KEY POINTS

• The Bank of Industry targets ₦1.85 trillion in annual lending and financing for 24,000 micro, small and medium enterprises under its 2025-2027 corporate strategy.
• The bank aims to create and sustain three million jobs between 2025 and 2027, following record disbursements of ₦625 billion in 2025.
• BOI plans to allocate at least 10 per cent of its portfolio to climate-related financing, while expanding support for technology-led businesses, women-owned enterprises and youth-led businesses.

MAIN STORY

The Bank of Industry (BOI) is targeting ₦1.85 trillion in annual lending and financing for 24,000 micro, small and medium enterprises (MSMEs), alongside three million jobs between 2025 and 2027, as it seeks to expand industrial production and access to long-term capital.

The Managing Director of BOI, Olasupo Olusi, disclosed the targets on Thursday during an engagement with media executives in Lagos, where he outlined the bank’s corporate strategy for the three-year period.

The strategy prioritises manufacturing, agriculture, local healthcare, climate-friendly businesses and technology-driven enterprises, with the aim of strengthening domestic production, widening access to financing and supporting sustainable employment.

Olusi said the bank was also working to address financing gaps in climate-related investments and the digital economy. Its 2X ambition is to double its loan book, disbursements and impact instruments within three years, supported by six thematic areas with specific targets to guide implementation and measure progress.

“We will deploy many of the resources that we need for growth in our country, in areas such as agriculture, local healthcare and manufacturing.

“This is so that Nigeria is able to provide more of the stuff of the food that it consumes and of medicines, all the relevant key materials,” he said.

The 2025-2027 strategy is structured into three phases. Olusi described 2025 as the foundation year, during which the bank established governance frameworks, products, digital tools and budgetary provisions. He said 2026 was focused on execution and scale, while 2027 would concentrate on consolidating results and meeting targets.

BOI disbursed a record ₦625 billion in 2025, supporting the creation and sustenance of 1.6 million jobs and reaching 12,501 businesses, according to Olusi. The amount represented a 26 per cent increase over the ₦410 billion recorded in 2024.

MSMEs received more than 31 per cent of the bank’s funding in 2025, while approximately ₦120 billion was disbursed to women-owned businesses. Olusi said BOI would continue expanding financing for underserved enterprises, particularly women-owned and youth-led businesses, while strengthening its ability to mobilise funds from domestic and international markets.

The bank also plans to deepen support for local production in line with the Federal Government’s Nigeria First policy.

“Our mission is very simple. We have to finance what Nigeria makes,” Olusi said.

Climate and sustainability financing form another part of the strategy. Olusi said BOI planned to allocate at least 10 per cent of its entire portfolio to the sector, including clean energy, climate-resilient businesses and circular-economy initiatives. He said climate-smart considerations would be integrated into financing decisions to ensure investments remained sustainable and responsive to environmental challenges.

The bank also intends to expand financing for the digital economy by supporting technology-led businesses and the digitalisation of Nigerian enterprises.

“On the digital front, we know that digital economy provides one of the biggest opportunities for economic growth and development of our country.

“So, we are very committed to financing technology-led businesses and digitalisation of Nigerian enterprises,” Olusi said.

Dr Uche Nwachukwu, Chief Impact Officer, Strategy, Policy and Research Division at BOI, said the strategy was designed to promote sustainable and inclusive industrial development through tailored financing for underserved businesses and high-impact sectors.

According to Nwachukwu, BOI plans to expand access to finance through low-collateral loans, project finance, guarantees, equity investments and advisory services. The bank will also extend its reach through a digital portal, on-lending partners and a network of Business Development Service Providers.

The strategy includes diversifying funding sources through sector-specific funds, improved financing terms and additional equity, while using technology, data and strategic partnerships to implement programmes.

Nwachukwu said BOI had set targets for key beneficiary groups, including allocating 35 per cent of funding to MSMEs, directing 30 per cent of large-enterprise funding to infrastructure, allocating 15 per cent of funding to women-owned businesses and reserving 20 per cent of MSME funding for youth-led enterprises.

