BOI, African Guarantee Fund sign $50m deal fund Nigerian SMEs

The Bank of Industry (BOI) and African Guarantee Fund (AGF) have signed a $50 million loan portfolio to scale up financial and support services to women-owned businesses and small and medium enterprises (SMEs) in Nigeria.

The agreement which was signed at the Africa Investment Forum in Rabat is backed by African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative. The transaction will be phased out in three tranches over 10 years.

Olasupo Olusi, BOI managing director/CEO, said at the signing event that through AGF’s support, the bank would deepen its commitment to Nigerian enterprises, and provide them with resources to scale their operations, innovate for impact and expand into new markets.

He explained that the portfolio which guarantees up to N75 billion, would unlock opportunities for small enterprises that represent a resilient, inclusive and sustainable economic future for Nigeria.

The partnership, according to him, aligned with the BOI’s mission to drive industrial transformation and vision to lead “Nigeria into a future defined by opportunity, equity and resilience.”

He said that over the past decade, BOI has disbursed over N1.6 trillion in loans, supported millions of MSMEs, and created over nine million jobs.

On its part, AGF has since inception unlocked more than $5 billion in SME financing, through partnerships with 250 partner financial institutions across 44 African countries.

“This agreement with AGF amplifies our capacity to go even further,” Olusi stressed, commending the Fund for its unwavering commitment to supporting development across the continent.

“Your work in de-risking investments and enhancing financial inclusion has been instrumental in enabling transformative change, and we are honoured to collaborate with you on this mission.

The partnership includes a comprehensive risk-sharing mechanism that focuses on supporting MSMEs, women-owned enterprises and green businesses to promote environmental sustainability and gender equity.

Jules Ngankam, AGF group CEO, said, “This transaction with the leading Development Finance Institution in Nigeria is a great milestone that will significantly impact Nigeria’s economy by unlocking up to $100 million in financing for SMEs.