A $50 million Loan Portfolio Guarantee framework was agreed by Nigeria’s Bank of Industry (BOI) and the African Guarantee Fund (AGF) in an effort to offer financial and business support services to Nigerian businesses.

The African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) program supports the deal that was inked during the Africa Investment Forum in Rabat.

The deal will greatly increase BOI’s lending to Micro, Small, and Medium-Sized Enterprises (MSMEs) in Nigeria and will be rolled out in three tranches over a ten-year period.

In order to support MSMEs, women-owned firms, and green entrepreneurs in advancing gender equity and environmental sustainability, the alliance incorporates a thorough risk-sharing system.

Jules Ngankam, the group chief executive officer of AGF, stated during the signing ceremony that the agreement with the Development Finance Institution (DFI) is a significant milestone that will have a substantial impact on Nigeria’s economy by enabling up to $100 million in financing for SMEs. Additionally, AGF is anticipated to offer customized guarantees and technical assistance for the unique SME products offered by BOI, which target women, youth, and green businesses.

“BOI is excited to leverage the guarantee framework of the African Guarantee Fund in promoting sustainable growth, gender equity, and innovation and advancing more credit to SMEs in Nigeria in line with President Bola Tinubu’s government’s agenda,” stated Dr. Olasupo Olusi, MD/CEO of the Bank of Industry (BoI).

Similarly, Dr. Beth Dunford, vice president for Agriculture, Human, and Social Development, stated that this strategic partnership demonstrates the African Development Bank’s dedication to empowering women entrepreneurs and promoting economic growth in Nigeria, particularly through the Affirmative Finance Action for Women in Africa (AFAWA) initiative.

According to Dunford, it is more than just a financial deal meant to help and spur the expansion of small and medium-sized businesses in Nigeria; it is a ray of hope and advancement for African companies, especially those run and controlled by women.

This deal marks the beginning of a long-term strategic partnership and offers the ideal convergence of the BOI’s mandate to spur Nigeria’s industrialization and economic development with the AGF’s goal of facilitating financing for SMEs.

The goal of the African Guarantee Fund, a specialized guarantee provider, is to support poverty alleviation and economic growth in Africa. Through a variety of guarantee products and capacity building, AGF expands Small and Medium-Sized Enterprises’ (SMEs’) access to financing across important economic sectors.

The oldest, biggest, and most prosperous development financing organization (DFI) in Nigeria is the Bank of Industry Limited (BOI).Under the direction of the World Bank, it was reorganized in 1964 as the Nigerian Industrial Development Bank (NIDB) after being formed in 1959 as the Investment Company of Nigeria (ICON) Limited.

An African Development Bank program called Affirmative Finance Action for Women in Africa (AFAWA) is helping to close the $49 billion gap in women’s access to financing in Africa.