The Bank of Industry (BOI) is betting on growing investor appetite for high-quality domestic debt instruments as it prepares to raise up to ₦250 billion through its inaugural bond issuance to support long-term lending to Nigeria’s real sector.
The transaction, approved by the Securities and Exchange Commission, for the inaugural Series 1 issuance under its US$1 billion Medium-Term Multi-Currency Instruments Programme, paving the way for a five-year fixed-rate bond that will finance lending to priority sectors of the economy.
The planned issuance comes as Nigeria’s economic reforms begin to deliver greater stability in the foreign exchange market, moderating inflation and renewed investor confidence. Yet, manufacturers continue to struggle with elevated lending rates as the Central Bank of Nigeria’s tight monetary policy keeps borrowing costs high, limiting businesses’ ability to expand production, invest in new equipment and create jobs.
BOI said the bond forms part of its strategy to diversify funding sources while increasing the availability of long-term finance for Nigeria’s real sector, where access to affordable credit remains one of the biggest obstacles to industrial growth.
“The proposed issuance represents part of the bank’s ongoing efforts to diversify its funding sources, deepen its engagement with Nigeria’s domestic debt capital market and expand long-term financing to Nigeria’s real sector,” the bank said in a statement.
The Series 1 bond is structured as a five-year fixed-rate instrument with semi-annual coupon payments. It includes a two-year principal moratorium before amortising repayments begin, a structure designed to align with the long-term financing needs of industrial and development projects.
Proceeds from the issuance will be deployed to support BOI’s financing activities across priority sectors, including manufacturing, agribusiness and enterprises considered critical to Nigeria’s industrialisation and economic diversification agenda.
Manufacturers have repeatedly identified access to affordable long-term credit as one of the biggest impediments to improving capacity utilisation and competitiveness.
Although macroeconomic conditions have shown signs of improvement following recent policy reforms, many firms say the cost of borrowing remains prohibitive for capital-intensive investments.
By raising funds through the bond market, BOI hopes to bridge part of that financing gap and expand lending to businesses that require patient capital to scale operations.
Chapel Hill Denham and Quest Merchant Bank are acting as issuing houses for the transaction.
Between 2023 and 2025, BOI said it disbursed more than ₦1.27 trillion to over one million enterprises across the country, supporting businesses in key sectors and improving access to finance for underserved segments of the economy.
