The Bank of Industry (BOI) has secured a $200 million sovereign-guaranteed financing facility from the African Development Bank (AfDB) to expand access to long-term funding for businesses operating in critical sectors of Nigeria’s economy.
The financing package, approved by the Board of Directors of the African Development Bank Group, is expected to support Nigeria’s industrial transformation by providing medium- to long-term capital for enterprises in infrastructure and transport, agro-processing, healthcare, pharmaceuticals, and green industrialisation.
According to the AfDB, the intervention prioritises small and medium-sized enterprises (SMEs), particularly businesses owned by women and young entrepreneurs. At least 30 percent of the facility is expected to be directed toward Nigerian SMEs to help bridge longstanding financing gaps and stimulate entrepreneurship.
The facility will also support climate-resilient and low-carbon investments, including renewable energy projects, climate-smart agriculture, energy-efficient industrial processes, and sustainable infrastructure solutions aimed at boosting productivity and reducing import dependence.
In addition to the core financing, the package includes a $650,000 technical assistance grant from the Fund for African Private Sector Assistance (FAPA) to strengthen SME capacity, improve environmental and governance standards, and enhance BOI’s impact-measurement systems.
An additional support component under the Affirmative Finance Action for Women in Africa (AFAWA) initiative is expected to improve access to finance, markets, and value chains for women-owned businesses across Nigeria.
Speaking on the approval, AfDB’s Director General for Nigeria, Abdul Kamara, said Nigeria’s industrial ambitions require patient, long-term capital beyond what conventional lenders can typically provide. He noted that the intervention is designed to channel financing into sectors capable of accelerating industrial growth and economic diversification.
BOI Managing Director and Chief Executive Officer, Dr. Olasupo Olusi, described the financing as a significant milestone in the institution’s partnership with the AfDB, noting that it follows the successful repayment of a previous $100 million AfDB credit facility in 2025.
Olusi added that beyond financing, the intervention is expected to support industrial growth, expand opportunities for SMEs, strengthen local manufacturing capacity, and create jobs across the country.
Analysts say the development could provide much-needed relief for Nigeria’s manufacturing and SME sectors, which continue to face challenges accessing affordable long-term credit amid high interest rates and inflationary pressures. The financing is also expected to strengthen healthcare and pharmaceutical value chains while supporting export growth and foreign exchange savings through import substitution.
