Olusi: Nigeria Must Mobilise Domestic Funds for Development, Reduce Reliance on Foreign Capital

Nigeria needs to urgently shift its focus from heavy dependence on foreign development finance to mobilizing domestic capital on a much larger scale to drive its economic transformation. Olasupo Olusi, Managing Director/Chief Executive of the Bank of Industry (BoI), emphasized this necessity, stating that the era of relying heavily on long-term international development financing is fading.

Speaking at the Association of Nigerian Development Finance Institutions (ANDFI) conference in Abuja, Olusi highlighted the imperative for Nigeria to build a robust domestic financing architecture. This structure is essential to support critical sectors such as infrastructure, industrialization, agriculture, housing, manufacturing, and micro, small, and medium enterprises (MSMEs), aligning with the nation's long-term development strategy.

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As access to long-term global development capital becomes increasingly constrained, mobilising domestic resources is no longer simply desirable. It is essential.

Olusi, who also chairs ANDFI, noted that mobilizing local resources is no longer just desirable but essential, especially as access to global development capital becomes increasingly constrained. He stressed that domestic capital must now take greater responsibility in financing strategic sectors vital for Nigeria's future competitiveness.

Development finance institutions (DFIs) are identified as increasingly important players. They occupy a strategic position between government policy and private sector investment, tasked not only with providing financing but also with mobilizing capital, improving access to finance, strengthening businesses, and catalyzing inclusive economic growth. Olusi stated, “Development finance institutions occupy a unique position at the intersection of public policy and private enterprise. Our responsibility goes beyond lending. We must mobilise capital, expand access to finance, support businesses and catalyse sustainable economic development.”

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Development finance institutions occupy a unique position at the intersection of public policy and private enterprise. Our responsibility goes beyond lending. We must mobilise capital, expand access to finance, support businesses and catalyse sustainable economic development.