Nigeria - Domestic-oriented SME Financing Program


Project Summary

Approval Date 26 May 2011
Signature Date 29 Jan 2013
Planned Completion Date 31 Dec 2017
Last Disbursement Planned Date 31 Dec 2017
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 73,081,251.74
Status Implementation

Project General Description

The intervention is for a Domestic-oriented SME Financing Program in Nigeria. The Program supports Nigerian government efforts to modernize and diversify the country’s production base and operationalize the recently approved National Policy on MSMEs. It supplies multi-sector financing to domestic-oriented SMEs in Nigeria to spur job creation in productive sectors to support the country’s efforts to diversify its economy away from oil and gas. The funds for the Program will be channeled through Bank of Industry Limited (BOI) by way of a multi-tranche sovereign guaranteed line of credit (LoC), subject to performance milestones. An integral component of the Program will be a TA package of up to USD 2.7 million out of the proceeds of the LoC for capacity building at BOI as well as at client SMEs. This intervention would complement the FGN program to support SMEs. The TA will improve BOI’s institutional capacity and contribute to enhance SMEs’ bankability.

Project Objectives

The general objective of the Program is to further the development of the non-oil industrial sector by making more medium- and long-term finance available to domestic-oriented SMEs. The specific aim of the Program is to ensure over the coming three years an adequate flow of medium- and long-term financing via national development finance institutions (DFIs) for domestic-oriented SMEs investment outlays to restructure, improve and expand efficient operations. A related specific objective of the Program is to build capacity at Nigerian DFIs by making available resources for technical assistance (TA) to improve efficiency and effectiveness of their operations.

Beneficiaries

The direct beneficiaries of the intervention are Bank of Industry Limited (BOI), the Federal Government of Nigeria, as well as MSMEs.

Participating Organization

Funding
African Development Bank
Implementing
Bank of Industry Limited (BOI)

Information

IATI identifier 46002-P-NG-HAA-002
Last Update 31 Oct 2019

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Contact Details

Name AKINWUMI Emmanuel Ibituase
Email e.akinwumi@afdb.org

Geographic Location

Country Nigeria