A $50 million loan has been secured by the Bank of Industry (BOI) from the International Finance Corporation (IFC) to expand long-term financing for small businesses and productive enterprises across Nigeria.
The seven-year financing agreement was signed at the Africa Financial Industry Summit 2026 in Luanda, Angola, as part of a wider investment package of up to $100 million being provided by IFC to strengthen BOI’s lending capacity.
At least 25 per cent of the loan proceeds has been reserved for women-owned businesses, while enterprises in manufacturing, agriculture, renewable energy and the creative industries are expected to benefit.
The agreement was signed by BOI Managing Director and Chief Executive Officer, Olasupo Olusi, and IFC Managing Director, Makhtar Diop.
Through the facility, additional long-term funding is expected to be made available to micro, small and medium-sized enterprises (MSMEs) seeking capital for business expansion, equipment purchases and increased production.
Women-owned enterprises given priority
A dedicated share of the financing has been allocated to women-owned and women-led businesses as part of efforts to improve their access to institutional credit.
The intervention is expected to support businesses that have faced difficulties obtaining financing with repayment periods suited to their investment needs.
Manufacturing and agricultural enterprises are also expected to benefit from improved access to capital, while renewable energy and creative industry businesses have been included among the priority sectors.
The seven-year loan period is expected to strengthen BOI’s funding base and enable longer-term financing to be provided to eligible enterprises.
Commenting on the agreement, Olusi described the partnership as a vote of confidence in the bank’s mandate and institutional capacity.
He said the facility would strengthen BOI’s ability to finance productive businesses, expand opportunities for women entrepreneurs and support sustainable job creation.
IFC Managing Director, Diop, said access to long-term finance was essential for smaller businesses to grow, create employment and strengthen local supply chains.
He added that the partnership would combine direct financing with domestic capital market solutions to attract additional private investment.
Further $50m investment planned
In addition to the signed loan, an investment of up to $50 million has been proposed for BOI’s domestic bond issuance.
The proposed investment is expected to attract funds from pension funds, asset managers and other private investors. At least 10 per cent of the bond proceeds has been earmarked for MSME financing.
The wider package is therefore expected to increase the amount of long-term capital available to businesses while encouraging greater participation in Nigeria’s domestic capital market.
The development comes as access to affordable financing remains a major concern for Nigerian MSMEs. High borrowing costs and limited long-term credit have continued to affect business expansion, production and investment.
According to BOI, the partnership is aligned with its priorities of enterprise development, gender inclusion and sustainable industrialisation.
However, the bank and IFC are still expected to complete the definitive financing documentation and fulfil the customary conditions required before implementation.
The impact of the agreement will ultimately depend on how effectively the additional financing is channelled to eligible businesses across the country.
