The African Development Bank Group (AfDB) has approved a $61 million financing package for the Development Bank of Nigeria (DBN) to expand access to affordable credit for women-owned and women-led micro, small and medium enterprises (MSMEs) in Nigeria.
This was made known in a statement on AfDB’s website on Friday.
The facility, the AfDB said, is aimed at addressing persistent financing gaps facing women entrepreneurs and strengthening inclusive private sector growth in Nigeria.
What the AfDB is saying
The approved financing package is structured across three instruments designed to deepen MSME lending and support women-led businesses. These include:
- $50 million gender-focused line of credit;
- $8 million concessional facility under the Agri-Food SME Catalytic Financing Mechanism (ACFM); and
- $3 million grant under the Affirmative Finance Action for Women in Africa (AFAWA) initiative, funded by the Women Entrepreneurs Finance Initiative (We-Fi).
According to the statement, more than 95% of the total package is specifically targeted at women-owned and women-led MSMEs.
The funds will be channelled through DBN’s network of participating financial institutions to improve access to credit and expand lending capacity to MSMEs across Nigeria.
More Insights
The AfDB said the structure of the facility combines long-term financing, concessional funding, partial credit guarantees, and technical assistance to strengthen Nigeria’s MSME ecosystem.
- The programme prioritises women entrepreneurs in agriculture, clean energy, healthcare, and other sectors
- Performance-based incentives under AFAWA are expected to increase the number of eligible women-owned enterprises
- The intervention aims to increase the share of women-focused lending within DBN’s MSME portfolio
- The initiative supports private sector-led growth and inclusive economic transformation
Dr. Abdul Kamara, Director General of the African Development Bank Group Nigeria Country Office, described women entrepreneurs as a key but underutilised economic resource.
- “This operation reflects the African Development Bank’s commitment to unlocking economic opportunities for women.”
- “By working through DBN… we are not just expanding access to credit; the Bank is investing in the engine of Nigeria’s inclusive economic transformation.”
The new financing package deepens the long-standing partnership between the African Development Bank and the Development Bank of Nigeria, which dates back to DBN’s establishment with support from AfDB and other development partners.
What you should know
In November, AfDB approved a $500 million loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme.
As of 31 October 2025, the AfDB’s active portfolio in Nigeria consisted of 52 projects valued at $5.1 billion.
In 2025, DBN stated it was scaling up its commitment to Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) sector, with plans to grow its outstanding loan portfolio to over N1.8 trillion as part of its new five-year strategic plan.
