For Small and Medium-sized Enterprises (SMEs) operators in Nigeria, an opportunity to expand their businesses beyond the domestic market and compete across other African countries may have become more accessible, following a new $75 million financing arrangement between the African Export-Import Bank (Afreximbank) and the Development Bank of Nigeria (DBN).
The facility, which is expected to provide funding to eligible small businesses through DBN’s partner financial institutions, offers more than conventional business financing. It combines access to capital with capacity development, export-readiness support and opportunities to connect with buyers and markets across Africa and beyond.
For Nigerian SMEs, particularly those operating in the creative and manufacturing sectors, the arrangement could provide an important pathway to overcome some of the constraints that have prevented locally developed businesses from expanding beyond Nigeria.
The DBN will route the loan through its Participating Financial Institutions (PFIs) to fund eligible small businesses. The facility will support working capital, asset acquisition, pre-export, post-export and supply chain activities, with businesses in fashion, film, music, design and the wider creative industries among the intended beneficiaries.
The financing is particularly significant for SMEs because access to affordable and appropriate funding remains one of the major challenges confronting smaller businesses in Nigeria. Many entrepreneurs have viable products and services but struggle to secure the capital required to increase production, acquire modern equipment, meet large orders or develop the capacity to serve international customers.
Unlike large corporations with access to multiple financing options, smaller businesses often depend on personal savings, informal borrowing and commercial bank facilities that may be difficult to obtain or expensive to service.
For businesses seeking to enter export markets, the financing challenge can be even more complicated. Exporting requires resources to purchase raw materials, maintain production levels, meet quality standards, package products, handle logistics and manage the time between delivering goods and receiving payment.
The Afreximbank facility is designed to address some of these requirements by providing financing across different stages of business operations, including activities before and after exports.
The facility, announced during CANEX WKND 2026 in Lagos, reflects the event’s focus on connecting creative enterprises with finance, investment and markets. Mrs Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, Afreximbank, and Dr Tony Okpanachi, Managing Director and Chief Executive Officer, DBN, led the ceremonial signing on behalf of their institutions.
In line with Afreximbank’s Export SME Development programme, the facility will combine financing with capacity-building and export-readiness support for beneficiary SMEs, equipping them with the skills, tools and market knowledge to strengthen their businesses, become export-ready and access regional and international markets.
This combination of finance and business development support is important because access to capital alone does not automatically make a business competitive in the export market.
Nigerian SMEs seeking to sell their products outside the country must contend with issues such as product certification, international quality standards, packaging requirements, pricing, distribution networks, intellectual property protection and the ability to fulfil orders consistently.
For instance, a Nigerian fashion business seeking to supply retailers in other African countries must demonstrate that it can maintain production quality, meet delivery schedules and compete with established brands. Similarly, film, music and design businesses need the commercial structures, intellectual property protection and distribution arrangements required to generate sustainable revenue from their creative output.
The absence of these capabilities has often limited the growth of otherwise promising enterprises, making export-readiness assistance an important component of the new arrangement.
Alongside the financing, Afreximbank and DBN will jointly develop a capacity-building programme to strengthen PFIs’ ability to support export-oriented SMEs.
This is particularly relevant because the participating financial institutions will serve as the channel through which the funds reach businesses. Their ability to understand the peculiar financing needs of SMEs, assess export-related risks and structure appropriate facilities will influence how effectively the $75 million investment translates into business expansion.
Afreximbank will also provide access to its trade platforms, including MANSA, TRADAR, PAPSS and ATEX, while supporting market access through the Africa Buyer Programme, African Trade and Distribution Company (ATDC) and the Intra-African Trade Fair (IATF).
These platforms and initiatives could offer Nigerian businesses additional opportunities to establish commercial relationships, identify potential buyers, access trade information and navigate cross-border transactions.
Of particular interest is the Pan-African Payment and Settlement System (PAPSS), which is designed to facilitate cross-border payments in local currencies across participating African countries. For SMEs engaged in regional trade, payment arrangements are an important consideration because transaction costs, currency conversion and delays in receiving funds can affect profitability.
Access to trade platforms and buyer networks could also help reduce the difficulties smaller businesses face in identifying credible customers outside Nigeria.
For many local entrepreneurs, the challenge is not necessarily the absence of products with export potential but the difficulty of finding reliable buyers, understanding market demand and establishing distribution channels in unfamiliar territories.
