BOI to Channel 80% of Large Enterprise Loans to Priority Sectors

By Benson Daniel

The Bank of Industry has announced plans to direct 80 per cent of its financing for large enterprises to priority sectors as part of its strategy to accelerate industrial development, create jobs and strengthen Nigeria’s productive capacity.

The development is contained in the bank’s 2025 Annual Development Impact Report, which outlines its priorities for 2026 under a broader three year transformation agenda.

Under the strategy, power and electricity, manufacturing, agribusiness, pharmaceuticals, transport and logistics, and digital technology have been identified as key sectors capable of addressing some of the structural challenges confronting the Nigerian economy.

The bank said the focus on these areas is intended to tackle high energy costs, infrastructure gaps, foreign exchange pressures and weak industrial productivity, which continue to affect businesses across the country.

Power is expected to receive particular attention because unreliable and expensive electricity remains one of the major constraints facing manufacturers and other productive businesses. BOI plans to support projects covering power generation, transmission and distribution, while also financing industrial parks and logistics corridors.

The institution also intends to use guarantees and blended finance arrangements to reduce investment risks and encourage greater private sector participation in infrastructure development.

Manufacturing and agribusiness will form another major part of the lending strategy. BOI expects increased financing for local production and food processing to help reduce Nigeria’s dependence on imported goods and lower demand for foreign exchange.

The bank believes that supporting manufacturers and businesses involved in processing agricultural commodities can increase domestic production, strengthen value chains and create additional employment opportunities.

Pharmaceuticals have also been identified as a priority because of Nigeria’s heavy reliance on imported medicines and pharmaceutical inputs. Increased domestic production could help reduce import dependence while improving the resilience of the healthcare supply chain.

Alongside its large enterprise strategy, BOI plans to channel 35 per cent of its overall funding to micro, small and medium enterprises.

The bank has also set specific targets for inclusive and sustainable financing. These include directing 15 per cent of funding towards women owned businesses, allocating 20 per cent of MSME financing to young entrepreneurs and dedicating 10 per cent of its financing to green projects. Digital and information technology initiatives are expected to receive 15 per cent of funding.

The strategy comes as Nigerian businesses continue to face high borrowing costs, exchange rate volatility, elevated energy expenses and inadequate infrastructure.

BOI said these challenges have limited investment and expansion by businesses, particularly firms that require significant capital to increase production.

The development finance institution also plans to expand digital lending and partnerships with commercial and microfinance banks to improve access to finance for smaller businesses.

Its digital transformation programme is expected to introduce centralised data systems, automated loan tracking, digital dashboards and end to end online lending processes.

The bank said the measures would improve efficiency, speed up loan processing and make it easier to monitor the impact of its interventions.

BOI also aims to double its asset base by 2027 while supporting industrialisation, employment generation and economic resilience.

The lending strategy therefore represents an attempt to move development financing towards sectors with the greatest potential to influence production, employment and economic growth.

If effectively implemented, increased financing for power, manufacturing and other priority industries could help Nigerian businesses expand their productive capacity and reduce some of the structural constraints that have continued to limit industrial growth.