The European Investment Bank has provided a €200 million financing facility to the Development Bank of Nigeria to improve access to credit for small and medium-sized enterprises and mid-sized companies across the country. The agreement, announced on June 18, is designed to support business growth, competitiveness and job creation in Nigeria.
The funding will target enterprises operating in strategic sectors such as agriculture, renewable energy, digitalization and innovation. These areas are considered important for Nigeria’s economic transformation, food security, climate resilience and transition toward a more sustainable and digitally enabled economy.
A significant portion of the facility will be directed toward women-led enterprises. This focus aims to promote inclusive economic growth by improving financing access for women entrepreneurs, who often face greater barriers in securing affordable and long-term credit.
The partnership supports the Development Bank of Nigeria’s wider goal of helping businesses expand, create jobs and contribute to national development. DBN Managing Director Tony Okpanachi said the facility aligns with the bank’s vision of supporting green growth, digital transformation and an innovation-driven economy.
SMEs are a major part of Nigeria’s economy, accounting for about 96 percent of businesses. They play a central role in employment, innovation, local enterprise development and national output, but many continue to face serious financing challenges.
Limited access to long-term credit remains one of the biggest barriers for Nigerian SMEs. Banks often consider smaller businesses risky because of collateral requirements, economic uncertainty and repayment concerns, making it difficult for many firms to secure the capital they need to grow.
The new EIB-DBN facility aims to reduce this financing gap by expanding credit availability for businesses with strong growth potential. By supporting SMEs in agriculture, clean energy, digital services and innovation, the programme can help improve productivity, strengthen resilience and support broader economic development.
Overall, the €200 million financing agreement represents an important step in strengthening Nigeria’s SME ecosystem. It is expected to support inclusive growth, improve access to finance, empower women entrepreneurs and help businesses invest in sectors that are critical to Nigeria’s future economy.
