African Development Bank approves $200 million facility for Nigeria's Bank of Industry

The Board of Directors of the African Development Bank Group (AfDB) has approved a $200 million financing facility for the Bank of Industry (BOI) to expand access to long-term financing for enterprises operating in key growth sectors of the Nigerian economy, according to a press release issued on 15 May 2026. The facility is designed to drive Nigeria’s industrial transformation by providing medium- to long-term funding for businesses in critical sectors. These include infrastructure and transport, agro-food processing, health and pharmaceuticals, and green industrialization. The package directs capital toward SMEs, women entrepreneurs, and young business owners. It signals continued partnership between the African Development Bank and Nigeria’s private sector.

The financing prioritizes the growth of small and medium-sized enterprises (SMEs), particularly those owned by women and led by youth. At least 30% of the proceeds are expected to benefit Nigerian SMEs. This focus aims to close persistent funding gaps for women-owned and youth-led enterprises. It also seeks to unlock new entrepreneurship opportunities across the country. The intervention builds on prior cooperation between the two institutions.

Beyond SME support, the facility will back climate-resilient and low-carbon investments, including renewable energy, energy-efficient industrial processes, climate-smart agriculture, and sustainable infrastructure solutions. These investments are expected to improve productivity and promote local manufacturing. They are also intended to strengthen healthcare and pharmaceutical value chains. Additionally, they should help reduce dependence on imports. The package complements Nigeria’s broader industrial ambitions.

The financing is reinforced by a $650,000 technical assistance grant from the Fund for African Private Sector Assistance (FAPA) to boost SME capacity, improve environmental, social, and governance (ESG) practices, support climate-smart initiatives, and enhance BOI’s impact measurement systems. An Affirmative Finance Action for Women in Africa (AFAWA) technical assistance component will further improve access to finance, markets, and value chains for women-owned and women-led SMEs. Abdul Kamara, Director General for Nigeria, African Development Bank Group, said the approval demonstrates the Bank’s continued commitment to Nigeria’s private sector.

“Nigeria’s industrial transformation requires more patient, long-term capital than the market is structured to provide. Development finance institutions exist precisely to bridge this gap by stepping in when commercial banks may be constrained in meeting the market demand for long-term investment capital,” he said. He added that the approval directs capital where it matters most.

Olasupo Olusi, Managing Director/Chief Executive Officer of BOI, said the facility builds on BOI’s long-standing partnership with the African Development Bank, following the successful repayment of a previous $100 million line of credit in 2025. Over the long term, the intervention is expected to contribute to job creation, export growth, increased tax revenues, and foreign exchange savings through import substitution. It should also strengthen the contribution of key sectors to Nigeria’s gross domestic product (GDP). The outcome is expected to support a more inclusive, diversified, and climate-resilient economy. BOI reaffirmed its commitment to delivering tangible economic opportunities across Nigeria.