BOI secures $200m financing facility from AfDB Group to aid Nigeria’s industrial transformation

Nigeria’s foremost development finance institution, Bank of Industry (BOI), has secured a $200 million sovereign-guaranteed thematic financing facility from the African Development Bank Group to help to expand access to long-term financing for enterprises operating in strategic sectors of the economy.

This follows the approval of the Board of Directors of the African Development Bank Group.

The facility will drive Nigeria’s industrial transformation by providing medium- to long-term funding for businesses in critical sectors, including infrastructure and transport, agro-food processing, health and pharmaceuticals, and green industrialisation.

It prioritises the growth and development of small and medium-sized enterprises (SMEs), especially those owned by women and led by youth, with at least 30 percent of the proceeds expected to benefit Nigerian SMEs. This will help to close persistent funding gaps for women-owned and youth-led enterprises and unlock new entrepreneurship opportunities.

The facility will also support climate-resilient and low-carbon investments, including renewable energy, energy-efficient industrial processes, climate-smart agriculture, and sustainable infrastructure solutions. These investments are expected to improve productivity, promote local manufacturing, strengthen healthcare and pharmaceutical value chains, and reduce dependence on imports.

The package is strengthened by a $650,000 technical assistance grant from the Fund for African Private Sector Assistance (FAPA) to boost SME capacity, improve environmental, social, and governance (ESG) practices, support climate-smart initiatives, and enhance BOI’s impact measurement systems.

Additionally, an Affirmative Finance Action for Women in Africa (AFAWA) technical assistance component will further improve access to finance, markets, and value chains for women-owned and women-led SMEs.

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Over the long term, the intervention is expected to contribute to job creation, export growth, increased tax revenues, foreign exchange savings through import substitution, and stronger contributions of key sectors to Nigeria’s Gross Domestic Product (GDP), supporting a more inclusive, diversified, and climate-resilient economy.

Dr. Abdul Kamara, Director General of the African Development Bank Group Nigeria Country Department, said the approval demonstrates the Bank’s continued commitment to supporting Nigeria’s private sector and industrial growth ambitions.

“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.

Mr. Ahmed Rashad Attout, Director of the African Development Bank Group Financial Sector Development Department, reiterated that this long-term affordable financing will strengthen BOI’s capacity to provide competitive loans to SMEs, women- and youth-led enterprises, and high-impact sectors.

Reacting, Dr. Olasupo Olusi, Managing Director/Chief Executive Officer of the Bank of Industry, stated that: “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 $100 million 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.

As one of Nigeria’s development finance institutions, BOI has consistently demonstrated its capacity to deliver impactful financing, support industrial projects, and reach underserved segments of the economy.

The operation also builds on the African Development Bank Group’s sustained engagement in Nigeria, with a development footprint and investments spanning all regions of the country, contributing to inclusive growth and the creation of thousands of jobs.

The project aligns with the African Development Bank’s 10-year strategy for promoting inclusive and green growth and advances the Bank’s strategic priorities under its “four Cardinal Points” agenda, including unlocking Africa’s capital, rebuilding Africa’s financial sovereignty, empowering women and youth, and building resilient infrastructure and value-added industries.