World Bank, BoI Roll Out New Financing Framework

In a strong affirmation of Nigeria’s reform trajectory and renewed investor confidence, the World Bank and the Bank of Industry (BoI) have outlined a bold new framework for development finance aimed at accelerating job creation, unlocking private capital, and deepening financial inclusion across the country.

Speaking at the second edition of the Bank of Industry Development Lecture Series in Abuja, the World Bank Country Director for Nigeria, Dr. Matthew Verghis, and BoI Board Chairman, Dr. Mansur Muhtar, emphasized the urgency of rethinking Nigeria’s development finance architecture to meet evolving global and domestic realities.

The event, themed: “Development Finance Imperatives: Rethinking Nigeria’s Path Forward,” drew key stakeholders including Dr. Abdul Kamara, Director-General, African Development Bank Nigeria Office; Mr. Ayo Sotinrin, Managing Director, Bank of Agriculture; Dr. Sarah Alade, former Deputy Governor, Central Bank of Nigeria; Dr. Olasupo Olusi, Managing Director, BoI; Mrs. Ibukun Awosika, First Female Chairman of First Bank Plc; and Mr. Abba Bello, Managing Director, Nigeria Export-Import Bank (NEXIM).

Dr. Verghis said Nigeria stands at a critical turning point, with emerging signs of macroeconomic stability reflecting the government’s ongoing reform efforts.

He cited easing inflation, rising foreign reserves, and renewed industrial confidence as evidence that fiscal discipline and policy consistency were beginning to yield tangible results.

Verghis also hailed Nigeria’s removal from the Financial Action Task Force (FATF) grey list as a landmark achievement, describing it as a strong signal of credibility in the nation’s financial system.

“It is a signal that Nigeria’s anti-money laundering structures now meet international benchmarks.That single step enhances investor trust and strengthens the foundation for sustainable economic growth,” he said.

However, Verghis cautioned that poverty and unemployment remain persistent challenges, with millions of citizens yet to feel the impact of ongoing reforms.

“We are seeing progress in stabilisation, but the purchasing power of citizens remains weak because inflation is still high.To sustain these reforms, we must focus on policies that drive job creation and increase access to finance,” he noted.

According to him, Nigeria needs a new model of development finance that mobilizes private capital and leverages digital innovation to address funding gaps in infrastructure and enterprise development.

“Following conventional financing approaches will not take us close to our infrastructure or enterprise goals. We need a shift—one that treats development finance not as an end in itself, but as a tool for structural transformation,” Verghis said.

The World Bank chief disclosed that the institution is backing new mechanisms to deepen access to finance and attract private investment, including the Fostering Inclusive Finance for MSMEs (FIRM) Project—a $500 million initiative expected to crowd in at least four times that amount in private funding.

The project targets Nigeria’s $120 billion MSME financing gap through innovative tools such as subordinated debt, MSME investment funds, and partial credit guarantees.

“We are very excited about the FIRM project,” Verghis said. “It will expand MSME access to long-term capital and provide the financial infrastructure needed for growth.”

He added that Nigeria’s thriving fintech ecosystem provides a strong foundation for inclusive growth.

“Some of Africa’s most creative fintechs are based here in Nigeria. By leveraging technology, we can make credit cheaper, faster, and more inclusive, especially for underserved segments of the economy,” he said.

Verghis also cited InfraCredit and the proposed Nigeria Infrastructure Finance and Guarantees Platform as innovative tools for developing a “bankable pipeline” of infrastructure projects.

BoI chairman Dr. Mansur Muhtar, called for deeper collaboration between public institutions, private investors, and development partners to foster inclusive and sustainable growth.

“At the Bank of Industry, we believe that inclusive and sustainable investment-led growth is not just a goal, it is a necessity. Our mission is to drive industrial transformation by supporting enterprises, deepening sectoral linkages, and embracing technology to unlock new opportunities,” Muhtar said.

He described the BoI Development Lecture Series as a platform for shaping Nigeria’s development finance agenda, providing space for policymakers, investors, academics, and civil society to exchange ideas on building stronger financial systems.

“This platform is about rethinking how we fund and drive Nigeria’s development.The challenges of today—from digital disruption and global economic uncertainty to climate change—demand that we innovate in how we finance progress and build stronger institutions,” he said.

Muhtar stressed that Nigerian financial institutions must evolve beyond traditional lending to become development catalysts offering both financial and non-financial support to enterprises.

“Development finance is not only about disbursing loans. It is about enabling businesses to scale, build capacity, and become globally competitive. It is about supporting the real economy—the farmers, manufacturers, innovators, and creators who make up the backbone of our society,” he added.

He lauded the growing collaboration among the BoI, World Bank, and other development finance institutions as “a model of partnership that aligns knowledge, finance, and policy for shared prosperity.”

BoI managing director Dr. Olasupo Olusi, said the event underscores the Bank’s evolving role as a strategic partner in shaping Nigeria’s development narrative.

He explained that the lecture series, which began last year with the theme: “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria,” has become a thought-leadership forum for generating ideas to strengthen Nigeria’s development ecosystem.

“The Bank of Industry is not just a financial institution. We are a partner in shaping Nigeria’s development journey. The global economy is shifting rapidly—from climate pressures to digital disruption and evolving trade patterns. Nigeria cannot afford to stand still,” Olusi said.

He stressed that development finance must move beyond project-based lending to become an enabler of structural transformation, capable of unlocking private capital and translating economic growth into real improvements in citizens’ lives.

Olusi said the BoI’s focus aligns with President Bola Tinubu’s Renewed Hope Agenda, which envisions a resilient, sustainable, and inclusive economy.

“President Tinubu has consistently emphasised building a resilient, sustainable, and inclusive economy—one that creates wealth and empowers citizens. Development finance is central to this vision. It must not only fund projects but drive transformation and inclusion,” he added.

Panelists at the event agreed that Nigeria’s long-term growth depends on sustained reform implementation, investor confidence, and policy stability, and called for a public-sector-facilitated, private-sector-led model to drive economic transformation.