In a move to bridge the widening climate adaptation funding gap for smallholder farmers, LAPO Microfinance Bank (MfB), in collaboration with the World Savings and Retail Banking Institute (WSBI), is set to unveil the outcomes of a pilot initiative designed to deliver climate-smart and gender-inclusive finance to rural farmers across Nigeria.
The initiative, announced in a statement on Monday, directly targets barriers that have long restricted access to climate finance, particularly for women and smallholder farmers who remain the most vulnerable to environmental shocks.
According to the bank, the programme leverages cutting-edge tools developed by the Food and Agriculture Organization (FAO) and the United Nations Environment Programme (UNEP) to translate complex climate data into practical, accessible financial solutions.
A $75 Billion Adaptation Gap
Smallholder farmers in developing countries face an estimated $75 billion annual climate adaptation finance shortfall, with less than one per cent of global climate funds reaching rural producers in need. In Nigeria, the bank noted, the challenge is aggravated by recurring climate volatility, limited credit access, and deep-rooted structural gender inequalities.
The pilot programme adopts a risk-management approach, proving that climate adaptation can be commercially viable while delivering measurable social impact.
Four climate adaptation solutions have been identified for rollout: solar-powered irrigation systems, water storage facilities, solar dehydration technology, and climate-resilient drainage systems.
‘Beyond Theory — A Scalable Model’
Speaking ahead of the unveiling, Cynthia Ikponmwosa, Managing Director of LAPO Microfinance Bank, said the initiative aligns with the institution’s long-standing commitment to inclusive finance.
“This initiative demonstrates that climate-smart lending is not just a development concept but a practical and scalable business model,” Ikponmwosa said. “By integrating climate adaptation into our existing financial products, we are empowering smallholder farmers, particularly women, to build resilience and improve their livelihoods.”
Weselina Angelow, Programme Director at WSBI, added that the Nigerian pilot offers a replicable blueprint for financial institutions across the developing world.
“What we are seeing in Nigeria shows that climate adaptation can move beyond theory into practical financial solutions,” Angelow said. “This initiative demonstrates that climate finance can be scalable and integrated into mainstream banking systems.”
Capacity Building and Next Phase
Beyond direct financing, LAPO MfB disclosed that the programme includes capacity-building initiatives to equip its staff with the skills needed to deliver climate-smart financial advisory services to rural clients.
The bank confirmed that the next phase will focus on expanding the initiative to more states and mobilising additional funding to scale its impact across the country.
