Nigeria: BoI Secures €100m for Climate-Friendly Investments

The Managing Director/Chief Executive, Bank of Industry (BoI), Mr. Olukayode Pitan, on Monday said the bank has accessed a €100 million (about N42.20 billion) line of credit under the Transforming Financial Systems for Climate (TFSC) programme in collaboration with the Green Climate Fund (GCF).

He said the funding would be channelled towards financing investments that contribute to mitigation and adaptation measures to climate change and promoting low-emission transition in Nigeria.

Pitan, who spoke at the second regional roundtable on ‘Creating World Class Sustainable Development Financial Institutions through Embracing Holistic Sustainability,’ also disclosed that the BoI had also accessed the $600 million Global Environment Fund (GEF)/ Resource Efficiency and Cleaner Production (RECP) credit guarantee scheme that would support the development finance institution in financing the procurement of plant and machinery for projects to promote industrial energy efficiency.

He said since the Sustainable Development Goals (SDGs) were launched, there had been concerted efforts globally, to ensure that sustainability is advertised and sold to the world, not for profit, but to ensure active and unwavering commitment from all stakeholders in the global ecosystem.

The BoI MD, further explained that one of the primary drivers of the developmental strategy at the development finance institution was to accelerate the industrialisation of the Nigerian economy by providing financial and business support services to environmentally-friendly and sustainable projects across key sectors of the economy.

He said the bank had set up a full-fledged environmental and social governance team in 2019, which manages its sustainability strategy and activities.

He recalled that in 2013, the bank set up a group that supports renewable energy projects, noting that through this structure, it went into partnership with UNIDO, funded and commissioned six mini-grid power solutions to provide solar energy to six rural communities across the six geo-political zones.

He explained that for over eight years since the projects were commissioned, the benefitting communities have been enjoying a 24-hour uninterrupted green power supply.

He said BoI had also integrated the Environmental and Social Management System (ESMS) framework into its end-to-end credit appraisal, approval, disbursement, and credit monitoring activities, adding that the bank last year commenced the registration processes toward obtaining the Sustainability Standards and Certification Initiative (SSCI) accreditation.

He said, “In our continued effort to build a sustainable institution, the bank concluded a

€1 billion syndicated loan transaction in August 2022, which brought the total funds that we have raised from the international financial markets since 2018 to about $5 billion.

“This will enable us to deepen our impact in key growth and emerging sectors of the economy, given the critical role that they play in national socio-economic development.

“The assessment of our sustainability status contributed to the success of the deal; from credit ratings to active compliance with best practices.

“Through our strategic partnership with the French Development Agency (AFD), we have also accessed a €100m line of credit under the Transforming Financial Systems for Climate (TFSC) programme of the agency, in collaboration with the Green Climate Fund (GCF).

“This fund shall be channelled towards financing investments that contribute mitigation and adaptation measures to climate change, toward promoting low-emission transition in Nigeria.

“In addition to the above, we also have access to the $600 Million Global Environment Fund (GEF)/ Resource Efficiency and Cleaner Production (RECP) credit guarantee scheme that would support us in financing the procurement of plant and machinery for projects that would promote industrial energy efficiency.”

James Emejo

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