The Bank of Industry has unveiled a financing strategy that will see 80 per cent of its lending to large enterprises channelled into priority sectors, including power, manufacturing, agribusiness, pharmaceuticals and digital infrastructure, marking a sharp shift in its deployment priorities.
The development finance institution said the move forms part of its 2026 strategy aimed at addressing some of the country's biggest economic challenges, including soaring inflation, persistent foreign exchange shortages, high energy costs and weak industrial productivity. According to the report, 35 per cent of its total funding will be channelled to micro, small and medium enterprises, while 80 per cent of financing to large enterprises will be directed to priority sectors.
The bank disclosed the plans in its 2025 Annual Development Impact Report, analysed by our correspondent, describing 2026 as a "strategic inflection point" in its three-year transformation agenda. The Bank of Industry (BOI) has announced a record total fund disbursement of N636 billion to businesses across Nigeria in 2025, setting the stage for this year's targeted push.
The key facts
80% of BOI large enterprise loans will target power, manufacturing, agribusiness, pharmaceuticals and digital infrastructure; 35% of total funding reserved for MSMEs
BOI disbursed a record N636 billion to over 7,000 businesses in 2025
30% of large enterprise financing will go to infrastructure projects, 15% to women-owned businesses, 10% to green projects
Manufacturing sector slipped into contraction in April 2026, with performance index falling to 98.7 points from 103.4 in March
35% of manufacturers' production costs now go to energy, according to the Manufacturers Association of Nigeria
Why it matters
The pivot comes as Nigeria's manufacturing sector battles a perfect storm. Foreign investment in manufacturing fell 50.7% quarter-on-quarter to $152.27 million in Q1 2026, down from $308.93 million in Q4 2025, while manufacturers report irregular electricity supply and energy costs consuming 35% of production budgets. The timing is particularly sensitive: Geregu Power (GEREGU), Nigeria's largest listed genco, recently defaulted on its corporate bond—a stark reminder of power-sector fragility. For investors watching Dangote Cement (DANGCEM), BUA Cement (BUACEMENT) or Flour Mills (FLOURMILL), BOI's shift signals where government-backed capital will flow, but execution risk remains high given the structural challenges choking both sectors.
What to look out for
With commercial banks now recapitalised—minimum paid-in capital raised to N500bn for international banks and N200bn for national lenders—expanded equity enables banks to absorb credit risks more effectively, facilitating targeted credit flows into manufacturing and agriculture. Watch whether BOI's industrial push catalyses wider private-sector lending or whether power and FX constraints continue to deter follow-on investment.
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