The Nigerian Federal Government, in collaboration with the Bank of Industry (BoI), is set to roll out an innovative on-lending financing scheme aimed at bolstering the adoption of clean energy solutions. Dr. Olasupo Olusi, the Managing Director and CEO of BoI, unveiled this plan during the ongoing AADFI-ADFIAP Joint CEO Forum in Abuja on Thursday.
The forum, which brings together development finance institutions from Africa, Asia, and the Pacific, serves as a platform for discussing strategies to address global economic challenges and foster sustainable development.
Emphasizing the importance of resilient institutions to attract affordable long-term finance for green projects, Olusi highlighted BoI’s proactive approach to resourcing climate-friendly funds. Notably, the bank recently secured a credit line of 100 million Euros from the French Development Agency (AFD) to expand green finance initiatives in Nigeria. In addition to this, BoI is actively implementing an on-lending financing scheme through local financial institutions to support customers interested in embracing clean energy solutions. Olusi expressed the bank’s commitment to seeking funding partners to further advance its climate change agenda.
Climate change, with its profound impact on various facets of life, has spurred global recognition of the potential for climate change mitigation and adaptation to drive economic growth. Development finance institutions (DFIs) are identified as pivotal in catalyzing this transformative process. In his welcome address, Olusi underscored the significant effects of climate change, citing its toll on lives, disruption of food systems, infrastructure limitations, and the overall deceleration of economic growth. He stressed the urgency for DFIs to play a central role in the global response to the climate challenge.
“As Nigeria’s leading DFI, one of the primary drivers of BoI’s developmental strategy is to accelerate Nigeria’s development through supporting environmentally friendly and sustainable projects across the key sectors of the economy,” remarked Olusi. He revealed that BoI’s project portfolio reflects a substantial investment in renewable energy projects, aligning with the continental ambition of achieving 27% renewable power generation by 2030.
Providing insights into the financial achievements of the past five years, Olusi stated, “BOI has worked with our partners to raise over $5 billion from several international financial institutions. We intend to leverage our extensive partnership to raise the resources required for building a climate-smart Nigeria, in line with our President’s vision.” This financial mobilization reflects BoI’s commitment to tapping into international collaboration to fund initiatives that contribute to environmental sustainability and national development.
The AADFI-ADFIAP Joint CEO Forum, where Olusi made these announcements, serves as a crucial platform for collaboration and knowledge exchange among development finance institutions. AADFI, standing for the Association of African Development Finance Institutions, and AADFIAP, the Association of Development Financing Institutions in Asia & the Pacific, collectively bring together institutions from 33 countries across four continents. This diverse assembly provides an opportunity for cross-continental dialogue on addressing economic challenges, particularly in the context of sustainable development and climate action.
In conclusion, the proactive initiatives outlined by Dr. Olasupo Olusi demonstrate BoI’s commitment to driving sustainable development in Nigeria through the promotion of clean energy solutions. As the nation’s leading DFI, BoI recognizes the pivotal role it plays in responding to the global climate challenge and contributing to the ambitious targets set for renewable power generation. The on-lending financing scheme and strategic partnerships underscore BoI’s dedication to leveraging financial resources for environmentally friendly projects, fostering economic growth, and building a climate-smart Nigeria in alignment with national objectives. The announcements made at the AADFI-ADFIAP Joint CEO Forum signal a collaborative and forward-looking approach to addressing the challenges posed by climate change and advancing sustainable development on a global scale.
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