The Bank of Industry (BOI) and the African Guarantee Fund (AGF) have signed a $50 million loan portfolio guarantee framework to boost women entrepreneurs, Micro, Small, and Medium Enterprises (MSMEs), and environmentally sustainable businesses in Nigeria.
The agreement, finalized at the Africa Investment Forum in Rabat, Morocco, is backed by the African Development Bank’s (AfDB) Affirmative Finance Action for Women in Africa (AFAWA) initiative.
Key Features of the Partnership
- Loan Portfolio Guarantee:
The $50 million (₦75 billion) guarantee will be rolled out in three tranches over 10 years to expand BOI’s SME lending capabilities. - Target Sectors:
- Women-led businesses
- Youth-owned enterprises
- Environmentally sustainable businesses
- Economic Impact:
The partnership aims to unlock up to $100 million in financing for SMEs, creating opportunities for sectors critical to Nigeria’s economic resilience and sustainability.
Statements from Leaders
- Dr. Olasupo Olusi, BOI Managing Director:
“With this portfolio guarantee of up to ₦75 billion, we are unlocking unprecedented opportunities for enterprises that represent a resilient and sustainable economic future for our nation. By prioritizing women-owned businesses and climate-conscious enterprises, we affirm that women must not just participate in Nigeria’s economic story—they must lead it.”
He further highlighted BOI’s track record of disbursing over ₦1.6 trillion in loans over the past decade, supporting millions of MSMEs, and creating over nine million jobs.
- Jules Ngankam, AGF Group CEO:
“This transaction will significantly impact Nigeria’s economy by unlocking up to $100 million in financing for SMEs. AGF will also provide tailored guarantees and technical assistance for BOI’s SME products targeting women, youth, and green businesses.”
- Dr. Beth Dunford, Vice President for Agriculture, Human, and Social Development at AfDB:
“This partnership is not just a financial transaction; it is a beacon of hope and progress for African businesses, particularly those led and owned by women.”
Strategic Alignment with Development Goals
The partnership reflects a shared commitment to:
- Advancing gender equity by empowering women entrepreneurs.
- Supporting climate-friendly enterprises to foster sustainability.
- Enhancing financial inclusion by addressing financing gaps for SMEs.
This initiative is a significant step toward achieving Nigeria’s broader goals of economic diversification, industrial transformation, and sustainable development.
As BOI and AGF collaborate to implement this transformative program, Nigerian MSMEs are poised to gain access to critical resources that will drive innovation, job creation, and long-term economic growth.
