AGF, Nordic Development Fund Collaborate to Tackle Green SME Funding, Climate Challenges in Nigeria

Nume Ekeghe

The African Guarantee Fund (AGF) has joined forces with the Nordic Development Fund (NDF) to tackle the pressing issues of green SME funding and climate challenges in Nigeria.

This collaboration marks a significant step towards fostering sustainable development and combating climate change in the region. As part of their joint effort, they hosted the 9th Edition of the Green Finance Conference in Lagos themed, “The Role of Africa’s Private Sector in the Paris Agreement on Climate Change,” which convened government representatives, senior executives from financial institutions, key regulatory-policy stakeholders, and green SMEs to deliberate on strategies for enhancing green synergies and advancing sustainable finance practices.

Speaking at the Opening Ceremony, AGF Group Chief Executive Officer, Jules Ngankam emphasised that the Green Finance Conference is a crucial response to the challenges posed by climate change within a framework of National Determined Contributions (NDC) with a focus on providing enhanced expertise to Africa while proposing practical solutions to addressing financing for smaller and medium-sized enterprises committed to green growth and climate-resilient development.

“Our aim is to support the banks to improve, increase or develop their green portfolios.  Through the combination of our Green Guarantee and Capacity Development support, we are able to bridge the knowledge gap between both financial institutions and their customers. This is not only for the SMEs to understand how the lending process works, but also for the financial experts to learn how they can provide solutions tailored to suit the needs of the SMEs,” Jules said.

Backed by NDF’s support, AGF has been able to support financial institutions through its risk-sharing mechanism, which is crucial to incentivizing banks to provide climate finance to SMEs.

NDF Managing Director, Satu Santala said: “We are committed to financing green and inclusive low-carbon and climate resilient growth of African economies to improve the livelihood of communities. Partnerships are at the core of NDF’s approach to climate finance and the African private sector plays a pivotal role in climate action and creating employment.”

The President of the Chartered Institute of Bankers of Nigeria, Dr. Kenneth Opara, in his welcome address, noted the important role the private sector plays in climate change in the Paris Agreement, emphasizing that the private sector plays a pivotal role in unlocking new growth, job creation and sustainable agriculture.

Opara said, ‘’We hope that climate change efforts will unlock new opportunities for green growth and job creation, ranging from renewable energy and clean technology to sustainable agriculture. There are countless avenues for the private sector to get the required private solution that deliver environmental, social, and economic benefits”.

Special Adviser to The Lagos State Government on Climate Change and Circular Economy, Mrs. Titilayo Oshodi, speaking on behalf of the Secretary to the State Government, noted the need for more awareness of on effects of climate change. “It is a resultant factor in how we begin to deal with our environment, how we begin to play, what shots are required of us to keep our environment healthy, to keep it safe and climate friendly. We need to start to express the inherent opportunities in terms of wealth that is available in the wealth that we generate.”