The Development Bank of Nigeria (DBN) has secured a $61 million financing facility from the African Development Bank (AfDB) to scale lending to women-owned micro, small, and medium-sized enterprises (MSMEs) across Nigeria, in a move aimed at deepening financial inclusion and supporting economic growth.
The facility is expected to strengthen access to credit for female entrepreneurs, a segment widely regarded as underserved despite its growing contribution to Nigeria’s economy. Industry analysts say the initiative could help narrow the financing gap facing women-led businesses, which continue to encounter structural barriers in accessing affordable capital.
DBN said the funding will be channelled through participating financial institutions, enabling commercial banks and microfinance institutions to extend more flexible and affordable loans to eligible businesses. The lender added that the initiative aligns with broader efforts to stimulate job creation, expand entrepreneurship, and improve productivity within Nigeria’s MSME ecosystem.
MSMEs account for a significant share of economic activity in Nigeria and remain a major source of employment. However, many small businesses, particularly those owned by women, struggle with limited collateral, high borrowing costs, and restricted access to formal financial services. Development finance institutions have increasingly identified gender-focused lending as a strategic priority for boosting inclusive growth across Africa.
The AfDB facility comes as Nigeria continues to face tight financial conditions driven by elevated interest rates, inflationary pressures, and currency volatility. Economists say targeted intervention funding could provide a critical lifeline for smaller enterprises seeking working capital and expansion financing amid a challenging operating environment.
The transaction also underscores the growing role of multilateral development institutions in supporting private sector financing in Africa’s largest economy. Over recent years, the AfDB has expanded its support for initiatives tied to women’s economic empowerment, sustainable development, and SME financing across the continent.
Market observers note that improving access to finance for women-led enterprises could have broader economic implications, including higher labour participation, increased household income, and stronger business resilience. According to development finance experts, empowering women entrepreneurs remains central to unlocking productivity gains and reducing poverty levels in emerging markets.
DBN has continued to position itself as a key development finance institution focused on bridging funding gaps in Nigeria’s financial system. The latest facility is expected to complement existing government and private-sector initiatives designed to improve credit access for underserved businesses and accelerate inclusive economic development.
Analysts say successful implementation of the programme will depend on efficient loan disbursement, transparent monitoring mechanisms, and the ability of participating lenders to reach businesses in both urban and rural communities.
