The Bank of Industry (BOI) and the African Guarantee Fund (AGF) have inked a $50 million Loan Portfolio Guarantee framework to provide financial and support services to Nigeria’s women-owned enterprises and Micro, Small, and Medium Enterprises (MSMEs).
The African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) program supports the deal signed during the Africa Investment Forum in Rabat. The transaction will be phased out in three tranches over ten years.
BOI managing director and CEO Olasupo Olusi, at the signing ceremony, stated that the bank will strengthen its ties to Nigerian businesses by supporting AGF and giving them the tools they need to grow, innovate for impact, and access new markets.
He clarified that the portfolio, which offers guarantees of up to N75 billion, will open up previously unheard-of possibilities for small businesses, which stand for a robust, equitable, and sustainable Nigerian economy in the future.
He claims that the relationship is in line with the BOI’s goal to guide “Nigeria into a future defined by opportunity, equity, and resilience” and its purpose of propelling industrial transformation.
He stated that BOI has assisted millions of MSMEs, created over nine million employment, and disbursed over 1.6 trillion in loans in the last ten years.
Since its founding, AGF has partnered with 250 partner financial institutions in 44 African nations to unlock over $5 billion in funding for SMEs.
Olusi emphasized, “This agreement with AGF amplifies our capacity to go even further,” praising the Fund for its steadfast dedication to promoting development throughout the continent.
“Your work in de-risking investments and enhancing financial inclusion has been instrumental in enabling transformative change, and we are honored to collaborate with you on this mission.”
“The partnership includes a comprehensive risk-sharing mechanism aimed at assisting MSMEs, Women-Owned Enterprises, and Green Businesses in promoting environmental sustainability and gender equity.”
“By promoting women-owned businesses and ecologically friendly enterprises, we are stating that women must not only participate in Nigeria’s economic story, but also lead it. We are stressing that sustainable, climate-conscious activities are not optional—they are necessary,” Olusi continued.
“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 USD 100 million in financing for SMEs,” stated Jules Ngankam, the chief executive officer of the AGF group.
“AGF will also offer customised guarantees and technical support for the unique SME products that BOI offers, focussing on women, youth, and green businesses.”
The agreement, which both parties view as the beginning of a long-term strategic partnership, perfectly combines the BOI’s mandate to spur Nigeria’s industrialization and economic development with the AGF’s goal of facilitating financing for SMEs.
