BOI Secures $200m AfDB Facility for SMEs

The Bank of Industry (BOI) has secured a $200m sovereign-guaranteed facility from the African Development Bank (AfDB) to expand long-term financing for Nigerian enterprises in strategic sectors.

According to the AfDB, the funding will support infrastructure, transport, agro-food processing, health, pharmaceuticals, and green industrialisation, with at least 30% of proceeds earmarked for SMEs, especially women-owned and youth-led businesses.

The package also includes a $650,000 technical assistance grant to strengthen SME capacity, improve environmental and governance practices, and support climate-smart initiatives.

An additional component under the Affirmative Finance Action for Women in Africa will boost access to finance and markets for women entrepreneurs.

AfDB Nigeria Country Director Abdul Kamara said: “Nigeria’s industrial transformation requires more patient, long-term capital than the market is structured to provide. This approval directs capital to work in areas where it matters most, supporting SMEs, women entrepreneurs, and young business owners.”

The AfDB’s Financial Sector Development Director Ahmed Rashad Attout added that the facility will enhance BOI’s ability to provide affordable financing to high-impact sectors.

BOI Managing Director Olasupo Olusi welcomed the partnership, noting that the bank had fully repaid a previous $100m AfDB line in 2025.

“Beyond financing, this intervention is about enabling industrial growth, empowering women and youth-led businesses, strengthening local manufacturing capacity, and accelerating Nigeria’s transition towards a resilient economy,” he said.

The initiative is expected to drive job creation, export growth, tax revenue increases, and foreign exchange savings through import substitution, while promoting inclusive and climate-resilient growth.

It aligns with AfDB’s 10-year strategy for inclusive and green growth, focusing on unlocking capital, empowering women and youth, and building resilient infrastructure and value-added industries across Nigeria.