The African Development Bank Group has approved a $61 million financing package for the Development Bank of Nigeria to expand access to credit for women-owned and women-led businesses, particularly in agriculture and other underserved sectors.
The funding package, approved by the bank’s board, includes a $50 million gender-focused credit facility, an $8 million concessional financing support under the Agri-Food SME Catalytic Financing Mechanism, and a $3 million grant through the Affirmative Finance Action for Women in Africa initiative funded by the Women Entrepreneurs Finance Initiative.
According to the AfDB, the financing will be channelled through participating financial institutions working with the Development Bank of Nigeria to improve lending access for Micro, Small and Medium-sized Enterprises across the country.
The bank disclosed that more than 95 per cent of the intervention is specifically targeted at women-owned and women-led businesses, reflecting increasing efforts to close the financing gap affecting female entrepreneurs in Nigeria.
Speaking on the development, the Director-General of the AfDB Nigeria Country Office, Abdul Kamara, described women entrepreneurs as critical to Nigeria’s economic growth but largely underserved in access to finance.
He said the initiative would help expand affordable credit to businesses operating in sectors such as agriculture, healthcare, and clean energy, while also supporting inclusive economic growth.
The financing structure combines long-term loans, concessional funding, partial credit guarantees, and technical assistance aimed at making lending more accessible and affordable for small businesses.
Access to credit remains one of the biggest challenges facing small businesses in Nigeria, especially those led by women, amid high commercial lending rates and tight monetary conditions.
Development finance institutions have increasingly introduced intervention programmes to support women-led enterprises, many of which struggle with limited collateral, smaller asset bases, and weak access to formal financial services.
The AfDB stated that performance-based incentives under the AFAWA programme are expected to increase the number of women-owned businesses eligible for financing while boosting women-focused lending within the Development Bank of Nigeria’s MSME portfolio.
The latest approval also strengthens the existing partnership between the AfDB and the Development Bank of Nigeria, which the continental lender previously supported through equity investments, governance support, and long-term financing initiatives.
Nigeria continues to pursue policies aimed at boosting financial inclusion, supporting entrepreneurship, and diversifying the economy beyond oil, with agriculture remaining one of the country’s largest employers despite persistent funding constraints facing smaller operators.
The AfDB said the initiative aligns with its long-term strategy for inclusive growth, private-sector development, and women’s economic empowerment across Africa.
