95% of total facility earmarked for female entrepreneurs in Agriculture, Health, and Energy.
* Package includes $50m credit line, $8m Agri-food facility, and $3m technical grant.
*AfDB DG, Kamara: ‘We are investing in the engine of Nigeria’s economic transformation.’
In a move to bridge the multi-billion dollar credit gap facing female entrepreneurs in Nigeria, the Development Bank of Nigeria (DBN) has secured a $61 million (approximately ₦87 billion) financing package from the African Development Bank (AfDB) Group.
The strategic partnership, announced on Tuesday, is specifically engineered to dismantle the systemic barriers that have historically limited access to capital for women-owned and women-led Micro, Small, and Medium Enterprises (MSMEs) across the federation.
The $61 million facility is structured into three specialized tiers to ensure maximum impact across the value chain. The lion’s share, a $50 million gender-focused line of credit, will be deployed for direct lending. This is bolstered by an $8 million concessional facility under the Agri-Food SME Catalytic Financing Mechanism and a $3 million grant supported by the Affirmative Finance Action for Women in Africa (AFAWA) initiative—a program backed by the Women Entrepreneurs Finance Initiative (We-Fi).
Crucially, the AfDB confirmed that over 95 per cent of the total financing is strictly earmarked for women-led businesses. The intervention targets high-impact sectors including agriculture, clean energy, and healthcare, which are considered the backbones of Nigeria’s local economy.
According to a statement from the DBN, the funds will be channeled through its extensive network of Participating Financial Institutions (PFIs). These commercial banks and microfinance institutions are expected to on-lend to eligible MSMEs, combining the long-term capital with partial credit guarantees and technical assistance to ensure business sustainability.
Speaking on the development, Dr. Abdul Kamara, Director-General of the AfDB’s Nigeria Country Office, emphasized that the initiative is about more than just providing loans; it is about economic inclusion.
“Women entrepreneurs remain a critical but significantly under-served segment of the Nigerian economy,” Dr. Kamara stated. “This operation reflects the African Development Bank’s commitment to unlocking economic opportunities for women. By working through the DBN, we are not just expanding access to credit; we are investing in the engine of Nigeria’s inclusive economic transformation.”
Financial analysts have lauded the move, noting that while MSMEs contribute nearly 50% of Nigeria’s GDP, women-led businesses often face higher interest rates and more stringent collateral requirements. The $3 million grant component, in particular, is expected to provide the “soft landing” of technical training and capacity building, helping female entrepreneurs scale their operations from subsistence levels to competitive enterprises.
This latest facility further cements the long-standing synergy between the AfDB and the DBN. Since its inception, the DBN has positioned itself as a wholesale developmental vehicle, and this $61 million injection is set to significantly increase the share of women-focused lending within its overall portfolio.
With the deployment of these funds, the DBN aims to catalyze private sector-led growth, ensuring that the next generation of Nigerian female business leaders has the financial backing to compete on a global stage.
