The Federal Government, through the Bank of Industry, plans to implement an on-lending financing scheme to support the adoption of clean energy solutions.
This was disclosed by the MD/CEO of BoI, Dr Olasupo Olusi, at the ongoing AADFI-ADFIAP Joint CEO Forum in Abuja on Thursday.
Olusi noted the need to ensure that institutions are resilient enough to attract affordable long-term finance through which green projects can be implemented.
He added:
- “At BoI, we are very active in resourcing climate-friendly funds, including the recent credit line of 100 million Euros secured from the French Development Agency (AFD) for the expansion of green finance in Nigeria.
- “The bank is also currently implementing an on-lending financing scheme through local financial institutions to support customers interested in adopting clean energy solutions. We will continue to seek funding partners to complement our climate change agenda.”
Climate change and DFI’s role
It is globally recognised that there is an opportunity for climate change mitigation and adaptation to become a primary driver of economic growth, and development finance institutions (DFIs) can become the vehicles for this change.
In his welcoming remark, Olusi noted the significant effects of climate change, stressing the role of development finance institutions.
He said:
- “We live in a world where climatic events are claiming lives; disrupting food systems; limiting infrastructure; and generally slowing down economic growth and development across member nations; while accelerating poverty, to the detriment of mankind.
- “Given the strategic role DFIs play in mobilising resources for national development, we are integral actors in the global response to the climate challenge.
- “As Nigeria’s leading DFI, one of the primary drivers of BoI’s developmental strategy is to accelerate Nigeria’s development through supporting environmentally friendly and sustainable projects across the key sectors of the economy.”
He also disclosed that the BoI’s project portfolio reflects a significant investment in renewable energy projects. The banks seek to contribute to the continental ambition of 27% of renewable power generation by 2030.
On how much has been raised in the past five years, he said:
- “BOI has worked with our partners to raise over $5 billion from several international financial institutions in the last five years. We intend to leverage our extensive partnership to raise the resources required for building a climate-smart Nigeria, in line with our President’s vision.”
About AADFI-ADFIAP Joint CEO Forum
While AADFI stands for Association of African Development Finance Institutions, AADFIAP stands for Association of Development Financing Institutions in Asia & the Pacific.
The forum gathers development finance institutions from Africa, Asia, and the Pacific, covering 33 countries across four continents.
