World Bank Group’s private-sector investment arm, the International Finance Corporation (IFC), has proposed an investment package of up to $100 million for Nigeria’s Bank of Industry (BOI), aimed at expanding access to long-term financing for micro, small, and medium-sized enterprises (MSMEs), including women-owned businesses.

Disclosed on November 3, 2026, the proposed financing comprises a senior loan of up to $50 million and an anchor investment of up to $50 million equivalent in BOI’s domestic bond issuance.

IFC earmarks funding for women-owned businesses and MSMEs

Under the proposed arrangement, the senior loan with a tenor of up to seven years, and at least 25% of proceeds allocated to women-owned or women-led MSMEs is expected to strengthen the development finance institution’s lending capacity while attracting additional private capital into Nigeria’s bond market.

The financing will help Bank of Industry diversify its funding sources and secure longer-tenor capital to support lending across underserved business segments and priority sectors alongside a further 10% of proceeds from BOI’s domestic bond issuance will be earmarked for MSMEs, broadening access to financing for businesses that often face constraints in securing long-term capital.

The IFC’s participation as an anchor investor is expected to encourage pension funds, asset managers, and other private investors to participate in the bond issuance. The institution estimates that its involvement could mobilize up to $383 million in additional private investment.

IFC plans advisory support to strengthen BOI operations

Beyond the proposed financing, the IFC is exploring advisory support for BOI in women-owned MSME banking, governance, environmental and social risk management, and sustainability reporting.

The proposed engagement is intended to strengthen the bank’s capacity to finance underserved businesses and priority sectors, while improving its ability to manage environmental and social risks and expand sustainability-related activities.

The IFC also expects its medium- to long-term financing, with a tenor of five to seven years, to address the shortage of longer-term funding in Nigeria’s financial market. Such financing could help reduce maturity mismatches at BOI and enable it to provide longer-term loans to businesses.

Government-owned BOI targets industrial and economic growth

Established in its current form in 2001, Bank of Industry is Nigeria’s oldest and largest development finance institution, with a mandate to support industrialization, economic diversification, and the growth of MSMEs.

The institution is 99.99% indirectly owned by the Federal Government of Nigeria through the Ministry of Finance Incorporated and the Central Bank of Nigeria. Its financing activities span manufacturing, agribusiness, creative industries, healthcare, and other strategic sectors.

Headquartered in Lagos, BOI operates a nationwide network covering 33 states, providing long-term financing, guarantees, and advisory services to businesses.

The proposed investment is expected to deliver broader development benefits by strengthening financial intermediation and supporting the growth of Nigeria’s domestic capital market.

Through its anchor participation in Bank of Industry’s bond issuance, the IFC aims to attract institutional investors and increase the availability of longer-tenor financing. Its advisory support will also focus on climate finance, women-focused MSME lending, and environmental and social risk management systems.