AfDB Approves $200m BoI Loan To Boost Nigeria’s Industrial....

The African Development Bank (AfDB) has approved a $200 million financing facility for the Bank of Industry (BoI) in a major push to strengthen Nigeria’s industrial sector, expand private sector productivity and support small businesses battling high borrowing costs.

The intervention is expected to provide medium- and long-term financing to manufacturers and businesses operating in critical sectors of the economy, including infrastructure, transport, agro-processing, healthcare, pharmaceuticals and green industrialisation.

The AfDB said the funding aligns with broader efforts to deepen Nigeria’s industrial capacity, improve economic competitiveness and stimulate inclusive growth amid ongoing economic reforms.

According to the bank, at least 30 per cent of the facility will be channelled to Micro, Small and Medium Enterprises (MSMEs), with priority support targeted at women-owned and youth-led businesses.

The development comes at a time when many Nigerian manufacturers and small businesses are struggling with elevated interest rates, rising energy costs, foreign exchange volatility and weak consumer demand.

Analysts said the fresh financing could provide critical relief for businesses seeking expansion capital and long-term funding in an economy where access to affordable credit remains a major constraint to industrial growth.

In addition to the $200 million facility, the AfDB also approved a $650,000 grant through the Fund for African Private Sector Assistance to strengthen SME capacity and support climate-smart business initiatives.

The bank said the package would also include technical support under its Affirmative Finance Action for Women in Africa (AFAWA) initiative aimed at improving financing access for women-led enterprises.

According to the AfDB, the intervention is expected to drive job creation, boost non-oil exports, strengthen local manufacturing and reduce Nigeria’s dependence on imported industrial goods.

Director-General of AfDB’s Nigeria Country Department, Abdul Kamara, said the approval reflects the bank’s confidence in Nigeria’s industrial potential and commitment to supporting private sector-led growth.

Kamara noted that stronger local enterprises would play a critical role in accelerating economic diversification and sustainable industrial transformation.

“The financing will support SMEs, women entrepreneurs and youth-led businesses, driving economic diversification,” he stated.

Managing Director of the Bank of Industry, Olasupo Olusi, described the facility as another milestone in the longstanding partnership between both institutions.

Olusi said the financing would unlock investment opportunities, support local manufacturing and create jobs across strategic sectors of the economy.

He added that the intervention would strengthen Nigeria’s long-term industrialisation agenda and promote inclusive economic growth nationwide.

Economic experts say the latest AfDB intervention underscores growing international support for Nigeria’s industrial sector despite current macroeconomic challenges facing businesses.

The funding is also expected to complement ongoing government efforts aimed at reducing import dependence, expanding domestic production and positioning the private sector as a key driver of economic recovery and growth.