Yemisi Izuora
Small and medium-sized enterprises (SMEs) across Nigeria are expected to witness significant progress in credit financing after the Development Bank of Nigeria (DBN) and the European Investment Bank (EIB) signed a €200 million ($229.2 million) financing agreement to improve access to credit that lawyer of business operations. The agreement, aims to strengthen financing for micro, small and medium-sized enterprises as well as mid-sized companies. The facility will support businesses operating in strategic sectors, including agriculture, renewable energy, digitalization and innovation.
In addition, the programme will dedicate a significant share of funding to women entrepreneurs. The partners aim to promote inclusive economic growth, strengthen food security and support projects that reduce carbon emissions while improving climate resilience in vulnerable communities.
“This partnership underscores DBN’s commitment to accelerating Nigeria’s transition toward a sustainable, innovation-driven and digital economy, creating jobs and improving living standards. It aligns with DBN’s vision of supporting green growth and digital transformation,” said Tony Okpanachi, Managing Director of the Development Bank of Nigeria.
SMEs account for approximately 96% of businesses in Nigeria and play a central role in economic development and job creation. These enterprises drive innovation, support local economies and contribute significantly to national output. However, many SMEs continue to face difficulties accessing long-term financing.
A persistent funding gap remains a structural challenge for the sector. Banks often cite elevated credit risk, collateral requirements and broader economic uncertainty as key constraints on lending. As a result, many businesses struggle to secure the capital required to expand operations, invest in productivity improvements and scale their activities.
Limited access to financing continues to restrict the growth potential of Nigerian SMEs. The funding shortfall undermines business sustainability, reduces competitiveness and limits the sector’s ability to generate wealth and employment on a larger scale.