Key points
- Nigeria has secured a €200 million financing agreement from the European Investment Bank (EIB) to support SMEs and MSMEs.
- The facility will be channelled through the Development Bank of Nigeria (DBN) to promote green growth, renewable energy and digital innovation.
- At least 30 per cent of the funding is reserved for women-led businesses to advance financial inclusion and entrepreneurship.
Main story
Nigeria has secured a €200 million financing agreement with the European Investment Bank (EIB) aimed at expanding access to finance for small and medium-sized enterprises (SMEs) and micro, small and medium-sized enterprises (MSMEs) across the country.
The five-year facility will be administered through the Development Bank of Nigeria (DBN) and is designed to support businesses operating in key sectors driving economic transformation, including renewable energy, green growth initiatives and digital innovation.
The financing arrangement is expected to strengthen private sector development by providing much-needed capital to businesses seeking to expand operations, improve productivity and create employment opportunities.
The intervention also aligns with Nigeria’s broader economic diversification agenda and efforts to build a more resilient and sustainable economy.
The issues
Access to affordable financing remains one of the biggest challenges facing SMEs and MSMEs in Nigeria, limiting business growth, innovation and job creation.
Many small businesses continue to struggle with high borrowing costs, limited access to credit facilities and inadequate funding required for expansion.
The challenge is particularly significant for enterprises operating in emerging sectors such as renewable energy, digital technology and climate-focused businesses, where access to long-term financing is critical for growth and sustainability.
Women-owned businesses have also historically faced barriers in accessing formal credit, affecting their ability to scale operations and contribute fully to economic development.
What’s being said
According to details of the agreement, the facility is specifically structured to support enterprises that are driving green growth, digital transformation and sustainable economic development.
The initiative places strong emphasis on inclusive financing, with a minimum of 30 per cent of the funds allocated to women-led businesses.
Stakeholders say the arrangement will enhance entrepreneurship, stimulate job creation and improve financial inclusion while supporting Nigeria’s transition to a low-carbon and technology-driven economy.
The funding is also expected to strengthen the capacity of the Development Bank of Nigeria to provide long-term financing support to eligible businesses through participating financial institutions.
What’s next
The Development Bank of Nigeria is expected to begin deploying the facility through its network of participating financial institutions, enabling eligible SMEs and MSMEs to access financing under the programme.
Businesses operating in renewable energy, digital technology, climate-smart enterprises and other growth sectors are expected to be among the major beneficiaries.
Implementation of the facility will also be closely monitored to ensure that the funding reaches targeted enterprises, particularly women-owned businesses and firms contributing to sustainable economic development.
Bottom line
The €200 million financing agreement between Nigeria and the European Investment Bank represents a significant boost for the country’s SME ecosystem. By expanding access to finance for businesses driving innovation, sustainability and digital transformation, the facility is expected to support job creation, strengthen private sector growth and advance Nigeria’s long-term economic development objectives.
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