BOI, AFD sign $30m deal to fund creative businesses

The Bank of Industry (BOI) and France’s development agency, Agence Française de Développement (AFD), have signed a $30 million credit facility to finance businesses in Nigeria’s creative and cultural industries, with priority for youth-led and women-led enterprises.

The agreement was signed in Abuja by BOI Managing Director, Dr. Olasupo Olusi, and AFD Chief Executive Officer, Christophe Lecourtier.

Olusi described the deal as a major milestone in the partnership between both institutions, saying it would expand access to finance for a sector with significant potential for job creation and economic growth.

He said music, film, fashion, design and gaming offered opportunities to create jobs for young Nigerians and diversify the economy.

“The creative sector represents one of the biggest growth opportunities for the Nigerian economy, as it has the biggest capacity to absorb young people and create jobs,” he said.

Olusi said the facility aligned with President Bola Tinubu’s Renewed Hope Agenda and the Federal Government’s ambition to grow the economy to $1 trillion.

He identified access to affordable financing as a major challenge facing creative businesses, adding that the facility would help address the funding gap.

“We’re very excited because particular attention will be given to women-led businesses and youth-led businesses.

“This financing will bridge a very important gap, not only in providing large quantum of financing but also at an affordable cost,” he said.

The BOI managing director assured the French agency that the funds would be prudently deployed to credible businesses with growth potential.

In his remarks, Lecourtier described BOI as AFD’s leading development banking partner in Nigeria and its largest partner for non-sovereign loans.

He recalled that the institutions’ earlier collaboration included a credit line of more than €100 million focused on climate-related projects under the Transforming Financial Systems for Climate programme.

Lecourtier said the creative and cultural industries were important to France, adding that Nigeria had established a strong presence in the sector across Africa.

“Cultural and creative industries are very important for the French, but you are probably the leader in Africa for that.

“I know more and more French people that are listening to Nigerian music and watching Nigerian films. For us, it’s great to be able to work together and support such a growing sector,” he said. He expressed hope that the results of the new facility would encourage further cooperation between Nigeria and European partners.

Lecourtier also disclosed that BOI and AFD were discussing another credit line that would reflect Nigeria’s development priorities.

He commended relations between Nigeria and France, noting that both countries continued to pursue areas of shared interest despite changing global priorities.