Nigeria Secures €200m EIB Loan to Boost SME Financing, Green Economy Investments

By Àkànní Olúwaségún Michael

Nigeria has secured a €200 million financing loan from the European Investment Bank’s development arm, EIB Global, to expand access to credit for small and medium-sized enterprises (SMEs) and accelerate investments in the country’s green and digital economy.

The funding agreement was signed between EIB Global and the Development Bank of Nigeria (DBN) in Lagos, marking one of the latest efforts to address financing constraints facing businesses and support sustainable economic growth.

According to EIB Global, the facility will be channelled through participating financial institutions to provide long-term financing for Micro, Small and Medium Enterprises (MSMEs) and mid-sized businesses operating in strategic sectors including agriculture, renewable energy, digitalisation and innovation.

The bank said the initiative is designed to strengthen private sector development while supporting enterprises contributing to Nigeria’s transition towards a greener and more technology-driven economy.

“The European Investment Bank Group’s development arm, EIB Global and the Development Bank of Nigeria announced a €200 million financial partnership to support the development of small-scale investments of Nigerian enterprises contributing to Nigeria’s green and digital economy,” EIB Global said in a statement.

The institution noted that the financing would increase funding opportunities for businesses in renewable energy and agribusiness, sectors viewed as critical to economic diversification and sustainable development.

According to EIB Global, investments in agriculture are expected to improve productivity, strengthen local value chains and enhance food security, while renewable energy projects will support greater access to clean energy and improve climate resilience.

Speaking at the signing ceremony, EIB Vice-President Ambroise Fayolle said the partnership would enhance the competitiveness of Nigeria’s private sector and support inclusive growth.

“This partnership with the Development Bank of Nigeria will strengthen the competitiveness of Nigeria’s private sector, especially for SMEs in the green and digital sector,” Fayolle said.

“In supporting green projects and women entrepreneurs, we are also fostering inclusive growth and climate action. This is a powerful example of EIB’s real impact on the ground.”

For DBN, the facility represents an additional funding source aimed at addressing the long-standing challenge of limited access to affordable credit for small businesses.

DBN Managing Director and Chief Executive Officer, Dr Tony Okpanachi, described the agreement as a major milestone in the bank’s efforts to promote entrepreneurship and sustainable economic development.

“The €200 million investment from EIB Global is a significant milestone in our mission to drive Nigeria’s economic growth and sustainability,” Okpanachi said.

“By supporting local financial institutions and MSMEs in key sectors like agriculture, renewable energy, digitalisation and innovation, we’re empowering entrepreneurs and fostering a culture of sustainable innovation.”

He added that the partnership would help create jobs, improve livelihoods and support Nigeria’s transition to a more digitally enabled economy.

The financing comes at a time when businesses across Nigeria continue to grapple with high borrowing costs and limited access to long-term capital, factors that have constrained expansion and investment.

EIB Global disclosed that it has invested nearly €500 million in Nigeria’s private sector through various financing programmes, while its total investments in the country have reached approximately €2.3 billion since operations began in 1978.

The institution said its investments have supported projects across sectors, including sustainable transport, climate adaptation, agribusiness logistics, digital infrastructure, and SME financing.

Established in 2017, the Development Bank of Nigeria was created to address financing gaps affecting MSMEs through long-term funding, credit guarantees, and capacity-building support delivered via participating financial institutions.