The Bank of Industry (BOI) has announced a 2026 financing strategy that will channel 80 per cent of its lending to large enterprises into priority sectors, as the development finance institution intensifies efforts to support Nigeria’s industrial recovery.

The strategy identifies power, manufacturing, agribusiness, pharmaceuticals and digital infrastructure among the key areas that will receive increased attention under the bank’s 2026 lending programme.

BOI outlined the strategy in its 2025 Annual Development Impact Report, describing 2026 as a “strategic inflection point” in its 2025–2027 transformation agenda.

According to the bank, the financing plan is designed to respond to major challenges affecting businesses and the broader economy, including high inflation, foreign exchange shortages, rising energy costs, inadequate infrastructure and low industrial productivity.

Under the new allocation framework, 35 per cent of BOI’s total funding will be directed to micro, small and medium enterprises, while 80 per cent of financing for large enterprises will be committed to priority sectors.

The bank will further allocate 30 per cent of large-enterprise financing to infrastructure projects and reserve 15 per cent of its financing for women-owned businesses. Young entrepreneurs will account for 20 per cent of MSME financing, while green projects will receive 10 per cent of funding and digital and information technology initiatives will receive 15 per cent.

The report said the strategy represents a shift from broad-based lending towards more targeted capital deployment in sectors viewed as critical to Nigeria’s economic transformation.

“BOI’s ambition is to double its asset base by 2027 while delivering industrialisation, job creation and economic resilience,” the report stated.

BOI identified power and electricity, transport and logistics, manufacturing, agribusiness, pharmaceuticals and digital technology as transformational sectors with the potential to raise productivity and reduce Nigeria’s reliance on imports.

The bank said it intends to finance projects spanning power generation, transmission and distribution, alongside industrial parks and logistics corridors. It will also deploy guarantees and blended finance mechanisms to help reduce the risks associated with private-sector investment in critical infrastructure.

BOI expects greater investment in these areas to help businesses address some of their most pressing operating difficulties, particularly high energy costs, inefficient transportation systems and dependence on imported inputs.

Manufacturing and agribusiness will also be major areas of focus under the 2026 financing strategy.

The bank said financing for food processing, manufacturing, pharmaceuticals and other productive sectors could support the expansion of export-oriented industries while reducing demand for foreign exchange required to purchase imported goods and industrial inputs.

It said stronger domestic production could improve economic resilience by reducing import dependence and creating additional opportunities for businesses to participate in both local and international value chains.

The strategy comes amid persistent financing challenges confronting Nigerian businesses, including high interest rates, collateral requirements, energy costs, infrastructure deficits and currency instability.

BOI noted that these constraints continue to limit investment and make it difficult for many businesses to move beyond survival-level operations.

MSMEs will remain a central component of the bank’s financing programme, with 35 per cent of total funding earmarked for the sector.

To improve access to capital for smaller businesses, BOI said it plans to deploy digital lending platforms and establish partnerships with commercial and microfinance banks.

Through these initiatives, MSMEs are expected to gain access to working capital with lower collateral requirements, sector-specific credit products and faster loan approval processes.

The bank said the approach is intended to tackle some of the key barriers that prevent small businesses from accessing formal financing.

Young entrepreneurs will receive 20 per cent of MSME financing, creating additional opportunities for youth-led businesses seeking capital to launch, expand or scale their operations.

Women-owned businesses will receive 15 per cent of the bank’s financing allocation, while green projects will account for 10 per cent of funding.

Digital transformation will also feature prominently in BOI’s 2026 plans, with the bank positioning the year as a major period for strengthening its internal digital infrastructure.

According to the report, BOI will introduce centralised data systems, automated loan tracking, digital dashboards and end-to-end online lending processes.

The bank expects the digital infrastructure to improve the speed and efficiency of loan processing while enabling more effective monitoring of the impact of its financing activities.

BOI described 2026 as its “digital take-off year”, stressing that a stronger digital backbone would be necessary to support the scale of financing planned under the transformation agenda.

The bank’s broader objective is to double its asset base by 2027 while contributing to industrialisation, job creation and economic resilience.

The effectiveness of the strategy will depend on how the planned financing translates into productive investment, stronger businesses and measurable economic outcomes.

With Nigerian businesses continuing to face high operating costs, infrastructure constraints and difficulties accessing finance, BOI’s 2026 strategy is positioned to support efforts to strengthen domestic production, reduce import dependence and create more sustainable growth opportunities.

For MSMEs and larger businesses, the key issue will be whether the increased emphasis on priority sectors leads to greater access to affordable capital and tangible improvements in productivity and business growth.

Source: Bank of Industry (BOI), 2025 Annual Development Impact Report.