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BOI targets 80% loans for power, manufacturing sectors

The Editor by The Editor
August 16 2026
in Business
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BOI targets 80% loans for power, manufacturing sectors

The Bank of Industry (BOI) has unveiled a financing strategy that will see 80 per cent of its lending to large enterprises channelled into priority sectors, including power, manufacturing, agribusiness, pharmaceuticals and digital infrastructure, as it positions itself at the centre of Nigeria’s industrial revival efforts.

The development finance institution said the move forms part of its 2026 strategy aimed at addressing some of the country’s biggest economic challenges, including soaring inflation, persistent foreign exchange shortages, high energy costs and weak industrial productivity.

The bank disclosed the plans in its 2025 Annual Development Impact Report, analysed by our correspondent, describing 2026 as a “strategic inflection point” in its three-year transformation agenda.

According to the report, 35 per cent of its total funding will be channelled to micro, small and medium enterprises, while 80 per cent of financing to large enterprises will be directed to priority sectors.

The bank will also dedicate 30 per cent of large enterprise financing to infrastructure projects, 15 per cent to women-owned businesses, 20 per cent of MSME financing to young entrepreneurs, 10 per cent to green projects and 15 per cent to digital and information technology initiatives.

The report stated, “The year 2026 sits at the centre of BOI’s 2025-2027 transformation agenda. It is the year where strategic intent must translate into tangible sectoral impact, particularly in energy-dependent, FX-exposed and import-substitution sectors that dominate Nigeria’s real economy.

“BOI’s ambition is to double its asset base by 2027 while delivering industrialisation, job creation and economic resilience. By 2026, BOI must already be well into this growth curve, deploying capital at scale into priority sectors and correcting structural bottlenecks that limit Nigeria’s productivity.”

Against the backdrop of elevated borrowing costs, unstable exchange rates, rising energy expenses and weak infrastructure, the BOI said its interventions in 2026 would focus on sectors that directly influence inflation, economic growth and job creation.

According to the report, the bank has identified power and electricity, transport and logistics, manufacturing, agribusiness, pharmaceuticals and digital technology as transformational sectors capable of unlocking productivity and reducing Nigeria’s dependence on imports.

The report stated, “BOI is channelling 35 per cent of funding to MSMEs, 80 per cent of Large Enterprise funding to priority sectors, 30 per cent of all large-enterprise funding to infrastructure, 15 per cent to women, 20 per cent of MSME funding to youth, 10 per cent to green projects, 15 per cent to digital & ICT.

“This means 2026 is when Nigeria’s industrial base begins to receive purpose-built capital instead of generic loans.”

The bank stated, “By 2026, BOI will finance power generation, transmission and distribution, fund industrial parks and logistics corridors and de-risk private investment through guarantees and blended finance.

“This directly attacks energy costs in food processing, logistics failures in agro-processing and chemicals, and foreign exchange demand caused by imports.”

The lender also believes that financing manufacturing and agribusiness can help ease pressure on the foreign exchange market by reducing import dependence.

The report stated, “By financing manufacturing, agribusiness, food processing and pharma, BOI’s 2026 portfolio will expand export-earning industries and import-substitution industries. This reduces FX demand from pharmaceuticals, food and industrial inputs, which are currently FX-dependent sectors.”

The bank noted, “At the macro level, MSMEs and large enterprises share three structural problems: high interest rates and collateral requirements, energy and transport infrastructure gaps, and currency instability and multiple taxation.

“These pressures reduce investment appetite, discourage industrial scale-up and trap most Nigerian firms in survival mode.”

The BOI said its strategy was also designed to support small businesses, which continue to face financing challenges. According to the bank, its digital lending platforms and partnerships with commercial and microfinance banks will provide MSMEs with easier access to funding.

The report stated, “In 2026, BOI’s digital loan platform and on-lending partnerships with microfinance and commercial banks will allow MSMEs to access low-collateral working capital, sector-specific credit products and faster loan approvals.

“This addresses MSME problems of high interest rates, collateral barriers and limited access to finance. The outcome: MSMEs shift from survival to growth.”

The bank also plans to strengthen its internal systems through a major digital transformation programme, which it described as its “digital take-off year.”

According to the report, the bank will deploy centralised data systems, automated loan tracking, digital dashboards and end-to-end online lending processes to improve efficiency and monitor the impact of its interventions.

The lender stated, “Without this digital backbone, the scale of 2026 deployment would be impossible.”

The BOI’s projections come amid growing concerns over the contribution of MSMEs to Nigeria’s economy. With the economy still struggling to achieve broad-based industrialisation and diversify away from oil dependence, the bank’s strategy suggests that 2026 could become a defining year in determining whether Nigeria can build a stronger manufacturing base, reduce import dependence and create more resilient growth drivers.

For the development finance institution, the challenge will be translating ambitious plans and funding commitments into measurable outcomes that can revive industries, create jobs and ease the burden on businesses that have spent years operating in survival mode.

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