The Bank of Industry (BoI) has signed a $50 million portfolio guarantee agreement with the African Guarantee Fund (AGF) to boost financing for women entrepreneurs and micro, small, and medium enterprises (MSMEs) in Nigeria.
The agreement, signed on Thursday at the Africa Investment Forum (AIF) in Rabat, Morocco, is part of the Affirmative Finance Action for Women in Africa (AFAWA) initiative launched by the African Development Bank (AfDB).
The partnership will guarantee up to ₦75 billion in loans, aimed at driving inclusive growth, sustainable development, and gender equity in Nigeria’s economy.
Speaking at the signing ceremony, Olasupo Olusi, Managing Director and CEO of BoI, described the initiative as a transformative step for Nigerian MSMEs, particularly women-owned businesses.
“This landmark initiative represents a new chapter for small businesses that have long struggled with limited access to finance.
By prioritizing women-owned businesses and environmentally sustainable enterprises, we are ensuring that women don’t just participate in Nigeria’s economic growth—they lead it,” Olusi said.
He highlighted that the partnership would enhance BoI’s capacity to provide credits, enabling enterprises to scale operations, innovate, and expand into new markets.
The partnership also focuses on supporting green businesses and promoting climate-conscious practices.
Olusi emphasized that sustainability is no longer optional but essential for economic growth.
“This agreement will enhance our ability to deliver much-needed credits to women-owned and environmentally sustainable businesses.
With partnerships like this, we are better positioned to make a lasting impact,” he added.
Jules Ngankam, Group CEO of the African Guarantee Fund, described the agreement as a milestone for Nigeria’s economy.
“This transaction will unlock up to $100 million in financing for SMEs, with tailored guarantees and technical assistance for BoI’s special SME products targeting women, youth, and green businesses,” Ngankam said.
He commended BoI’s leadership in promoting financial inclusion and sustainable growth, noting that the AGF is committed to de-risking investments and supporting transformative development across Africa.
The partnership includes a robust risk-sharing framework designed to de-risk loans and enhance access to financing for MSMEs.
This mechanism aims to reduce barriers to credit for small businesses, particularly those owned by women and youth, while fostering environmental sustainability.
With the signing of this agreement, Nigerian MSMEs can expect increased access to financing, which has long been a barrier to their growth.
By focusing on women-led businesses and green enterprises, the initiative aligns with broader efforts to achieve gender equity and climate resilience in Nigeria.
The BoI-AGF partnership signals a strong commitment to driving inclusive and sustainable economic development in Nigeria, ensuring that small businesses remain a critical engine for growth and innovation.