Mrs Awani said the partnership with DBN went beyond providing capital, explaining that Afreximbank was adopting an integrated approach combining finance with capacity building, export-readiness support and market access.
“Our objective is to help Nigerian SMEs build productive capacity, strengthen their competitiveness, and transition from promising local businesses to sustainable exporters. At the same time, we will work with participating financial institutions to strengthen their capacity to understand finance and support SMEs throughout their growth journey,” she said.
Awani added that combining finance with practical support would help businesses prepare for export markets and connect with buyers across Africa and beyond.
“For creative enterprises, that advances CANEX’s ambition to turn African talent and ideas into sustainable businesses that can compete internationally,” she said.
The partnership combines DBN’s wholesale lending network with Afreximbank’s trade finance expertise, capacity building and market access support, strengthening local financial institutions’ ability to serve export-oriented SMEs.
This arrangement also reflects the importance of development finance institutions in addressing funding gaps that conventional commercial lending may not adequately meet.
DBN was established to improve access to finance for micro, small and medium-sized enterprises by providing wholesale funding and risk-sharing facilities through participating financial institutions. Its model enables it to reach businesses through existing financial institutions rather than operating primarily as a direct retail lender.
Consequently, the success of the Afreximbank facility will depend partly on how effectively the participating institutions identify eligible businesses, assess their financing requirements and ensure that funds reach enterprises with viable expansion and export plans.
Dr Okpanachi said the partnership represented another important step in DBN’s commitment to expanding access to finance for Nigerian MSMEs and enabling them to build resilient, competitive and sustainable businesses.
He noted that the $75 million facility would provide much-needed financing through participating financial institutions while creating greater opportunities for businesses, particularly those in the creative and export-oriented sectors, to strengthen their productive capacity and access new markets.
“Beyond financing, the capacity-building and market-access components of this partnership are particularly important to us. By strengthening financial institutions’ ability to support export-ready businesses and connecting Nigerian enterprises to wider African and international markets, we are helping MSMEs move from local businesses to competitive participants in regional and global value chains,” he added.
He said the initiative aligned with DBN’s mandate to address financing constraints and support inclusive and sustainable economic growth in Nigeria.
For Nigerian SMEs, the broader significance of the arrangement lies in the opportunities created by the African Continental Free Trade Area (AfCFTA), which seeks to establish a single continental market for goods and services and promote intra-African trade.
The agreement has opened discussions around a much larger African market, but businesses must develop the production capacity, competitiveness and distribution arrangements required to benefit from it.
Nigeria’s large entrepreneurial population and established creative industries offer considerable opportunities, particularly in fashion, entertainment, music, film, design and other services that can be commercialised across borders.
However, the ability of these businesses to take advantage of regional trade opportunities will depend on their capacity to scale operations, protect intellectual property, meet regulatory requirements and establish sustainable commercial partnerships.
The Creative Africa Nexus (CANEX) is Afreximbank’s flagship programme for Africa’s creative and cultural industries. It supports the development of commercially sustainable, export-ready creative businesses through access to finance, skills, markets, commercial partnerships and policy support.
CANEX WKND 2026 was held from November 5 to 8 at the Wole Soyinka Centre for Cultural and Creative Arts in Lagos. Organised by Afreximbank, hosted by the Government of Nigeria and delivered in partnership with the African Union Commission and the AfCFTA Secretariat, it brought together creatives, investors, buyers and policymakers from Africa, the Caribbean and the diaspora.
Its programme included a Deal Room, finance and intellectual property sessions, export-readiness training and business-to-business opportunities.
For SMEs, the interest in the Afreximbank-DBN arrangement should therefore extend beyond the headline $75 million figure. The more important consideration is how businesses can position themselves to access the financing, improve their operational capacity and take advantage of the market opportunities being created.
While the facility alone cannot resolve all the financing and structural challenges confronting Nigerian SMEs, its combination of capital, technical support and access to trade networks represents an opportunity for businesses prepared to move beyond the domestic market.
The ultimate test will be the number of enterprises able to use the facility to expand production, secure new buyers, increase exports and create sustainable jobs. If effectively implemented, the partnership could help turn more Nigerian small businesses into competitive players in Africa’s growing regional market.
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