The Bank of Industry has secured a $200m sovereign-guaranteed thematic financing facility from the African Development Bank Group to expand access to long-term financing for enterprises in strategic sectors of the Nigerian economy.
The facility follows approval by the Board of Directors of the African Development Bank Group, according to a statement from the AfDB on Sunday.
It stated that the facility is designed to support Nigeria’s industrial transformation by providing medium- to long-term funding for businesses in infrastructure and transport, agro-food processing, health and pharmaceuticals, and green industrialisation.
The funding prioritises small and medium-sized enterprises, particularly women-owned and youth-led businesses, with at least 30 per cent of the proceeds expected to benefit Nigerian SMEs. The initiative aims to close financing gaps and expand entrepreneurship opportunities in underserved segments.
The facility will also support climate-resilient and low-carbon investments, including renewable energy, energy-efficient industrial processes, climate-smart agriculture, and sustainable infrastructure.
These are expected to strengthen local manufacturing, improve productivity, boost healthcare and pharmaceutical value chains, and reduce import dependence.
In addition, the package includes a $650,000 technical assistance grant from the Fund for African Private Sector Assistance to strengthen SME capacity, improve environmental, social, and governance practices, support climate-smart initiatives, and enhance BOI’s impact measurement systems.
An Affirmative Finance Action for Women in Africa technical assistance component will further improve access to finance, markets, and value chains for women-owned and women-led SMEs.
Over time, the intervention is expected to support job creation, export growth, increased tax revenues, foreign exchange savings through import substitution, and stronger sectoral contributions to Nigeria’s gross domestic product, thereby promoting a more inclusive and climate-resilient economy.
The Director-General of the African Development Bank Group Nigeria Country Department, Abdul Kamara, said the approval reflects the Bank’s commitment to supporting Nigeria’s private sector and industrial development.
“Nigeria’s industrial transformation requires more patient, long-term capital than the market is structured to provide. Development finance institutions exist precisely to bridge this gap by stepping in when commercial banks are not able to meet the market demand for long-term investment capital. This approval directs capital to work in areas where it matters most, supporting SMEs, women entrepreneurs, and young business owners, driving Nigeria’s industrial growth and economic diversification,” he said.
The Director of the African Development Bank Group Financial Sector Development Department, Ahmed Rashad Attout, said the facility will strengthen BOI’s capacity to provide affordable financing to SMEs, women- and youth-led enterprises, and high-impact sectors.
Reacting, the Managing Director/Chief Executive Officer of BOI, Olasupo Olusi, said the bank welcomed the renewed partnership with the AfDB.
“BOI is pleased to deepen its long-standing partnership with the African Development Bank through this landmark facility, building on the successful collaboration under the bank’s previous $100m line to BOI, which was fully repaid in 2025. This new facility will further strengthen our capacity to provide long-term financing to enterprises operating in sectors critical to Nigeria’s economic transformation.
“Beyond financing, this intervention is about enabling industrial growth, expanding opportunities for SMEs, empowering women and youth-led businesses, strengthening local manufacturing capacity, and accelerating Nigeria’s transition towards a more resilient and sustainable economy.
“We appreciate the African Development Bank’s continued confidence in BOI’s mandate, institutional capacity, and developmental impact, and we remain committed to ensuring that this financing translates into tangible economic opportunities, job creation, and inclusive growth across Nigeria,” he said.
BOI said it has consistently supported industrial projects and underserved segments of the economy through development financing interventions. The operation builds on the African Development Bank Group’s engagement in Nigeria, with investments across all regions supporting inclusive growth and job creation.
It also aligns with the bank’s 10-year strategy for inclusive and green growth and its priorities of unlocking capital, strengthening financial sovereignty, empowering women and youth, and developing resilient infrastructure and value-added industries.
