The Bank of Industry has unveiled a new financing strategy under which 80 per cent of its lending to large enterprises will be directed towards priority sectors including power, manufacturing, agribusiness, pharmaceuticals and digital infrastructure.
The development finance institution said the strategy forms part of its 2026 plan to support Nigeria’s industrial recovery and address major economic challenges, including high inflation, foreign exchange pressures, elevated energy costs and weak industrial productivity.
The bank disclosed the plan in its 2025 Annual Development Impact Report, describing 2026 as a “strategic inflection point” in its three-year transformation agenda.
Under the strategy, 35 per cent of BOI’s total funding will be allocated to micro, small and medium-sized enterprises, while 80 per cent of financing for large enterprises will be channelled into sectors considered critical to economic development.
The bank also outlined specific targets for its large-enterprise financing portfolio. About 30 per cent is expected to go towards infrastructure projects, while 15 per cent will be targeted at women-owned businesses. In addition, 20 per cent of MSME financing will be dedicated to young entrepreneurs, while 10 per cent will support green projects and another 15 per cent will be allocated to digital and information technology initiatives.
The financing strategy reflects growing efforts by the Federal Government and development finance institutions to stimulate productive investment rather than simply expand access to credit.
Power and manufacturing are expected to receive particular attention because of their importance to Nigeria’s industrial capacity. Persistent electricity challenges and high energy costs have continued to increase production expenses for manufacturers, while inadequate access to affordable long-term financing remains a major constraint for businesses seeking to expand.
By directing a larger share of its lending towards these areas, the BOI is seeking to support investments capable of increasing domestic production, creating employment and reducing dependence on imported goods.
The emphasis on agribusiness and pharmaceuticals also aligns with efforts to strengthen local value chains. Increased investment in agro-processing could enable Nigeria to capture more value from its agricultural output, while financing for pharmaceutical businesses could support domestic production and reduce dependence on imported medicines and healthcare products.
The bank’s focus on digital infrastructure further reflects the growing importance of technology to Nigeria’s economic development. Investments in digital systems and infrastructure could support businesses, improve productivity and expand access to technology-driven services.
The BOI strategy also places considerable emphasis on inclusion. Its targets for women-owned businesses and young entrepreneurs indicate an attempt to ensure that development financing reaches groups that have traditionally faced difficulties accessing conventional credit.
The bank’s approach comes against the backdrop of continued efforts to attract investment and strengthen Nigeria’s productive economy. High borrowing costs, inflation and infrastructure gaps have made access to affordable financing particularly important for businesses seeking to survive and expand.
For MSMEs, which account for a substantial portion of economic activity and employment in Nigeria, the planned allocation of 35 per cent of total funding could provide additional opportunities for businesses with viable projects but limited access to commercial financing.
The strategy also includes an environmental component, with 10 per cent of financing targeted at green projects. This could support investments in cleaner energy, resource efficiency and other projects aligned with the transition towards a more sustainable economy.
The BOI’s new lending priorities therefore represent a broader attempt to use development finance as a tool for industrialisation, job creation and economic diversification.
However, the effectiveness of the strategy will ultimately depend on how quickly funds reach qualified businesses, the affordability of the loans and the ability of financed projects to translate into increased production and employment.
As Nigeria continues to grapple with economic pressures, the BOI’s targeted lending programme is expected to play a significant role in supporting businesses and sectors considered central to the country’s long-term industrial development.
