BOI secures €100m from AFD to expand green finance in Nigeria

Business a.m

The Bank of Industry (BOI) has secured a €100 million credit line from the French Development Agency (AFD) to support the expansion of green finance in Nigeria.

Olasupo Olusi,the managing director and chief executive officer of the development financial institution, made the disclosure during a joint CEO forum of the Association of African Development Finance Institutions (AADF) and the Association of Development Financing Institutions in Asia and the Pacific (ADFAP) in Abuja.

Olusi noted that as the leading Development Finance Institution (DFI) in Nigeria, the Bank of Industry’s primary strategy is to accelerate the country’s development by supporting environmentally friendly and sustainable projects across key economic sectors.

The forum, themed “DFIs’ Strategic Role Towards a Climate Smart Future”, drew participants from around the globe. Doris Uzoka-Anite, the minister of industry, trade, and investment,called on DFIs to mobilise and invest in climate infrastructure to meet the unique needs of each country.

The minister reiterated the government’s commitment to work with stakeholders to encourage foreign direct investment in Nigeria in line with the president’s economic growth agenda.

Uzoka-Anite’s remarks highlighted the importance of following through on decisions made at the forum, which could lead to prosperity and a climate-friendly environment in Africa.

Thabo Thamane, the chairman of AADFI and CEO of Citizen Entrepreneurial Development Agency (CEDA) Botswana, highlighted the negative impact of climate change on human health, safety, food and water security, and sustainable socioeconomic development. He emphasized the need for collaborative efforts to address these issues.

Thamane warned that, if strategic actions aren’t taken to combat climate change, the world economy could lose more than 10% of its current GDP by 2048. He said developing countries, especially those in Africa, Asia-Pacific, and Latin America, would suffer the worst consequences.

Thamane noted that Africa is projected to lose 5 per cent to 15 per cent of its projected GDP by 2050, with an estimated climate adaptation cost of $10 billion to $30 billion annually by 2030. He also warned that ASEAN countries could lose 26.5 per cent and 37.4per cent of their GDPs by 2048 if no action is taken to mitigate climate change.