As Nigeria grapples with rising interest rates that have hindered the growth of Small and Medium Enterprises (SMEs), the Bank of Industry (BOI) has made a significant stride by raising €1.879 billion from international markets—the largest fundraising ever achieved by a Nigerian or African Development Financial Institution (ADFI). This monumental achievement marks a new chapter for BOI in its mission to enhance productivity, create jobs, and drive inclusive economic growth across Nigeria.
The influx of funds is expected to significantly boost BOI’s balance sheet, increasing its assets to N7.1 trillion in 2025, up from N3.9 trillion in 2023. By collaborating with the National Credit Guarantee Company (NCGC), BOI aims to enhance the availability of low-interest credit for SMEs, addressing Nigeria’s substantial annual development financing gap of over $35 billion. This partnership will allow BOI to share risks and offer guaranteed loans, thus empowering more businesses to access the capital they need to thrive.
In his New Year address, President Bola Ahmed Tinubu lauded BOI for its leadership in improving the credit delivery landscape in Nigeria’s financial system. He emphasized that his administration would continue to strengthen access to credit, with the NCGC expected to begin operations by the end of Q2 2025. This initiative, which will involve collaboration with various government agencies and private sector entities, is designed to expand risk-sharing instruments, especially for vulnerable sectors such as MSMEs, agriculture, and sustainable development.
The €1.879 billion fundraising was oversubscribed by 187.9%, underscoring the high level of trust that international investors—particularly from the Middle East and Asia—have in BOI. The innovative dual-layer guarantee structure, supported by the Africa Finance Corporation (AFC) and the Central Bank of Nigeria (CBN), helped BOI secure lower interest rates than typically associated with Nigerian debt instruments, resulting in significant savings for the bank and its borrowers. These favorable terms will help increase competitiveness and reduce the cost of doing business in Nigeria.
As BOI looks to the future, its strategic focus areas are aligned with Nigeria’s broader developmental goals. These include gender equality, youth empowerment, agriculture, digital economy, and sustainability. Through initiatives such as the Rural Areas Programme for Investment and Development (RAPID), BOI is dedicated to promoting financial inclusion, particularly for women and young people in rural Nigeria. This program is just one example of how BOI is using its resources to empower underserved communities and foster economic development across the country.
BOI’s Managing Director, Olasupo Olusi, highlighted the bank’s commitment to driving sustainable industrialization through strategic partnerships and innovative financing solutions. In addition to its role in Nigeria’s industrial development, BOI is actively involved in global sustainability initiatives, having been appointed as a Direct Access Entity by the Green Climate Fund (GCF) to finance climate projects. This designation allows BOI to spearhead Nigeria’s efforts in climate change mitigation and adaptation, further demonstrating its commitment to sustainable growth.
In 2024, BOI launched several new initiatives aimed at improving Nigeria’s economic landscape. The bank introduced a price intelligence platform to monitor food commodity prices in real-time, contributing to transparency and market stability. BOI also approved a N50 billion recapitalization of its subsidiary, LECON Financial Services, to support asset acquisition for businesses at lower costs, easing the financial burden on SMEs. Additionally, the bank’s re-issuance of its trusteeship operating license for BOI Investment and Trust Company (BOI-ITC) will enable it to provide governance, consultancy, and business advisory services, further broadening its impact on Nigeria’s economy.
Looking to the future, BOI remains steadfast in its commitment to supporting Nigeria’s economic transformation. With a robust onlending program, partnerships with local and international institutions, and a focus on sustainable development, BOI is well-positioned to continue driving industrialization, job creation, and inclusive growth in Nigeria. As the bank celebrates its 65-year history, its innovative financing solutions and dedication to national impact ensure that it will play a central role in shaping Nigeria’s economic future.
