•Says each SME can get up to $250m

By  Emma Ujah, Abuja Bureau Chief  

The Development Bank of Nigeria Plc (DBN) has received the Green Climate Fund (GCF) Accreditation, becoming the first Direct Access Entity (DAE) and the only authorized Nigerian channel for accessing green financing from the GCF.  

GCF created by the United Nations Framework Convention on Climate Change (UNFCCC) to boost global response to climate change has over $100 billion   to give out to businesses across the globe.

In a chat with journalists in Abuja, yesterday,   the Managing Director (MD) of DBN, Dr. Tony Okpanachi, described the accreditation as an extraordinary opportunity for Nigerian SMEs, in particular and the nation’s economy, in general.  

He disclosed that individual benefiting SMEs could receive as between $50 million to $250 million loan under the arrangement.

DBN, he added, would  access the GCF fund for on-lending,  blending with other  funds sources for lending or project management.

The MD further noted, “With the accreditation, the DBN is empowered to develop and submit funding proposals for projects and programmes, oversee management and implementation of projects and programmes, deploy a range of financial instruments such as concessional loans, co-financing and blending for loans and mobilize private sector capital for such climate change initiatives.”

He explained that the accreditation covers projects that fall under the categories of basic fiduciary standards, specialized fiduciary standards, project management, on-lending and/or blending for loans, ESS Risk: Category B and medium-sized projects.

Okpanachi said DBN’s accreditation by GCF,   would benefit Nigeria in many ways adding, “Through this collaboration, Nigeria will receive a boost in its fight against the effects of climate change (desertification, global warming, unpredictable rainfall patterns, storms, floods) as well as assist the country’s efforts towards achieving sustainable development, promotion of environmentally friendly technologies in key sectors of the economy including agriculture, manufacturing, healthcare, education, transport and logistics etc.

“It will also help create greater awareness on climate change, culminating in greater involvement of Nigerians in climate actions prompting a shift towards green economy as well as raise the Nigerian portfolio in climate financing globally, and unlocking more climate funds.

The Green Climate Fund (GCF) is the world’s largest dedicated fund helping Small Island states, and least developed and developing countries reduce their greenhouse gas emissions and enhance their ability to respond to climate change.

It does this by channelling climate finance to developing countries and investing in their adaptation and mitigation activities through a project portfolio that is implemented by its partner organizations, known as Accredited Entities.

These Accredited Entities, which can either be International Accredited Entities or Direct Access Entities (DAEs), develop funding proposals to be considered by the GCF. They also oversee, supervise, manage, and monitor their respective GCF-approved projects.