BOI targets 80% loans for power, manufacturing sectors

The Bank of Industry (BOI) has announced that 80% of its lending to large enterprises will be directed towards key sectors such as power, manufacturing, agribusiness, pharmaceuticals, and digital infrastructure. This move is part of the bank's 2026 strategy to address Nigeria's economic challenges, including inflation, foreign exchange shortages, high energy costs, and weak industrial productivity.

In its 2025 Annual Development Impact Report, BOI highlighted 2026 as a "strategic inflection point" in its three-year transformation agenda.

The bank plans to allocate 35% of its total funding to micro, small, and medium enterprises (MSMEs), 80% of its funding to large enterprises to priority sectors, 30% of large enterprise financing to infrastructure projects, 15% to women-owned businesses, 20% of MSME financing to young entrepreneurs, 10% to green projects, and 15% to digital and information technology initiatives.

By 2026, the bank aims to double its asset base by deploying capital at scale into priority sectors and correcting structural bottlenecks that limit Nigeria's productivity. The sectors identified for transformation include power and electricity, transport and logistics, manufacturing, agribusiness, pharmaceuticals, and digital technology.

These sectors are crucial in unlocking productivity, reducing Nigeria's dependence on imports, and addressing the macro challenges such as high interest rates, energy and transport infrastructure gaps, and currency instability.

BOI's strategy also focuses on providing easier access to funding for MSMEs through digital lending platforms and partnerships with commercial and microfinance banks. This approach aims to address the challenges MSMEs face, such as high interest rates, collateral barriers, and limited access to finance. By strengthening its internal systems through a major digital transformation program, BOI seeks to improve efficiency and monitor the impact of its interventions.

The bank believes that its 2026 strategy will help Nigeria build a stronger manufacturing base, reduce import dependence, and create more resilient growth drivers.