The Development Bank of Nigeria (DBN) and LoftyInc Allied Partners Limited have awarded grants of up to ₦1 million each to 24 sanitation businesses to help them expand, acquire assets, adopt technology and improve service delivery.

The grants were announced in Abuja on Thursday at the conclusion of a capacity-building programme aimed at strengthening sanitation enterprises and preparing them to access financing.

MaryEsther Ezeadi, Head of Credit Operations and Collections at DBN, said the funding would support business expansion, asset acquisition, the use of digital tools and technology, and better service delivery.

She explained that four micro, small and medium-sized enterprises (MSMEs) from each region were selected to receive grants. Ezeadi stressed that the money was intended for business development rather than personal spending or property purchases.

“The purpose of the grants is not to fund personal expenditure or acquire additional property. They are intended to support business improvements,” Ezeadi said.

According to Ezeadi, more than 11 participating financial institutions had developed sanitation financing products through the programme. The initiative was designed to prepare businesses and lenders to participate more effectively in the water, sanitation and hygiene sector.

Femi Oluwagbemi, Growth Partner at LoftyInc Allied Partners Limited, said the programme, tagged From Diagnostics to Bankable Enterprises, was developed to help sanitation businesses meet lenders’ requirements and improve their prospects of securing loans.

He noted that some lenders had limited understanding of the operational challenges, business models and specific financing needs of sanitation enterprises, making it difficult for businesses in the sector to obtain credit.

Oluwagbemi disclosed that more than 1,000 enterprises had applied to participate in the programme, while more than 30 businesses had been matched with lenders for financing discussions.

The training covered financial record-keeping, credit requirements, business models and loan readiness. Participating financial institutions also worked on developing financing products tailored to businesses operating in the water, sanitation and hygiene sector.

Chukwuma Nnanna, Executive Director of Toilet Pride, identified limited access to credit as a major obstacle for sanitation businesses, noting that some lenders did not adequately understand how the enterprises operated.

He called for stronger institutional support and increased private-sector investment, explaining that some businesses shut down within three years because they could not secure enough funding to sustain their operations.

“The biggest challenge has been creating the enabling environment where small businesses can thrive and stay sustainable,” Nnanna said.

Monica Tanko, Chief Executive Officer of Arewa Women and Youth Development Initiative (AWOYDI), said funding shortages had restricted the organisation’s ability to expand menstrual hygiene services and improve access to sanitary pads for women and girls.

Tanko said the organisation distributes reusable sanitary pads and works with 20 girls as community-based sales agents. It aims to reach 5,000 women in 2026.

She added that the programme had improved the organisation’s record-keeping practices and helped it monitor its business activities more closely.

“Before the training, record keeping was an issue for us,” she said.

Tanko also explained that the organisation reviewed its pure water business after the training and began paying closer attention to its operations and revenue.

“Before we used to have like ₦100,000 in a week. But with this constant training that we pay more attention, they’re giving us ₦180,000 in a week,” she said.

To make reusable sanitary pads more accessible, the organisation is exploring options for selling them in smaller quantities, which could allow more women and girls to afford the products.

However, Tanko said inadequate funding remained a challenge, particularly when purchasing sanitary pads and supporting community-level workers responsible for distributing them.

The initiative highlights the financing barriers facing sanitation and hygiene enterprises, especially smaller businesses seeking to expand their services. Through a combination of business training, engagement with financial institutions and direct grants, DBN and LoftyInc are seeking to strengthen these enterprises and improve their readiness to access finance.

Source: msmeafrica