Thousands of Nigerian businesses may soon have more opportunities to secure long-term funding after the Bank of Industry (BOI) opened subscriptions for a N250 billion bond. The fundraising exercise will provide fresh capital for BOI to lend to businesses operating in key sectors of the Nigerian economy.
Subscriptions opened on August 5 and will close on August 11. Institutional and qualified investors will purchase the five-year bond, while BOI will use the proceeds to finance businesses that meet its lending requirements.
Who Can Apply for BOI Funding?
The offer document shows that BOI plans to finance businesses and projects in:
- Agriculture and food processing
- Healthcare
- Engineering
- Technology
- Renewable energy
- Petrochemicals
- Oil and gas
- Creative industries
- Solid minerals
BOI said the programme will make more medium- and long-term loans available to businesses in these industries.
“The financing is in line with our development finance mandate and will help improve access to medium- and long-term funding for Nigerian enterprises.”
The lender added that the new loans will help businesses expand operations, employ more people, produce more goods, reduce reliance on imports and increase exports.
How the N250bn BOI Bond Works
The offer is available to institutional and qualified investors with a minimum subscription of N5 million. Investors can increase their investment in multiples of N1 million.
BOI priced the bond to deliver a fixed yield of 17.35% to 17.50%. It will pay interest every six months, begin repaying the principal in the third year and mature in 2031. The bond will trade on the FMDQ Securities Exchange and is exempt from tax.
BOI by the Numbers
Beyond the new fundraising exercise, BOI said it financed more than one million businesses and disbursed over N1.27 trillion between 2023 and 2025. The lender operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank also reported strong financial results. Gross earnings grew at an average annual rate of 36% between 2021 and 2025, while interest income increased from N538 billion in 2024 to N884 billion in 2025.
At the same time, BOI maintained a 39% capital adequacy ratio, almost four times the regulatory minimum of 10%. Its non-performing loan ratio stood at 1.7%, well below the Central Bank of Nigeria’s prudential limit of 5%.
The N250 billion bond marks the first issuance under BOI Financing SPV Plc’s $1 billion multi-currency programme, which will raise additional funds for future lending to qualifying Nigerian businesses.
Frequently Asked Questions
Who can apply for a BOI loan?
Businesses in agriculture, healthcare, technology, manufacturing, renewable energy, creative industries, oil and gas, petrochemicals and solid minerals can apply for BOI funding.
How do I apply for a BOI loan?
Apply through BOI’s application process when a funding window opens.
What are the requirements for a BOI loan?
BOI sets different requirements for each funding programme, depending on the type of business and loan.
Can small businesses benefit from the BOI N250bn fund?
Yes. BOI will use the money raised to finance eligible businesses through its lending programmes.
When will the BOI N250bn bond close?
Subscriptions opened on August 5 and will close on August 11.
