BOI IFC Sign $50m Deal To Bring Long-Term Funding To Nigeria's Small Businesses

For many small business owners in Nigeria, the biggest problem is not finding customers. It is finding money that gives them enough time to grow.

That is why the new BOI IFC loan is getting attention. The Bank of Industry (BOI) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed a $50 million senior loan to expand long-term financing for micro, small and medium-sized enterprises across Nigeria.

## What the deal is for

In simple terms, this is not a grant to individual traders. It is money given to BOI so that BOI can lend to businesses over a longer period.

The loan has a seven-year tenor, which means BOI will have more stable funding to give out. It forms part of a broader IFC investment package of up to $100 million in support of BOI. At least 25 percent of the loan proceeds will be dedicated to women-owned businesses.

The deal was signed at the Africa Financial Industry Summit 2026 by the Managing Director/Chief Executive Officer of BOI, Dr. Olasupo Olusi, and the Managing Director of IFC, Makhtar Diop.

## Why small businesses need long-term funding

Most Nigeria MSME funding available today is short-term and expensive. A shop owner, baker, or small manufacturer may get a loan that must be repaid in a few months, even if the machine or shop they bought will take years to pay for itself. That is the core problem with small business finance in Nigeria. Without long-term funding, owners cannot: - Buy equipment and pay back gradually - Expand a factory or farm without pressure - Employ more staff and plan ahead Long-term loans give businesses breathing space. The money from this deal is expected to support productive businesses in manufacturing, agriculture, renewable energy, and the Nigerian creative industries — sectors that can create jobs for young people.

## What owners will want to see next

The signing is only the first step. BOI has said both parties will still complete the definitive financing documentation and fulfil the conditions required for implementation.

Business owners will now want to see three things clearly:

- When the money will be available through BOI - Who can apply and what the requirements are - How the 25 percent for women-owned businesses will be accessed in practice

If the funds reach the right businesses at fair terms, the $50 million deal could be more than a headline. It could give thousands of small firms the patient capital they have been asking for.

https://punchng.com/boi-ifc-sign-50m-loan-deal-to-boost-msme-financing/