BOI Leads Call For Stronger Domestic Capital Mobilisation To Drive Nigeria’s $1trn Economy Agenda

The Bank of Industry (BOI) has restated that mobilising domestic capital has become imperative to financing Nigeria’s development priorities.

The Bank stated this at the sixth Annual Conference and General Assembly of the Association of Nigerian Development Finance Institutions (ANDFI), themed ‘Unlocking Domestic Capital for Development Financing’ held in Abuja.

The managing director and chief executive officer of BOI and chairman of ANDFI, Dr Olasupo Olusi said Nigeria must increasingly rely on domestic resources to fund critical sectors as access to long-term global development finance becomes more constrained.

According to Olusi, the conference theme reflects one of the country’s most pressing economic priorities. As access to long-term global development capital becomes increasingly constrained, mobilising domestic resources is no longer simply desirable. It is essential.

He explained that domestic capital must play a greater role in financing infrastructure, industrialisation, agriculture, housing, MSME development and other strategic sectors identified in Nigeria’s long-term development agenda.

Olusi noted that development finance institutions occupy a unique position at the intersection of public policy and private enterprise, with the responsibility of mobilising capital, expanding access to finance, supporting businesses and catalysing sustainable economic development.

“Despite tighter global financing conditions and heightened uncertainty, Nigerian DFIs have remained committed to advancing the country’s development priorities and supporting President Bola Tinubu’s Renewed Hope Agenda,” he added.

He also highlighted the progress made by ANDFI over the last six years, describing the association as an important platform for collaboration among federal, regional and state-owned DFIs.

Delivering the keynote address, the minister of Finance and coordinating minister of the Economy, Prof Taiwo Oyedele said, Nigeria’s ambition of building a one-trillion-dollar economy would depend on effectively mobilising domestic savings rather than relying primarily on government borrowing or foreign capital.

He argued that countries that successfully mobilise domestic resources would be better positioned for long-term economic growth, stressing that domestic capital complements rather than replaces foreign investment.

To accelerate mobilisation, the minister outlined five priorities; unlocking household wealth through more attractive investment products; directing institutional funds into productive sectors; expanding credit enhancement mechanisms; strengthening capital market instruments such as infrastructure and green bonds; and reforming DFIs to become more innovative, collaborative and catalytic.

The regional director-general for Nigeria, African Development Bank, Dr. Abdul Kamara described strong national DFIs as a strategic imperative for Africa’s largest economy.

Kamara disclosed that Nigeria would require an estimated $2.3 trillion in cumulative investments over the next two decades to close its infrastructure deficit and meet development benchmarks by 2043.

He noted that a significant portion of the AfDB’s $6.7 billion portfolio in Nigeria is already channelled through institutions including BOI, the Bank of Agriculture (BOA), the Nigeria Sovereign Investment Authority (NSIA) and commercial banks.

The managing director of Bank of Agriculture, Ayo Sotinrin, announced plans to transform the institution through a proposed $1 billion recapitalisation to expand agricultural financing.

He said the Bank has financed more than 500,000 farmers and is deploying 2,000 tractors to mechanise 1.2 million hectares.

The acting managing director of the Infrastructure Bank, Nasiru Isyaku said, Nigeria faces an estimated $100 billion annual infrastructure financing deficit, while private investment between 2013 and 2023 amounted to just $8.4 billion.