DBN, AfDB Sign $61 Million Deal to Expand Funding for Women Entrepreneurs

The Development Bank of Nigeria (DBN) and the African Development Bank (AfDB) have signed a $61 million financing agreement designed to improve access to funding for women-owned and women-led businesses across Nigeria.

The agreement, reported on October 22, builds on a financing package previously approved by the AfDB to support women entrepreneurs and smaller businesses operating in sectors including agriculture, healthcare, clean energy and other areas of economic activity.

The financing package comprises a $50 million gender-focused line of credit, an $8 million concessional facility for agricultural small and medium-sized enterprises, and a $3 million grant linked to the AfDB's Affirmative Finance Action for Women in Africa initiative.

The funding is intended to help address a persistent challenge for women entrepreneurs: securing affordable finance to expand their businesses, invest in equipment, hire workers and reach new markets.

Alongside the agreement, DBN launched DAWN, short for DBN Action for Women in Nigeria. The initiative is intended to combine access to financing with additional forms of support, including credit guarantees, grants, business development assistance and improved market access.

The programme's approach recognises that access to loans alone may not resolve the difficulties many small businesses face. Business owners may also need financial training, stronger distribution networks, market information and help building sustainable operations.

The financing is expected to be channelled through participating financial institutions, which will provide support to eligible enterprises under the programme's terms.

For women-owned businesses, the key question will be how effectively the funds reach enterprises that need them, how eligibility is determined and whether the support translates into measurable business growth and job creation, and how development finance can empower women entrepreneurs and small business owners.

The initiative represents a significant development in efforts to widen financing opportunities for women entrepreneurs. Its long-term impact will depend on implementation, transparency and the ability of participating institutions to reach businesses across different sectors and locations.