The African Development Bank Group (AfDB) has approved a $200m sovereign-guaranteed thematic financing facility for Bank of Industry (BoI) to increase long-term financing for small and medium enterprises (SMEs) across the broad spectrum of the nation’s economy.
The management of the BOI, in a statement on Sunday, disclosed that the approval of the facility its Board of Directors of the development finance institution was aimed at supporting the Federal Government’s reforms on the nation’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.
According to the statement, the facility’s disbursement will prioritise 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 with the attendant implications for expanding entrepreneurship opportunities in underserved segments.
Similarly, the BoI management further clarified that the facility would also support climate-resilient and low-carbon investments, including renewable energy, energy-efficient industrial processes, climate-smart agriculture, and sustainable infrastructure with a view to strengthening local manufacturing, improve productivity, boost healthcare and pharmaceutical value chains, and reduce import dependence.
- Advertisement -
The facility 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.
Commenting on the AfDB’s intervention, the Director-General of the AfDB Group Nigeria Country Department, Abdul Kamara, said the approval reflected the development bank’s commitment to supporting Nigeria’s private sector and industrial development.
The banker said: “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.”
Also, the Director of the AfDB Group Financial Sector Development Department, Ahmed Rashad Attout, expressed optimism that the facility would strengthen BOI’s capacity to provide affordable financing to SMEs, women and youth-led enterprises, and high-impact sectors.
In his remarks, the Managing Director/CEO of BoI, Dr. Olasupo Olusi, commended the AfDB Group’s board and management for the development finance institution’s renewed partnership with the BoI.
He enthused: “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”, Olusi pledged.
