Bank of Industry (BoI) has secured a $200 million sovereign-guaranteed financing facility from the African Development Bank Group (AfDB) to expand long-term funding for businesses operating in key sectors of Nigeria’s economy.
The financing, approved by AfDB’s Board of Directors, is expected to strengthen BoI’s ability to provide medium- and long-term credit to companies in strategic industries aligned with the federal government’s industrialisation agenda, including infrastructure, transport, agro-processing, healthcare, pharmaceuticals, and green manufacturing.
The intervention comes as Nigeria seeks to accelerate industrial growth, reduce import dependence, expand local manufacturing capacity, and improve access to affordable financing for businesses facing high borrowing costs.
SMEs, Women and Youth Businesses Prioritised
A significant portion of the facility will target small and medium-sized enterprises (SMEs), with at least 30 per cent of the financing earmarked for Nigerian SMEs, particularly women-owned and youth-led businesses.
The package also includes a $650,000 technical assistance grant from the Fund for African Private Sector Assistance (FAPA), designed to improve SME capacity, strengthen environmental and governance standards, support climate-smart investments, and enhance BoI’s impact measurement systems.
Additionally, the Affirmative Finance Action for Women in Africa (AFAWA) initiative will provide technical support to improve women entrepreneurs’ access to financing, markets, and regional value chains.
Managing Director and Chief Executive of BoI, Olasupo Olusi, described the financing as a major milestone in the institution’s partnership with AfDB.
According to Olusi, the facility builds on a previous $100 million AfDB credit line fully repaid by BoI in 2025.
“This intervention is designed not only to provide financing but also to stimulate industrial growth, expand opportunities for SMEs, empower women and youth-led businesses, strengthen local manufacturing capacity, and support Nigeria’s transition to a more resilient and sustainable economy,” he said.
AfDB Backs Nigeria’s Industrial Expansion
AfDB said the funding would support climate-resilient and low-carbon investments, including renewable energy projects, energy-efficient industrial systems, climate-smart agriculture, and sustainable infrastructure.
The bank stated that the investments are expected to improve productivity, deepen local manufacturing, strengthen pharmaceutical and healthcare value chains, and reduce Nigeria’s dependence on imports.
AfDB Director-General for Nigeria, Abdul Kamara, said the approval reflects the institution’s commitment to supporting Nigeria’s private sector and industrial growth ambitions.
“Nigeria’s industrial transformation requires long-term patient capital that commercial banks are often unable to provide,” Kamara said.
Director of AfDB’s Financial Sector Development Department, Ahmed Rashad Attout, added that the financing would enhance BoI’s ability to offer competitive loans to SMEs and high-impact businesses led by women and young entrepreneurs.
AfDB said the programme is expected to generate jobs, support export growth, increase tax revenues, and deliver foreign exchange savings through import substitution over the long term.
BoI, IFC Partner on Abuja Mega Conference Arena
Separately, BoI signed a cooperation agreement with the International Finance Corporation (IFC) to support the development of the Abuja Conference and Exhibition Arena (ACE Arena), a planned large-scale conference and exhibition complex in Nigeria’s capital.
The project, expected to be developed under a Public-Private Partnership framework, will include exhibition halls, hospitality facilities, retail spaces, and cultural centres designed to position Abuja as a leading destination for international conferences and events in Africa.
IFC will provide advisory services covering market studies, financial assessments, environmental reviews, and regulatory evaluations to prepare the project for future investment phases.
Olusi said the project could unlock major economic opportunities for Nigeria by strengthening business tourism, hospitality revenues, and global commercial engagement.
IFC Regional Director for Nigeria and Central Africa, Dahlia Khalifa, said the initiative aligns with the World Bank Group’s strategy to mobilise private capital for infrastructure development in Nigeria.
The IFC also disclosed that it committed $12.8 billion to Nigeria’s private sector over the past five fiscal years, including $1.9 billion in long-term financing and $10.9 billion in short-term financing, while doubling its infrastructure commitments from $1.5 billion in 2020 to $3 billion in 2025.
