BoI, AGF Sign $50m Deal to Empower Women Entrepreneurs and MSMEs

The Bank of Industry (BoI) has signed a $50 million portfolio guarantee agreement with the African Guarantee Fund (AGF), aimed at revolutionizing access to finance for women entrepreneurs, Micro, Small, and Medium Enterprises (MSMEs), and green businesses across Nigeria.

The agreement which was signed on Thursday at the Africa Investment Forum (AIF) in Rabat, Morocco is in support of the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA), guarantees up to N75 billion in financing and promises to be a game-changer for businesses long constrained by limited financial resources.

The agreement targets two critical sectors often overlooked by traditional financing: empowering women-owned businesses, supporting environmentally sustainable enterprises, providing critical financial resources for business expansion, and facilitating innovation and market entry.

Dr. Olasupo Olusi, BoI’s Managing Director, described the agreement as more than a financial transaction. He said:

“Today, we signify a collaboration that promises to drive inclusive growth, innovation and sustainable development. With this portfolio guarantee of up to 50 million dollars, we are unlocking unprecedented opportunities for these enterprises that represent a resilient, inclusive and sustainable economic future for our great nation, Nigeria.

“As you can imagine, MSMEs form the backbone of our economy and it is very important for our country to encourage them, to continue to support them, to make them create jobs and to support the long-term growth of the Nigerian economy.

“Through AfDB’s support, BOI will deepen its commitment to reasonable prices, providing them with resources to scale their operations, innovate for impact and expand with new markets.

“By prioritising women-owned businesses and environmentally sustainable enterprises, we are saying that women must not just participate in Nigeria’s economic history, they must lead it. We are saying that sustainable, climate-conscious practises are not functional, but they are imperative.

“This partnership also aligns strategic investment with the BOI’s vision to attract industrial transformation and our vision to keep Nigeria into a future defined by opportunity, legitimacy and resilience.

“Over the past decade, BOI has disbursed over 1.6 trillion Naira in loans, supported millions of MSMEs and created millions of jobs. These agreements with AfDB are the first of the past decade to go further…

“The lives it will touch, the businesses it will empower, and the legacy it will leave. And for us in Nigeria, that is very important because it aligns well with the vision of  investment, energy power and opportunity.

“Let us also commit to ensuring that the impact of this partnership which resonates beyond discourse, brings new climate and transatlantic prosperity for the continent.

“The road ahead is long, but it’s worth the wait. I’m delighted to have played your games. Together, we will ensure that the seeds of opportunity sown here today, grow to harvest prosperity in Nigeria,” he said.

Over the past decade, BoI has already demonstrated its commitment to economic development, disbursing over N1.6 trillion in loans, supporting millions of MSMEs, and creating more than nine million jobs. This new agreement promises to amplify that impact exponentially.

Expressing  high hopes that the target population would effectively utilize and repay the loan in due time, Olusi said: “There are a number of women enterprises in Nigeria, and there are partnerships. Recently, we signed the Wi-Fi Code in partnership with the Central Bank of Nigeria and the Development Bank of Nigeria to compete to finance women enterprises.

“This agreement or partnership with the AGF will enhance the capacity to deliver much-needed credits to women-owned institutions and businesses in the country. We are looking forward to the partnership.

“There’s quite a lot of women who are out there and women-owned enterprises that are really looking forward to getting the support of the Bank of Industry to scale their operations and also to create jobs.

“And this is critical for our economy, as you can imagine.

Now, something that is important to say is that, you know, women are very efficient when it comes to the repayment of loans. This is a very well-established fact and so we’re very particular about supporting them.

“We’ve seen many of the loans fully dedicated to women are well-managed, and they are paid on time and we believe that, you know, this agreement (1:20) that we’re going to be working on will be a major boost for women-owned enterprises,” he explained.