The African Development Bank Group (AfDB) approved a $200 million financing facility for the Bank of Industry (BoI) to promote industrial growth and increase access to long-term finance for Nigerian enterprises.
The AfDB announced on Monday that the facility will provide medium- to long-term funding for businesses operating in key sectors of the economy, including infrastructure and transportation, agro-processing, healthcare, pharmaceuticals, and green industrialisation.
The bank stated that the financing would favor small and medium-sized organizations (SMEs), particularly those owned by women and young entrepreneurs, with at least 30 percent of the funds expected to go to Nigerian SMEs.
According to the AfDB, the facility will also suport climate-resilient and low-carbon investments such as renewable energy, climate-smart agriculture, energy-efficient industrial processes, and sustainable infrastructure.
“The financing package includes a $650,000 technical assistance grant from the Fund for African Private Sector Assistance (FAPA) to strengthen SME capacity, improve environmental, social and governance (ESG) practices, and support climate-focused initiatives,” the statement reads.
According to the bank, an Affirmative funding Action for Women in Africa (AFAWA) technical assistance component will help women-led firms gain access to financing and markets.
Speaking on the facility, Abdul Kamara, director-general of the AfDB’s Nigeria office, stated that the approval demonstrates the institution’s commitment to promoting private sector-led growth in the country.
“Nigeria’s industrial transformation requires more patient, long-term capital than the market is structured to provide,” Kamara said.
“Development finance institutions exist precisely to bridge this gap by stepping in when commercial banks may be constrained in meeting the market demand for long-term investment capital.”
Kamara stated that the intervention would provide funds to SMEs, women entrepreneurs, and youth-led enterprises that promote industrialisation and economic diversification.
Olasupo Olusi, BoI’s managing director and chief executive officer (CEO), commented on the development, stating that the facility expands on the bank’s existing partnership with the African Development Bank (AFDB).
“This facility builds on BOI’s long-standing partnership with the African Development Bank, following the successful repayment of a previous $100 million line of credit in 2025,” Olusi said.
The BoI chief also said the bank “remains committed to ensuring that this financing delivers tangible economic opportunities, job creation, and inclusive growth across Nigeria.”
