BOI Intensifies Drive To Close N13trn MSME Funding Gap

The managing director/chief executive officer of the Bank of Industry (BOI), Dr. Olasupo Olusi, said the bank has intensified its drive to close Nigeria’s estimated N13 trillion MSME funding gap through enhanced capital mobilisation and strategic partnerships.

Olusi said the gap widened after the Central Bank of Nigeria pulled back from development financing, leaving the responsibility for industrial financing largely on the development finance institution.

According to him, to meet the growing demand, the bank’s Corporate Finance Directorate has adopted a multi-channel funding approach anchored on four pillars: Equity and Capital Management, Advisory Services, Structured and Project Finance, and Debt Capital Markets.

Under this framework, he said the bank is syndicating with financial institutions locally and internationally and collaborating with Export Credit Agencies and Original Equipment Manufacturers to fund large-ticket infrastructure projects including power and rail.

The MD disclosed that BOI has attracted strong interest from international partners willing to co-finance projects through both debt and equity, with partnerships growing across several Development Finance Institutions.

Beyond direct borrowing, Olusi said the bank is also leveraging guarantee instruments where agencies provide first-loss or second-loss cover, and risk-sharing partnerships to reduce collateral requirements for businesses, particularly MSMEs struggling with growth and succession challenges.

He added that the bank also provides advisory services to help investors with business formation and structuring the most appropriate capital for their businesses, including advisory on mergers and acquisitions.

On operational reforms to reach more businesses, the MD said the bank’s DIY portal went live on October 2, 2026, allowing businesses to apply for facilities from home and track applications in real time.

He noted that the bank has also decentralised its operations for faster turnaround and is deploying business advisory and shared services for industrial enterprises.

Olusi said from a 2024 disbursement base, the bank targets N1.25 trillion by 2027 under its 2025–2027 strategy focused on driving sustainable and inclusive industrial development.

He said the bank remains on track to finance over 40,000 MSMEs and create or support 3 million jobs by 2027, having already financed over 12,000 MSMEs and supported 1.7 million jobs in 2025 alone.