BOI plans more MSME loans to bridge N13trn funding gap

•To raise annual lending to N1.35trn by 2027

The Bank of Industry (BOI), says it plans to increase the share of its annual loans disbursed to micro, small and medium enterprises (MSMEs) from 15 per cent to 35 per cent as it steps up efforts to tackle Nigeria’s estimated N13 trillion funding gap.

The bank said it also plans to finance 24,000 MSMEs and raise its annual lending to N1.35 trillion by 2027 to boost industrial growth, create jobs and help businesses expand.

The Managing Director and Chief Executive Officer of BOI, Dr. Olasupo Olusi, disclosed this during a media parley yesterday, where he outlined the bank’s 2025–2027 corporate strategy.

Olusi said the bank was changing its lending priorities to reach more small businesses, women, young entrepreneurs and rural enterprises that often struggle to obtain loans from conventional financial institutions.

He said the new strategy was driven by the need to provide long-term funding for industries, support underserved businesses, finance critical infrastructure and strengthen the bank’s financial position and risk management.

“Our objective is to ensure that every naira that has been lent translates into measurable development impacts, particularly jobs, enterprises and output, as well as other development outcomes,” he said.

According to him, BOI has increased its support for small businesses, which accounts for a significant share of employment and economic activities, with more than 31 per cent of its 2025 funding going to MSMEs.

He reiterated that the bank is targeting 35 per cent of its annual financing for the segment, up from its previous allocation of between 10 and 15 per cent.

Olusi said BOI was also working to mobilise more long-term funds to meet the growing financing needs of manufacturers and other businesses.

“We are doing all we can to channel the right pool of funds into manufacturing. However, we do not yet have the full financial resources required. We are doing everything possible to identify the right funding sources to support our plans,” he said.

Reviewing its performance, the BOI chief said the bank disbursed N625 billion to businesses, a 26 per cent increase over the N410 billion recorded in 2024.

He said the funds reached 12,501 businesses and helped create or sustain 1.6 million jobs.

The bank also disbursed N120 billion to women-owned businesses in about a year as part of efforts to expand their access to finance.

Under the strategy, BOI plans to direct at least 15 per cent of its financing to women-owned businesses, while 20 per cent of MSME loan disbursements will go to youth-owned or youth-run enterprises.

Olusi said inadequate power supply, poor transportation and logistics infrastructure remained major challenges for businesses, raising operating costs and limiting productivity.

To address these problems, he said about 25 per cent of the bank’s financing for large projects had been earmarked for infrastructure development.

BOI has committed more than N180 billion to infrastructure projects, including electricity supply and broadband connectivity to more than 700 communities.

The bank is also targeting clean energy, climate-resilient businesses and recycling-related activities, with plans to allocate at least 10 per cent of its total loan portfolio to climate and sustainability investments.

On its intervention programmes, Olusi said the N75 billion MSME Intervention Fund and the N75 billion Manufacturing Sector Fund had recorded more than 45 per cent disbursement.

The programmes have supported 9,000 MSMEs and 104 large manufacturers, alongside grant beneficiaries, he added.

The bank has also expanded lending to rural businesses through its Rural Area Programme on Investment, which covers 50 localities. The initiative has supported nearly 1,000 rural enterprises and more than 8,000 jobs.

To make borrowing easier, Olusi said BOI had introduced a digital portal through which customers could register, apply for loans and monitor their applications.

He said the portal had attracted more than 23,000 registrations, reflecting demand for simpler access to financing.

The managing director said the bank was targeting a doubling of its loan book, disbursements and development impact instruments over the three-year strategy period, with 2027 set aside to consolidate gains and meet its targets.

He added that BOI planned to double its total asset base by 2027 to strengthen its capacity to finance industries and support Nigeria’s economic growth.