The Bank of Industry has secured a $200 million financing facility from the African Development Bank Group to increase funding support for small and medium scale businesses, as well as women and youth owned enterprises across Nigeria.
The funding, approved by the board of directors of AfDB, is expected to improve access to medium and long term financing for businesses operating in sectors considered vital to Nigeria’s industrial and economic transformation agenda. These sectors include infrastructure, transportation, agro processing, healthcare, pharmaceuticals and green industrialisation. According to the report, at least 30 per cent of the financing facility will be directed towards supporting Nigerian SMEs. The intervention is also expected to benefit women led and youth driven businesses that often struggle to access affordable financing from commercial banks.
Managing Director and Chief Executive Officer of BoI, Dr. Olasupo Olusi, described the approval as another major step in the long standing partnership between the two institutions. He said the facility would improve the bank’s ability to provide long term loans to enterprises operating in sectors that are critical to economic development.Olusi stated that the support followed the successful repayment of an earlier $100 million credit facility obtained from AfDB, which was fully settled in 2025.
According to him, the new financing package is expected to strengthen local manufacturing, create jobs and support sustainable economic growth across the country. He added that beyond financial support, the intervention would also help expand opportunities for SMEs while empowering women and youth owned businesses in strategic sectors of the economy.
The AfDB financing package also includes a $650,000 technical assistance grant from the Fund for African Private Sector Assistance. The grant will support SME capacity development, improve environmental and governance standards and strengthen climate smart business initiatives. In addition, the Affirmative Finance Action for Women in Africa initiative will provide technical support aimed at improving access to finance, markets and business value chains for women entrepreneurs.
Director General of AfDB Nigeria, Abdul Kamara, said the approval reflects the bank’s commitment to supporting Nigeria’s industrial growth and private sector expansion. He explained that long term capital remains necessary for industrial transformation, especially in areas where commercial banks are unable to provide sufficient funding. AfDB also noted that the financing would encourage investments in renewable energy, climate smart agriculture, energy efficient industrial operations and sustainable infrastructure.
The institution said the intervention is expected to improve productivity, strengthen healthcare and pharmaceutical value chains and reduce the country’s dependence on imports over time.
