NIGERIA: AFD opens a €100 million credit line for BOI’s climate

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NIGERIA : l’AFD ouvre une ligne de crédit de 100 M€ pour la finance climatique de la BOI©AFD

In Nigeria, the French Development Agency (AFD) has signed a partnership with the Bank of Industry (BOI). Under this agreement, the French financial institution will provide the Nigerian development bank with a €100 million line of credit to support its green finance.

The French Development Agency (AFD) wants to contribute to the adaptation and resilience to climate change in Nigeria. The Paris-based financial institution has signed a partnership with the Bank of Industry (BOI), the largest development finance institution currently operating in Nigeria, with over €4 billion in assets by 2021.

AFD is making available a 100 million euro line of credit under the Transforming Financial Systems for Climate (TFSC) program. This $650 million program is being implemented in 17 countries to support 100% climate investment projects in the framework of a partnership between AFD and the Green Climate Fund (GCF).

Building green finance skills

In Nigeria, AFD believes that its collaboration with BOI will contribute to climate change mitigation and adaptation, notably through projects focusing on renewable and low-carbon energy, energy efficiency, smart agricultural technologies, clean urban transport, etc. In order to support BOI in financing these sustainable development projects, AFD also plans to provide a 2.5 million euro grant for a technical assistance program to mainstream green finance into BOI’s strategy and operations.

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This programme will build capacity for BOI and its clients through the provision of tools for the identification and development of bankable climate projects and support for the bank’s clients’ readiness to implement “green” practices.

“This is the beginning of a mutually beneficial long-term relationship and an important step for BOI as we increase our climate lending capabilities. 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 mobilising capital for green and sustainable investments,” said Olukayode Pitan, BOI’s managing director, at the signing ceremony of the agreement on 23 August 2022 in Lagos.

Jean Marie Takouleu

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