BOI, African Guarantee Fund sign $50m deal to scale up MSME financing

By Joy Baba-Yesufu

The Bank of Industry (BOI) and African Guarantee Fund (AGF) have signed a $50 million Loan Portfolio Guarantee framework that will help scale up financial and support services to women-owned businesses and Micro, Small and Medium Enterprises (MSMEs) in Nigeria.
The agreement, which was signed at the Africa Investment Forum in Rabat, is backed by African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative. The transaction will be phased out in three tranches over a 10-year period.
Olasupo Olusi, BOI managing director/CEO, said at the signing event that through AGF’s support, the bank will deepen its commitment to Nigerian enterprises and provide them with resources to scale their operations, innovate for impact and expand into new markets.
He explained that the portfolio, which guarantees up to N75 billion, will unlock unprecedented opportunities for small enterprises that represent a resilient, inclusive and sustainable economic future for Nigeria.
The partnership, according to him, aligns with the BOI’s mission to drive industrial transformation and vision to lead “Nigeria into a future defined by opportunity, equity and resilience.”
He said that over the past decade, BOI has disbursed over N1.6 trillion in loans, supported millions of MSMEs and created over nine million jobs.
On its part, AGF has, since inception, unlocked more than $5 billion in SME financing, through partnerships with 250 partner financial institutions across 44 African countries.
“This agreement with AGF amplifies our capacity to go even further,” Olusi stressed, commending the Fund for its unwavering commitment to supporting development across the continent.
“Your work in de-risking investments and enhancing financial inclusion has been instrumental in enabling transformative change, and we are honored to collaborate with you on this mission.
“The partnership includes a comprehensive risk sharing mechanism that focuses on supporting MSMEs, Women-Owned enterprises and Green businesses to promote environmental sustainability and gender equity.
“By prioritising women-owned businesses and environmentally sustainable enterprises, we are saying that women must not just participate in Nigeria’s economic story—they must lead it. We are saying that sustainable, climate-conscious practices are not optional—they are imperative,” Olusi added.
In his remarks, Jules Ngankam, AGF group chief executive officer, said, “This transaction with the leading Development Finance Institution in Nigeria is a great milestone that will significantly impact Nigeria’s economy by unlocking up to USD 100 million in financing for SMEs.
“AGF will also provide tailored guarantees and technical assistance towards the special SME products offered by BOI, targeting Women, Youth and Green Businesses.”
Both parties see the agreement as a start of a long-term strategic relationship, and provides a perfect intersection of the AGF’s mission to unlock financing for SMEs, and BOI’s mandate to catalyse Nigeria’s industrialization and economic transformation.