The Bank of Industry (BOI), Nigeria’s foremost development finance institution, marked its 65th anniversary with the announcement of groundbreaking milestones, including mobilizing over $5 billion from international capital markets. This feat solidifies BOI’s role as a critical driver of industrialization, economic development, and MSME empowerment in Nigeria.
BOI’s Commitment to Nigeria’s Economic Transformation
Speaking at the anniversary media parley in Lagos, Dr. Olasupo Olusi, Managing Director and CEO of BOI, highlighted the institution’s evolution from its inception as the Investment Company of Nigeria in 1959 to its current role as a financial powerhouse.
BOI’s strategy focuses on six core themes:
- Gender inclusion
- Climate and sustainability
- Youth empowerment and skills
- Digital economy
- Infrastructure development
- Rural investments
Dr. Olusi emphasized BOI’s mission to foster industrial growth, create jobs, and drive inclusive development, with initiatives like the Rural Areas Program on Investment for Development (RAPID) targeting underserved regions and vulnerable groups.
Fundraising and Partnerships
BOI’s international fundraising efforts commenced in 2017 with a $750 million loan from AFREXIM. Since then, the bank has raised over $5 billion through Eurobonds, loan syndications, and green finance instruments. Notably, it recently secured nearly €2 billion in a global loan syndication, the largest in BOI’s history and among African Development Finance Institutions.
Strategic collaborations with organizations such as the Green Climate Fund, state governments, and trade associations (e.g., NASME and MAN) underscore BOI’s focus on addressing climate challenges, expanding MSME access to finance, and fostering industrial development.
“The $5 billion we’ve raised signifies our capacity to deliver innovative financing solutions tailored to Nigeria’s unique needs,” said Dr. Olusi.
Empowering MSMEs: Record Disbursements
BOI continues to prioritize MSME growth, setting ambitious disbursement targets for small businesses:
- As of October 2024, BOI had disbursed N107 billion to 1.5 million MSMEs, surpassing its yearly target of N103 billion.
- By December 2024, the bank aims to disburse up to N120 billion, impacting over 2 million MSMEs.
- BOI plans to allocate N3.7 billion to rural businesses by Q1 2025, with expanded operations in all state capitals to enhance reach and accessibility.
Key Initiatives and Milestones
- FGN MSME Intervention Fund: BOI has been appointed the executing agency for a N200 billion fund, encompassing:
- N50 billion Presidential Conditional Grant Scheme (PCGS)
- N75 billion Manufacturing Sector Fund
- N75 billion MSME Intervention Sector Fund
- RAPID Program: Targets financial inclusion for rural entrepreneurs, particularly women and youth.
- Partnership with SMEDAN: Facilitates a N1 billion fund at single-digit interest rates for nano and micro-enterprises.
- Price Intelligence Platform: Recently launched to monitor real-time food commodity prices, promoting transparency and stability in the market.
The Role of MSMEs in Nigeria’s Economy
BOI Executive Director Shekarau Omar emphasized the significance of Nigeria’s 39–40 million MSMEs, which surpass the populations of many African nations.
“This bank belongs to the MSMEs,” Omar declared, highlighting the sector’s role in driving economic growth and innovation.
Looking Ahead
BOI remains committed to its vision of building a resilient and inclusive economy, with a focus on sustainability, innovation, and equitable access to finance. As Dr. Olusi stated, “We will continue to innovate, partner, and invest to create a better future for all Nigerians.”
