The African Development Bank Group has approved a $61 million financing package for the Development Bank of Nigeria to increase access to affordable credit for women-owned and women-led businesses in Nigeria, especially in agriculture. The package includes a $50 million gender-focused line of credit, an $8 million concessional facility under the Agri-Food SME Catalytic Financing Mechanism, and a $3 million grant under the Affirmative Finance Action for Women in Africa initiative. The grant is funded by the Women Entrepreneurs Finance Initiative. Dr. Abdul Kamara, Director-General of the AfDB Nigeria Country Office, disclosed the approval on Friday. He described women entrepreneurs as one of Nigeria's greatest economic assets and one of its most underleveraged. The financing combines long-term funding, concessional resources, partial credit guarantees, and capacity-building support. It will be distributed through DBN's network of participating financial institutions to strengthen lending to micro, small, and medium enterprises. The initiative aligns with AfDB's goals of narrowing the gender financing gap in Africa. The fund aims to advance Nigeria's inclusive economic transformation by supporting women entrepreneurs in sectors including agriculture, clean energy, and healthcare. According to the bank, the approach supports private sector-led growth and leverages existing financial infrastructure. The operation is designed to unlock economic opportunities for women through targeted financial support.
The AfDB touts unlocking women's economic potential while routing funds through a state-owned bank that has not demonstrated transparent lending practices. The $50 million gender-focused credit line assumes women will access funds equitably, despite systemic barriers in financial distribution networks. If the DBN's existing frameworks fail to prioritize women-led businesses, the financing may reinforce rather than reduce disparities. The success of the package hinges not on allocation but on accountable disbursement.
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