For climate finance, the bank plans to implement a Sustainable Finance Framework to facilitate green bond issuance and establish a Carbon Credit Grant Facility. Climate screening will also be incorporated into every financing appraisal, supported by an action plan to identify investment opportunities and develop strategic partnerships.

In digital financing, Nwachukwu said BOI would leverage the $617.7 million Investment in Digital and Creative Enterprises (IDICE) programme to expand access to capital for technology and creative businesses. Broadband connectivity and information and communications technology will remain priority areas, alongside efforts to improve digital market access and innovation.

He added that partnerships and financing lines from the European Investment Bank would support agricultural value chains and local healthcare manufacturing. The interventions are intended to improve Nigeria’s capacity to meet domestic demand through local production, create jobs and strengthen industrial development.

Olusi called for sustained collaboration with the media to communicate the impact of development financing and strengthen accountability in implementing the bank’s programmes.

THE ISSUES

BOI’s targets place development finance at the centre of efforts to expand Nigeria’s productive capacity. Financing manufacturing, agriculture and healthcare could help businesses increase output and reduce dependence on imported goods, but the impact will depend on whether funding reaches viable enterprises and translates into competitive local production.

The bank’s 2025 disbursement figures provide a starting point for assessing its ambitions. The ₦625 billion distributed to 12,501 businesses and the reported creation and sustenance of 1.6 million jobs indicate the scale of its recent activity. However, achieving the new targets will require sustained financing growth, and job creation will need to be measured alongside job retention, business performance and the quality of employment supported.

The strategy’s funding allocations also raise questions about access. Low-collateral loans, guarantees, equity investments and on-lending partnerships could provide alternatives for businesses that struggle to meet conventional lending requirements. Their effectiveness will depend on the eligibility criteria, financing costs, application processes and reach of the delivery channels.

Climate and digital financing represent opportunities to support emerging sectors, but they also require appropriate project assessment and risk management. BOI’s planned climate screening and Sustainable Finance Framework could help integrate environmental risks into lending decisions, while digital financing could expand the capacity of technology and creative businesses to develop products and reach markets.

The allocation targets for MSMEs, women-owned businesses, youth-led enterprises and infrastructure will also require clear monitoring. The bank’s ability to demonstrate who receives financing, how funds are used and what economic outcomes follow will be important in assessing whether its strategy delivers inclusive industrial growth.

WHAT’S BEING SAID

“We will deploy many of the resources that we need for growth in our country, in areas such as agriculture, local healthcare and manufacturing.

“This is so that Nigeria is able to provide more of the stuff of the food that it consumes and of medicines, all the relevant key materials,” – Olasupo Olusi, Managing Director, Bank of Industry

“Our mission is very simple. We have to finance what Nigeria makes,” – Olasupo Olusi, Managing Director, Bank of Industry

“On the digital front, we know that digital economy provides one of the biggest opportunities for economic growth and development of our country.

“So, we are very committed to financing technology-led businesses and digitalisation of Nigerian enterprises,” – Olasupo Olusi, Managing Director, Bank of Industry

WHAT’S NEXT

With 2026 designated as the execution and scale phase, attention will turn to how quickly BOI can expand disbursements, reach more businesses and demonstrate progress towards its employment target. Its 2025 performance provides a baseline against which subsequent financing and impact figures can be assessed.

Implementation of the Sustainable Finance Framework, the proposed Carbon Credit Grant Facility and climate screening requirements will be important developments to monitor. Their progress could indicate how the bank translates its climate-financing ambition into funded projects.

The reach of the IDICE programme, digital financing channels and on-lending partners will also help determine whether smaller and emerging businesses can access capital beyond the bank’s direct lending relationships.

By 2027, the key measures of performance will include progress towards the annual financing target, the number and types of businesses supported, employment outcomes, and evidence that financing has strengthened domestic production.

BOTTOM LINE

BOI’s 2025-2027 strategy sets ambitious targets for financing, employment and industrial development, with priorities spanning MSMEs, local manufacturing, climate-related investment and the digital economy. Delivering on those ambitions will depend on effective implementation, wider access to capital and demonstrable results for businesses and the Nigerian economy.

Source: NAN