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 funding for businesses operating in key sectors of the Nigerian economy.
The approval was disclosed in a statement published on the AfDB’s website on Friday, highlighting the bank’s continued support for Nigeria’s industrialisation and private sector development agenda.
According to the development finance institution, the facility is expected to support enterprises in strategic sectors including infrastructure, transportation, agro-processing, healthcare, pharmaceuticals, and green industrialisation.
What the AfDB is saying
The AfDB said the financing package is designed to strengthen industrial growth while improving access to funding for small and medium-sized enterprises (SMEs), particularly businesses owned by women and young entrepreneurs.
- “Nigeria’s industrial transformation requires more patient, long-term capital than the market is structured to provide,” said Abdul Kamara, Director General for Nigeria at the African Development Bank Group.
- “This approval directs capital to work in areas where it matters most, supporting SMEs, women entrepreneurs, and young business owners driving Nigeria’s industrial growth and economic diversification.”
BOI Managing Director and Chief Executive Officer, Olasupo Olusi, said the facility builds on the institution’s existing partnership with the AfDB following the successful repayment of an earlier $100 million credit line in 2025.
The AfDB noted that at least 30% of the facility’s proceeds are expected to benefit Nigerian SMEs, helping to address longstanding financing gaps facing small businesses across the country.
Get up to speed
The financing package also includes a $650,000 technical assistance grant from the Fund for African Private Sector Assistance (FAPA) to strengthen SME capacity and improve environmental, social, and governance standards.
According to the AfDB, the intervention will support climate-smart investments and low-carbon industrial projects across Nigeria.
- The facility will finance renewable energy projects, climate-smart agriculture, energy-efficient industrial operations, and sustainable infrastructure solutions.
- An additional technical assistance component under the Affirmative Finance Action for Women in Africa (AFAWA) initiative will improve access to finance and markets for women-owned businesses.
- The intervention is also expected to strengthen local manufacturing and healthcare value chains while reducing Nigeria’s dependence on imports.
The AfDB said the financing aligns with broader efforts to support economic diversification and private-sector-led growth in Nigeria.
What you should know
In November, AfDB approved a $500 million loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme.
As of 31 October 2025, the AfDB’s active portfolio in Nigeria consisted of 52 projects valued at $5.1 billion.
