AfDB Approves $200m BOI Facility For Nigeria’s Agro-Processing Growth

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

The financing package is expected to support Nigeria’s industrial transformation by providing medium- to long-term funding for businesses in sectors such as infrastructure and transport, agro-food processing, health and pharmaceuticals, and green industrialisation.

According to the Bank, the facility places strong emphasis on supporting small and medium-sized enterprises (SMEs), particularly women-owned and youth-led businesses, with at least 30 per cent of the proceeds targeted at Nigerian SMEs.

The intervention is aimed at addressing persistent financing gaps facing emerging enterprises while creating new entrepreneurship opportunities across the country.

The package also includes support for climate-resilient and low-carbon investments, including renewable energy, energy-efficient industrial processes, climate-smart agriculture and sustainable infrastructure solutions.

The initiative is expected to improve productivity, strengthen local manufacturing capacity, deepen healthcare and pharmaceutical value chains, and reduce dependence on imports.

To strengthen implementation, the financing arrangement is backed by a $650,000 technical assistance grant from the Fund for African Private Sector Assistance to enhance SME capacity, improve environmental, social and governance practices, support climate-smart initiatives and strengthen BOI’s impact measurement systems.

An additional technical assistance component under the Affirmative Finance Action for Women in Africa programme will support improved access to finance, markets and value chains for women-owned and women-led SMEs.

The African Development Bank said the intervention is expected to contribute to job creation, export growth, increased tax revenues and foreign exchange savings through import substitution, while strengthening the contribution of key sectors to Nigeria’s gross domestic product.

Abdul Kamara, Director General for Nigeria at the African Development Bank Group, said the approval reflects the institution’s commitment to supporting Nigeria’s industrialisation agenda and private sector growth.

“Nigeria’s industrial transformation requires more patient, long-term capital than the market is structured to provide. 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.

This approval directs capital to work in areas where it matters most, supporting SMEs, women entrepreneurs, and young business owners driving Nigeria’s industrial growth and economic diversification,” he said.

Managing Director and Chief Executive Officer of BOI, Olasupo Olusi, said the financing builds on the development bank’s existing relationship with the African Development Bank Group.

“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.

We appreciate the Bank’s continued confidence in BOI’s mandate and institutional capacity, and we remain committed to ensuring that this financing delivers tangible economic opportunities, job creation, and inclusive growth across Nigeria,” he said.