BOI and AFD Join Forces To Fight Climate Change In Nigeria

The transaction was approved by AFD and forms a part of the Transforming Financial Systems for Climate (TFSC) Program, in partnership with the Green Climate Fund (GCF). The TFSC is a program worth USD650mn, active in 17 countries. It works towards the goal of 100% climate investment projects, and the credit facility will focus on financing investments that contribute to climate change mitigation and adaptation, specifically projects focused on renewable energy, low carbon and efficient energy generation, climate-smart agriculture technologies, clean urban transportation and others.

“This is the beginning of a long-term mutually beneficial relationship and a significant step for BOI as we scale up our green-lending capacity. Given the serious threat that climate change poses to equitable and sustainable development in Nigeria, it is critical for us at BOI to take the lead in mobilizing capital for green and sustainable investment” said Olukayode Pitan, Managing Director/Chief Executive Officer, Bank of Industry, at the credit agreement signing ceremony, which took place at the BOI head office in Lagos on August 23rd.

Xavier Muron, AFD's country director in Nigeria, highlighted the huge significance of the project in the context of the global fight against climate change. He added that this new credit line is key to achieving the goals set out in the Paris Agreement, and is particularly timely since Nigeriawill soon be launching its Energy Transition Plan. 

The financing package will also include a €2.5mn grant facility, dedicated to a technical assistance programs that ensure climate finance objectives are in line with BOI’s strategy and operations. It will support capacity building for BOI and its customers, thereby providing tools for the effective identification and development of eligible bankable climate-related projects as well as improving the readiness of the bank’s customers to implement green practices in their operations. 

This transaction highlights both AFD’s and BOI’s longstanding commitment to achieving the United Nations’ Sustainable Development Goals. Thus, BOI operates under a robust Environment and Social Governance (ESG) framework that has been integrated into its operations. For the successful implementation of the project, BOI draws on a global network of partners, ensuring that it remains at the forefront of sustainable development.

Olukayode Pitan acknowledged the dedication of AFD, the GCF and its strategic partners to ensure the consummation of this deal: “This is the first time we have worked with AFD, and we were impressed by how the AFD invested significant time and effort to structure the facility to our specific requirements and operating model. This is a strong foundation for a long-term partnership.”

Press contact :

Kadidiatou Toure Glin - Head of communication AFD