BOI, IFC sign $50 million loan to expand finance for Nigeria’s MSMEs

Bank of Industry Limited (BOI) and International Finance Corporation (IFC) have signed a $50 million senior loan to expand long-term financing for micro, small and medium-sized enterprises (MSMEs) across Nigeria.

The deal forms part of a broader IFC investment package of up to $100 million in support of BOI, with at least 25 percent of the loan proceeds dedicated to women-owned businesses.

The agreement was signed at the Africa Financial Industry Summit (AFIS) 2026 by Olasupo Olusi, the Managing Director/Chief Executive Officer of BOI, and Makhtar Diop, Managing Director of IFC. IFC is a member of the World Bank Group.

The seven-year tenor of the loan will strengthen BOI’s funding base and allow it to extend longer-term finance to productive businesses in manufacturing, agriculture, and renewable energy.

The deal will also extend finance to the Nigerian creative industries with the potential for job creation for the country’s growing youthful population.

According to the stakeholders, the deal is focused on accelerating industrial development, supporting productive enterprises, in action.

It will also combine direct development finance with domestic capital market mobilisation to crowd in longer-term funding for enterprise growth.

BOI said the agreement reinforces its ability to channel patient capital to businesses that create jobs, strengthen local value chains and support Nigeria’s inclusive industrial development.

Speaking on the approval, Mr Olusi said the transaction demonstrates the power of strategic development finance partnerships.

“This partnership represents a strong vote of confidence in BOI’s mandate, institutional capacity and role in advancing Nigeria’s industrial development,” the BOI MD said.

According to him, the $50 million facility will strengthen the bank’s ability to provide long-term financing to MSMEs and productive enterprises with a deliberate focus on expanding opportunities for women-owned businesses.

“Beyond the immediate financing, our collaboration with IFC reflects a shared commitment to mobilising capital, supporting enterprise growth and creating sustainable jobs,” Mr Olusi said.

The BOI CEO added that the financial institution sees the deal as an important milestone in building a deeper strategic partnership that will contribute meaningfully to Nigeria’s economic transformation.

On his part, Mr Diop stated that expanding access to long-term finance is essential to helping Nigeria’s smaller businesses grow, create jobs, and strengthen local value chains.

“Through our partnership with the Bank of Industry, we are combining financing with local capital-market solutions to mobilize more private capital and expand local-currency funding for MSMEs, including women-owned businesses,” IFC’s Managing Director said.

The IFC support aligns with BOI’s strategic priorities around MSME development, gender inclusion, enterprise growth and sustainable industrialisation.

In October, the BOI‘s boss, Mr Olusi, said the bank disbursed N644.9 billion to Nigerian enterprises in 2025, of which N120.9 billion went to women-owned businesses.

According to him, women-owned and youth-owned businesses received 20 per cent each in 2025, against the bank’s minimum targets of 15 per cent and 20 per cent, respectively. Also, MSMEs accounted for 41 per cent of the total funding, exceeding the bank’s 35 per cent target for the year.

BOI said the agreement with IFC supports the Federal Government of Nigeria’s broader objective of expanding private sector-led growth, deepening access to finance and strengthening Nigeria’s productive base.

The bank said it will continue to work with IFC towards completion of the definitive financing documentation and fulfilment of all customary conditions required for implementation.

BOI is Nigeria’s leading development finance institution, providing long-term financing and advisory support to enterprises across key sectors of the Nigerian economy.

IFC, the largest global development institution, is focused on the private sector in emerging markets, with operations in more than 100 countries.

In fiscal year 2026, IFC said it committed a record $105 billion to private companies and financial institutions in developing countries.