In a recent conference themed “Empowering Futures: A Collaborative Journey in Financing Nigeria’s Industrial Sector,” the Bank of Industry (BOI) and the International Finance Corporation (IFC) emphasized the critical need for collaborative investment financing to drive infrastructural development in Nigeria’s pursuit of industrialization. Held in Lagos, the event also underscored the importance of increased funding accessibility for businesses, women, and youth to foster sustainable growth in the country.
Sergio Pimenta, Regional Vice President Africa at IFC, revealed that IFC’s investment portfolio in Nigeria ranks as the second-largest in Africa, totaling an impressive two billion dollars. This substantial investment spans across various sectors, including trade finance, manufacturing, financial markets, and infrastructure. Pimenta outlined IFC’s strategic objectives in Nigeria, focusing on supporting diversified growth, enhancing inclusion, promoting sustainability, and creating job opportunities.
The conference stressed the significance of joint investments in critical sectors such as MSMEs, industrialization, agribusiness, energy, digitalization, and, notably, in youth and women. This collaborative effort is deemed essential to ensure sustainable growth in Nigeria. Pimenta highlighted the pivotal role of the Nigerian financial sector in supporting trade, financial inclusion, and access to finance for MSMEs.
Acknowledging Nigeria’s legislative reforms aimed at strengthening its financial infrastructure, Pimenta expressed confidence that these reforms would unlock Nigeria’s significant economic potential.
Addressing the urgent need for infrastructure development due to Nigeria’s rapidly growing population and urbanization, Pimenta urged collaborative efforts to bridge infrastructure gaps hindering private sector growth and overall economic development. He cited the housing sector as a prime example, emphasizing its investment potential and the resultant opportunities for job creation, inclusive growth, and economic development.
In line with these objectives, the IFC is collaborating with financial institutions to enhance access to finance and mortgages for informal income earners and prospective homeowners. Initiatives include the development of a securitization project with Nigerian financial institutions to mobilize long-term capital for housing.
Olasupo Olusi, Managing Director of BOI, highlighted the event’s purpose in developing a coherent, actionable plan to advance Nigeria’s industrial growth, aligning with President Bola Tinubu’s renewed hope agenda. Emphasizing industrialization as a key pillar of economic development and diversification, Olusi underscored the financial sector’s crucial role in facilitating a robust industrial sector. He acknowledged the entrepreneurial spirit of Nigerians and the abundance of good business ideas but identified a substantial funding gap, particularly within the SME segment.
The panel session, titled “Unlocking Sustainable Funding for Industrialization,” aimed to identify products to close the funding gap and mitigate risks. Olusi praised the strong commitment of IFC to supporting Africa’s largest economy, highlighting the robust bond between BOI and IFC. The conference showcased a united front in advocating collaborative financing to propel Nigeria towards its industrialization goals.
Credit: News Agency of Nigerian (NAN)
