LAPO Microfinance Bank has unveiled a new climate-smart and gender-inclusive finance initiative targeted at rural farmers, as the lender seeks to bridge the widening gap in climate adaptation funding affecting vulnerable communities across Nigeria.
The programme, launched in partnership with the World Savings and Retail Banking Institute, is designed to improve access to climate finance for smallholder farmers, particularly women, who are disproportionately affected by climate change, poor access to credit facilities, and structural inequalities.
In a statement issued on Monday, the bank said the initiative would showcase the outcomes of a pilot scheme aimed at translating climate data into practical financial solutions capable of helping rural farmers adapt to changing weather conditions and sustain agricultural productivity.
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According to the statement, the initiative leverages tools developed by the Food and Agriculture Organization and the United Nations Environment Programme to provide financial products tailored to the realities of climate risks facing farmers.
The bank noted that smallholder farmers in developing countries currently face an estimated $75bn annual climate adaptation finance gap, while less than one per cent of global climate finance reaches vulnerable rural producers.
It added that the challenge in Nigeria has become more severe due to increasing climate volatility, limited access to affordable financing, and persistent gender-based barriers affecting women farmers.
To tackle these challenges, the pilot programme adopted a risk-management framework aimed at proving that climate adaptation financing can remain commercially sustainable while also delivering measurable social impact.
Under the initiative, four major climate adaptation solutions were identified for implementation. These include solar-powered irrigation systems to reduce dependence on erratic rainfall, water storage facilities to improve water availability during dry seasons, solar dehydration technology for agricultural preservation, and climate-resilient drainage systems to minimise flood-related losses.
Speaking ahead of the unveiling, the Managing Director of LAPO Microfinance Bank, Cynthia Ikponmwosa, said the project aligns with the institution’s broader commitment to inclusive finance and sustainable development.
She said the initiative demonstrates that climate-smart lending is no longer merely a development concept but a viable and scalable business strategy capable of improving livelihoods in rural communities.
Ikponmwosa stated, “By integrating climate adaptation into our existing financial products, we are empowering smallholder farmers, particularly women, to build resilience and improve their livelihoods.”
Also commenting, Programme Director at the World Savings and Retail Banking Institute, Weselina Angelow, described the Nigerian pilot programme as a practical example of how climate finance can be integrated into mainstream banking operations.
According to her, the initiative shows that climate adaptation financing can move beyond theoretical discussions into workable financial solutions that can be replicated by financial institutions in other developing economies.
The bank further disclosed that the programme includes capacity-building initiatives aimed at equipping staff with the technical skills required to provide climate-smart financial advisory services to farmers and rural entrepreneurs.
It added that the next phase of the project would focus on expanding the initiative to more states across Nigeria while mobilising additional funding to increase its reach and long-term impact on rural agricultural communities.
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