BOI’s N825 Million Green Fund Cuts Costs and Boosts Industrial Output in Nigeria
Small and large businesses across Nigeria are experiencing lower production costs and improved operational efficiency, thanks to the Bank of Industry’s (BOI) N825 million green financing initiative. The fund supports clean energy adoption and sustainable production, empowering companies to reduce expenses while boosting output.
The initiative, launched under a $600,000 Global Environment Facility–United Nations Industrial Development Organisation (GEF-UNIDO) programme, provides financing for energy-saving technologies and resource-efficient systems across key industrial sectors. Speaking at the weekend presentation of the project’s financing results in Abuja, BOI Executive Director for Risk Management and IT, Mrs. Ifeoma Uz’Okpala, highlighted the dual benefits of industrial growth and environmental sustainability.
Mrs. Uz’Okpala explained that $550,000 of the total fund was directly channeled through BOI to eligible industries. The financing has enabled businesses to adopt modern, energy-efficient equipment and cleaner production methods, including renewable energy systems, recycling infrastructure, and resource-efficient processes. Companies reported reduced energy consumption, lower operational costs, and higher productivity, alongside stronger environmental performance.
Industries benefiting from the fund include manufacturing, agro-processing, hospitality, and logistics, with small enterprises receiving grants and financing for equipment upgrades. UNIDO National Programme Officer, Dr. Reuben Bamidele, emphasized that the programme is a vital part of Nigeria’s broader industrial sustainability framework, showing the potential to scale cleaner production practices nationwide.
Mr. Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria (MAN) and chair of the project’s investment committee, noted that risk-sharing mechanisms, such as first-loss guarantees, encouraged private sector participation. He stressed that continued collaboration among government agencies, financial institutions, and development partners will be key to expanding the programme’s benefits across the country.
source: The sun