Credit line

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

The French Development Agency (AFD) wants to contribute to 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 providing a credit line of 100 million euros under the Transforming Financial Systems for Climate (TFSC) program. This $650 million program is implemented in 17 countries to support 100% climate investment projects as part of a partnership between AFD and the Green Climate Fund (GCF).

Develop skills in green finance

In Nigeria, AFD believes that its collaboration with the BOI will contribute to climate change mitigation and adaptation, notably through projects focusing on renewable and carbon-free energy, energy efficiency, smart agricultural technologies, clean urban transport, etc. In order to support the BOI in By financing these sustainable development projects, AFD also plans to allocate a grant of 2.5 million euros to a technical assistance program to integrate green finance into the strategy and the operation of BOI.

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This program will build the capacity of BOI and its clients by providing tools for the identification and development of bankable climate projects and by supporting the preparation of the bank’s clients to implement “green” practices.

“This is the start of a mutually beneficial long-term relationship and an important milestone for BOI as we scale up 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 raising capital for green and sustainable investments,” said Olukayode Pitan, Director General of the BOI, during the signing ceremony of the agreement on August 23, 2022 in Lagos.

Jean-Marie Takouleu