AfDB Approves $200m Financing Facility For Bank Of Industry

The board of directors of the African Development Bank Group says it 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, to boost SME capacity, improve environmental, social, and governance (ESG) practices, support climate-smart initiatives, and enhance BOI’s impact measurement systems.

Additionally, 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, the bank said in a statement.

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.

Director general for Nigeria, African Development Bank Group, Abdul Kamara,
said the approval demonstrates the Bank’s continued commitment to supporting Nigeria’s private sector and industrial
growth ambitions. “Nigeria’s industrial transformation requires more patient, longterm 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/CEO of BOI, Olasupo Olusi said: “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.”