Nigeria's Bank of Industry targets 80% of loans for power, manufacturing sectors

The Bank of Industry (BOI) has outlined a strategic financing plan to channel 80% of its lending to large enterprises into critical sectors such as power, manufacturing, agribusiness, pharmaceuticals, and digital infrastructure. This move is central to the bank's 2026 strategy, designed to tackle Nigeria's pressing economic issues, including high inflation, persistent foreign exchange scarcity, escalating energy costs, and sluggish industrial output.

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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.

The bank's 2025 Annual Development Impact Report details this strategy, positioning 2026 as a pivotal year for its three-year transformation agenda. The report indicates that 35% of the total funding will support micro, small, and medium enterprises (MSMEs). For large enterprises, 80% of financing will target priority sectors, with a specific allocation of 30% dedicated to infrastructure projects. Further breakdowns include 15% for women-owned businesses, 20% of MSME financing for young entrepreneurs, 10% for green projects, and 15% for digital and information technology initiatives.

According to the report, 2026 is the year when "strategic intent must translate into tangible sectoral impact, particularly in energy-dependent, FX-exposed and import-substitution sectors that dominate Nigeria’s real economy." The BOI's overarching ambition is to double its asset base by 2027, fostering industrialization, generating employment, and building economic resilience. By 2026, the bank aims to be significantly advanced in this growth trajectory, deploying substantial capital into these priority areas and addressing structural impediments to Nigeria's productivity.

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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.

Amidst challenging economic conditions, including high borrowing costs, volatile exchange rates, and rising energy expenses, the BOI's interventions in 2026 will concentrate on sectors directly influencing inflation, economic growth, and job creation. The identified transformational sectors are power and electricity, transport and logistics, manufacturing, agribusiness, pharmaceuticals, and digital technology. These sectors are deemed crucial for boosting productivity and reducing Nigeria's reliance on imports. The bank emphasizes that by 2026, Nigeria's industrial base will begin receiving "purpose-built capital instead of generic loans."

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