$50 Million Financing Agreement Signed to Empower Nigerian Women-Led Enterprises

A groundbreaking $50 million financing agreement aimed at boosting financial and business support for women-led enterprises in Nigeria has been signed by the African Guarantee Fund (AGF) and the Bank of Industry (BOI).

The partnership, formalised at the Africa Investment Forum in Rabat, Morocco, is backed by the African Development Bank (AfDB) Group’s Affirmative Finance Action for Women in Africa (AFAWA) programme.

The initiative, set to unfold in three tranches over a decade, is designed to enhance lending to small and medium enterprises (SMEs) through BOI, Nigeria’s oldest and largest development financing institution.

The framework will specifically target women-led businesses, employing the AFAWA Guarantee for Growth programme to provide de-risking mechanisms and technical assistance.

Speaking at the signing ceremony, Dr Beth Dunford, Vice President for Agriculture, Human and Social Development at AfDB, emphasised the transformative potential of the agreement.

“This strategic partnership illustrates the commitment of the African Development Bank, especially the Affirmative Finance Action for Women in Africa initiative, to empower women entrepreneurs and foster economic growth in Nigeria,” she said.

“This is not just a financial transaction aimed at supporting and catalysing the growth of small and medium enterprises in Nigeria – it is a beacon of hope and progress for African businesses, particularly for those led and owned by women,” Dr Dunford added.

The agreement incorporates a comprehensive risk-sharing mechanism that prioritises micro, small, and medium enterprises (MSMEs), women-owned businesses, and green enterprises promoting environmental sustainability and gender equity.

Jules Ngankam, CEO of the African Guarantee Fund Group, hailed the deal as a landmark achievement. “This transaction with the leading development finance institution in Nigeria is a great milestone that will significantly impact Nigeria’s economy by unlocking up to $100 million in financing for small and medium enterprises.

“African Guarantee Fund will also provide tailored guarantees and technical assistance towards the special small and medium enterprise products offered by Bank of Industry that target women, youth, and green businesses.”

Dr Olasupo Olusi, Managing Director and CEO of BOI, described the partnership as aligning with the Nigerian government’s economic goals.

“Bank of Industry is excited to leverage the guarantee framework of the African Guarantee Fund in promoting sustainable growth, gender equity, innovation, and advancing more credit to small and medium enterprises in Nigeria in line with President Bola Tinubu’s Renewed Hope agenda,” he stated.

AFAWA has so far mobilised over $2.4 billion in lending for women-led SMEs across Africa. The initiative, supported by partners such as the Women Entrepreneurs Finance Initiative (We-Fi) and G7 countries, has facilitated access to financing for more than 18,600 women-led businesses in 44 African nations.

The new partnership marks a crucial step towards bridging the financing gap faced by Africa’s women entrepreneurs while fostering industrialisation, innovation, and economic transformation in Nigeria.