The Bank of Industry has secured a $200 million sovereign-guaranteed thematic financing facility from the African Development Bank Group to expand access to long-term financing for businesses operating in strategic sectors of Nigeria’s economy and accelerate the country’s industrial transformation agenda.
The financing package, approved by the Board of Directors of the African Development Bank Group, is expected to support medium- to long-term funding for enterprises operating in key sectors including infrastructure, transportation, agro-food processing, healthcare, pharmaceuticals, and green industrialisation.
According to details of the arrangement, the facility places strong emphasis on supporting small and medium-sized enterprises (SMEs), particularly businesses owned by women and young entrepreneurs. At least 30% of the financing proceeds are expected to benefit Nigerian SMEs, helping address persistent funding gaps affecting women-led and youth-driven businesses while creating new opportunities for entrepreneurship and economic participation.
The intervention is also designed to promote climate-resilient and low-carbon investments across sectors such as renewable energy, energy-efficient manufacturing, climate-smart agriculture, and sustainable infrastructure development.
Analysts say the financing could help strengthen local manufacturing capacity, improve healthcare and pharmaceutical value chains, reduce import dependence, and enhance productivity across critical sectors of the Nigerian economy.
In addition to the main financing facility, the package includes a $650,000 technical assistance grant from the Fund for African Private Sector Assistance aimed at improving SME capacity development, strengthening environmental, social, and governance (ESG) practices, supporting climate-smart initiatives, and enhancing BOI’s impact measurement systems.
The financing package also incorporates an Affirmative Finance Action for Women in Africa (AFAWA) technical assistance component intended to improve women entrepreneurs’ access to finance, markets, and value chains.
Over the long term, the initiative is expected to contribute to job creation, export expansion, increased tax revenues, foreign exchange savings through import substitution, and stronger contributions from key industrial sectors to Nigeria’s gross domestic product (GDP).
Speaking on the approval, Abdul Kamara, Director General of the African Development Bank Group’s Nigeria Country Department, described the facility as a demonstration of the Bank’s continued commitment to supporting Nigeria’s private sector growth and industrialisation ambitions.
According to him, Nigeria’s industrial transformation requires patient long-term capital that commercial banks are often unable to provide due to structural limitations within the financial system.
“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,” Kamara stated.
He added that the financing would direct capital toward sectors where it can generate the greatest developmental impact, particularly among SMEs, women entrepreneurs, and youth-led businesses driving economic diversification and industrial growth.
Similarly, Ahmed Rashad Attout, Director of the African Development Bank Group’s Financial Sector Development Department, said the facility would strengthen BOI’s capacity to offer affordable and competitive financing to SMEs and high-impact sectors of the economy.
Reacting to the development, the Managing Director and Chief Executive Officer of the Bank of Industry, Olasupo Olusi, described the financing as a major milestone in BOI’s long-standing partnership with the African Development Bank.
Olusi noted that the new facility builds on the success of the Bank’s previous $100 million AfDB credit line to BOI, which was fully repaid in 2025.
According to him, the financing will significantly strengthen BOI’s ability to provide long-term funding to businesses operating in sectors critical to Nigeria’s economic transformation and industrial development.
He stated that beyond financing, the intervention is intended to stimulate industrial growth, expand opportunities for SMEs, empower women- and youth-led enterprises, strengthen local manufacturing, and support Nigeria’s transition toward a more resilient and sustainable economy.
Olusi also expressed appreciation for the African Development Bank’s continued confidence in BOI’s institutional capacity and developmental mandate, assuring that the financing would be translated into tangible economic opportunities, inclusive growth, and job creation across Nigeria.
As one of Nigeria’s leading development finance institutions, BOI has continued to play a major role in supporting industrial projects, expanding financing access to underserved sectors, and promoting enterprise development across the country.
The latest facility also aligns with the African Development Bank’s Ten-Year Strategy focused on promoting inclusive and green growth across Africa. It further supports the institution’s broader “4 Cardinal Points” agenda, which prioritizes unlocking African capital, strengthening financial sovereignty, empowering women and youth, and developing resilient infrastructure and value-added industries across the continent.
