The Bank of Industry (BOI) has entered into a partnership with FSD Africa to strengthen sustainable green financing efforts in Nigeria. The partnership aims to enhance BOI’s capacity in Climate Finance through technical assistance, strategic guidance, and capacity development. At the signing ceremony in Lagos, BOI’s Managing Director, Dr. Olasupo Olusi, highlighted the importance of integrating Climate Resilience and Sustainability into the bank’s operations. He stated that the collaboration would strengthen BOI’s ability to provide tailored financial solutions for climate-focused enterprises, positioning it as a key driver of green Finance in Nigeria.
Olusi noted that the agreement aligns with BOI’s newly launched three-year plan, which prioritises climate and green finance. He explained that the bank’s efforts will focus on promoting adaptation finance, supporting decarbonisation, and fostering sustainable economic growth. By leveraging FSD Africa’s expertise, BOI aims to deepen its impact in Nigeria’s green finance space, helping enterprises integrate sustainability into their operations. This expansion of climate finance is very crucial to achieving long-term economic resilience and environmental stability.
Funding remains a major hurdle for climate projects.
Securing adequate financing remains a critical challenge for Nigeria’s climate ambitions. Dr. Evans Osano, the organisation’s Chief Financial Markets Officer, stated that Nigeria’s yearly climate finance gap is estimated at $27.2 billion. This highlights the urgent need for stronger financial mechanisms to bridge the shortfall and accelerate the implementation of decarbonisation initiatives. Expanding access to climate finance could enable businesses and policymakers to scale sustainability projects more effectively. Without sustained efforts to close this gap, key climate goals such as Emissions reduction and climate resilience could remain out of reach.
Nigeria’s climate financing gap reflects a broader challenge faced by developing economies in mobilising funds for sustainability. Despite growing awareness of climate risks, financial institutions often struggle to provide adequate funding for green initiatives. Limited access to affordable financing has hindered businesses and policymakers from fully implementing climate adaptation measures. Addressing this challenge requires a combination of domestic resource mobilisation, foreign investment, and innovative financial instruments to attract sustainable funding. Strengthening financial Infrastructure and reducing bureaucratic barriers could also enhance the efficiency of climate finance deployment.
Stronger policies can attract More green Investments.
Beyond large-scale funding needs, mobilising climate finance also requires stronger engagement with local businesses and communities. Many small and medium-sized enterprises (SMEs) in Nigeria are working on innovative sustainability solutions but struggle to access funding. Expanding financial inclusion, offering capacity-building programmes, and creating targeted green Investment funds could empower these businesses to drive grassroots climate action. Ensuring that climate finance reaches not just large-scale projects but also smaller initiatives will be key to fostering widespread and lasting environmental impact.
Furthermore, securing climate finance goes beyond funding alone; regulatory and policy frameworks must also evolve to support sustainability efforts. A more structured approach to green investment, including Tax incentives and risk-sharing mechanisms, could encourage greater Private Sector participation. Additionally, enhanced public-private partnerships could drive large-scale investment in renewable energy, sustainable agriculture, and climate-resilient infrastructure. Strengthening institutional frameworks will be essential in ensuring that climate finance is effectively deployed to achieve tangible results.
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Overall, BOI’s collaboration with FSD Africa presents a good opportunity to reshape Nigeria’s sustainability financing landscape. By leveraging international expertise and expanding access to climate funds, the partnership could unlock new investment opportunities for businesses. However, sustained efforts will be needed to address systemic barriers such as bureaucratic bottlenecks and the high cost of capital. Ensuring transparency in fund allocation and project implementation will also be critical to maximising the impact of climate financing initiatives.