MSME credit line with green window

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Although the Nigerian energy market is developing rapidly, the electricity supply is still inadequate, especially in rural areas. Reasons for this include the lack of maintenance of the energy supply infrastructure, power plant outages, oil resource shortages, and distribution and liquidity bottlenecks at energy suppliers. In addition, the energy shortage is causing private and commercial consumers to switch to diesel generators, which are often more expensive and environmentally harmful. Although there are currently opportunities to invest in energy efficiency (EE) and renewable energies (RE), these are limited and not adapted to the needs of micro, small and medium-sized enterprises (MSMEs). The aim of the project is therefore to expand a needs-based, efficient and sustainable range of medium to long-term financial services for investments in EE and RE by MSMEs. Loans are granted to microfinance companies and MSMEs for investments in EE and RE via partner financial institutions (PFIs) of the Development Bank of Nigeria (DBN). The measures financed in this way are intended to contribute to a reduction in CO2 emissions and energy consumption. These cost savings lead to a productivity gain, which in turn has a positive effect on the expansion of the business and the safeguarding and creation of jobs. Investments in renewable energy and renewables therefore not only offer the opportunity to make a contribution to climate protection, but also to contribute to sustainable economic growth in Nigeria. The accompanying measure is intended to expand and adapt the products and processes of the DBN and its PFI with regard to green finance. Furthermore, both the DBN and the PFI are to be supported in their monitoring - especially with regard to saving CO2 and energy - and to jointly develop activities to market the credit line.