AfDB approves $200m financing facility for Bank of Industry “BoI”

The Board of Directors of the African Development Bank Group has approved a $200 million financing facility for the Bank of Industry (BOI), to expand access to long-term financing for enterprises operating in key growth sectors of the Nigerian economy.

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 industrialization.

The financing prioritizes the growth and development of small and medium-sized enterprises (SMEs), especially those owned by women and led by youth, with at least 30% 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. Addition- ally, 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.

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.

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