This FAQ is intended to help project developers, businesses,
financial institutions, and the general public understand how
DBN mobilises climate finance for qualifying projects.
About the Green Climate Fund (GCF)
The Green Climate Fund (GCF) is one of the world's largest dedicated climate finance mechanisms,
channelling concessional capital to developing countries to support low-carbon and
climate-resilient development. DBN is one of a small number of Nigerian institutions
that holds Direct Access Entity (DAE) status with the GCF. As a DAE, DBN originates,
structures and submits GCF funding proposals for qualifying projects and bears full
fiduciary responsibility for all GCF-funded activities it sponsors.
To be eligible, projects must have a clear climate rationale and fall within DBN's MSME mandate.
Projects are assessed against DBN's climate eligibility criteria covering climate relevance and
GCF funding threshold before being considered for the programme pipeline.
Yes - through DBN's climate finance programme. DBN deploys climate finance to eligible MSMEs
primarily through Participating Financial Institutions (PFIs). In some cases, DBN may also
provide financing directly to eligible projects through its direct lending window, subject
to DBN's eligibility and credit assessment.
Yes - but not as a passthrough. DBN does not forward third-party proposals to GCF. As a DAE,
DBN structures and submits GCF funding proposals and takes on full responsibility for every activity it sponsors.
This means that for a project to access GCF financing through DBN, it must first pass DBN's eligibility assessment
and be incorporated into DBN's climate finance programme pipeline.
The GCF's Project Preparation Facility (PPF) provides grant support to develop
concepts into full funding proposals. DBN cannot accept or process PPF requests
from external parties. However, DBN may access GCF project preparation support
only for projects it has selected to develop. Submit your concept through the
portal first; if your project is assessed as eligible and strategically aligned,
DBN will determine whether to initiate a PPF request for the project.
About DBN's Climate Finance Programme
It is a dedicated programme being developed by DBN to channel affordable capital
to Nigerian MSMEs investing in climate solutions, while building the market conditions
for climate finance to scale. Financing is deployed through DBN's Participating
Financial Institutions (PFIs) and, for eligible transactions, directly by DBN.
Alongside the lending facility, the programme includes technical assistance to
strengthen PFI capacity to originate and manage climate loans, and to support
MSMEs in accessing climate finance.
The programme is open to both public and private sector applicants, with a primary
focus on Nigerian MSMEs operating in climate-relevant sectors.
This includes businesses investing in solar energy, energy-efficient
equipment or climate-adapted farming. Please refer to DBN’s Eligibility
Criteria for other qualifying sectors. Women-owned and women-led enterprises
are specifically targeted, with a minimum of 30% of financing reserved for
this group.
A climate project is one where the financing directly enables a measurable reduction in greenhouse gas emissions, an improvement in resilience to climate-related risks, or both. DBN assesses climate impact across three recognised categories:
Mitigation impact - the project reduces or avoids greenhouse gas emissions. This includes switching from diesel generators to solar power, deploying energy-efficient equipment, electrifying transport, or adopting low-emission agricultural practices. The connection between the investment and the emissions reduction must be direct and credible.
Adaptation impact - the project reduces the vulnerability of people, businesses, or assets to climate-related risks such as drought, flooding, extreme heat, or irregular rainfall. Examples include drought-tolerant crop systems, flood-resilient infrastructure, water harvesting and storage, and climate-informed irrigation. The climate risk being addressed must be identifiable and the investment must demonstrably reduce exposure to it.
Cross-cutting impact - some projects deliver both mitigation and adaptation outcomes simultaneously. A solar-powered irrigation system, for example, displaces diesel (mitigation) while also securing water access during dry seasons (adaptation). Projects with cross-cutting impact are encouraged, as they tend to be stronger candidates under international climate finance standards.
DBN primarily provides debt financing in NAIRA to support climate-aligned investments.
This is typically delivered through its network of Participating Financial Institutions (PFIs),
such as commercial banks and financial intermediaries. For eligible transactions,
DBN may also provide financing directly to projects through its direct lending window.
At this stage, DBN is not in a position to provide grant or equity financing.
Submit your concept through the online portal on this website.
The portal collects basic information about your project, organisation and
financing needs, and routes it to the relevant department for review.
You will receive an acknowledgement with a unique reference number upon
submission.
All submissions receive an automated acknowledgement. The Climate Finance Unit then
conducts an initial screening for eligibility and climate alignment.
If your submission passes the initial screen, you will be contacted to discuss next steps.
Initial feedback is typically provided within 2–4 weeks, depending on project complexity.
Climate credentials are necessary but not sufficient. DBN requires projects to demonstrate meaningful
co-financing – funding required must be additional to, and leveraged by, other sources of capital.
Private sector applicants in particular should expect to bring co-investment from their own balance sheet,
a commercial bank or another development partner. Projects seeking 100% financing from DBN or
GCF are unlikely to meet additionality standards required by international climate funds.
Not every project that is submitted will proceed to financing and we understand this can be disappointing. DBN reviews all submissions against a consistent set of criteria. Below are the most common reasons a project may not be selected:
Weak or unclear climate rationale.
Type of financing requested is not currently available.