN gains direct access to GCF resources without the need for intermediaries. Initially, DBN will utilise the accreditation to provide loans and project management support. However, the bank plans to expand its offerings to include grants, investments, and guarantees in the near future.
The GCF funds will be utilised to support climate mitigation and adaptation projects in Nigeria, aligning with the country’s Nationally Determined Contributions (NDCs). These projects will focus on critical sectors such as agriculture, manufacturing, healthcare, education, transportation, and logistics, driving sustainable development and climate resilience in Nigeria.
The Green Climate Fund (GCF) resources will be administered at highly concessionary rates, with the Development Bank of Nigeria (DBN) collaborating closely with the Nigerian Climate Change Council (NCCC) to select, appraise, and align projects with Nigeria’s Nationally Determined Contributions (NDCs).
Shortlisted projects will require detailed funding proposals to be submitted to the GCF for approval, ensuring alignment with Nigeria’s climate priorities.
DBN Managing Director, Dr. Tony Okpanachi, emphasised the significance of this accreditation in addressing Nigeria’s climate change challenges, including desertification, flooding, and unpredictable weather patterns. He highlighted the opportunities for greater climate change awareness, promoting green economy practices, and attracting additional climate finance to Nigeria.
With this accreditation, DBN is now empowered to develop and submit funding proposals, oversee project management and implementation, deploy financial instruments like concessional loans and co-financing, and mobilise private sector capital for climate change initiatives. This enables DBN to play a critical role in supporting Nigeria’s climate resilience and sustainable development efforts.
The accreditation covers projects “under the categories of basic fiduciary standards, specialised fiduciary standards, project management, on-lending and/or blending for loans, and medium-sized projects categorised under ESS Risk: Category B”.
The Green Climate Fund (GCF) is the world’s largest dedicated fund aimed at helping small island states, least developed countries, and developing nations reduce their greenhouse gas emissions and enhance their resilience to climate change. The GCF channels climate finance to these countries and invests in their adaptation and mitigation activities through a portfolio of projects implemented by Accredited Entities. These entities, including DBN as a newly accredited DAE, develop funding proposals and oversee the management and monitoring of GCF-approved projects.
The GCF, as the world’s largest dedicated climate fund, supports developing countries in reducing greenhouse gas emissions and building resilience to climate change. DBN’s accreditation empowers the bank to develop and implement climate-focused projects, leveraging its expertise in financial intermediation.
“This achievement marks a significant milestone for Nigeria in its efforts to address climate change and achieve sustainable development” Okpanachi said.