The Bank of Industry (BOI), Nigeria’s foremost development finance institution, has unveiled a groundbreaking Sustainable Finance Framework designed to catalyze inclusive and climate-resilient economic growth within the nation. This strategic blueprint solidifies BOI’s commitment to aligning its financing activities with global sustainability standards and leading Environmental, Social, and Governance (ESG) practices. The framework signifies a pivotal step in BOI’s transformation into a fully sustainable development finance institution, emphasizing its dedication to funding enterprises that generate both economic value and measurable positive social and environmental impacts. This initiative reflects the growing global trend of sustainable finance, recognizing the interconnectedness of financial returns with environmental and social well-being.
The Sustainable Finance Framework embodies BOI’s commitment to a triple-bottom-line approach, prioritizing People, Planet, and Profit. This model ensures that the bank’s investments not only yield financial returns but also contribute to inclusive social development and environmental sustainability. This framework is meticulously aligned with key global and national sustainability principles, including the UN Sustainable Development Goals, the Paris Agreement, the Principles for Responsible Banking, and the Nigerian Sustainable Banking Principles. This alignment underscores BOI’s dedication to contributing to both national and global sustainability agendas, reflecting a commitment to responsible and impactful investment practices. Furthermore, the framework incorporates BOI’s internal ESG frameworks, including its ESG and Corporate Social Responsibility policies, demonstrating the bank’s holistic approach to integrating sustainability throughout its operations.
BOI’s Sustainable Finance Framework serves as a crucial instrument for mobilizing Green, Social, and Sustainability Bonds and Loans. These financial instruments, raised in accordance with international capital market principles and guidelines, will provide the necessary capital to support businesses committed to sustainable practices. This strategic approach will enable BOI to unlock access to blended and concessional capital, attracting investments from institutions seeking impactful ESG-aligned opportunities in emerging markets. By aligning with international best practices, BOI enhances its credibility and attractiveness to global investors interested in supporting sustainable development initiatives. The framework’s endorsement by S&P Global Ratings, through a second-party opinion affirming its adherence to international sustainable finance principles, further reinforces its robustness and credibility.
The framework is poised to significantly advance national priorities, including climate resilience, job creation, gender inclusion, and export diversification. By channeling investments towards sustainable enterprises, BOI aims to contribute to a more resilient and inclusive Nigerian economy. The framework’s focus on sectors such as renewable energy, clean transportation, agro-processing, healthcare, education, and digital infrastructure demonstrates BOI’s commitment to driving sustainable development across key sectors. This targeted approach ensures that investments are directed towards areas with the greatest potential for positive social and environmental impact, while simultaneously contributing to economic growth. The Framework aligns with BOI’s 2025-2027 corporate strategy, emphasizing the importance of long-term development impact, environmental stewardship, social inclusion, and value creation, while addressing national and global challenges.
BOI, as Nigeria’s oldest and largest development finance institution, plays a crucial role in facilitating the transformation of the nation’s industrial sector. Operating across 33 states, BOI provides financial and advisory support to a wide range of businesses, from large corporations to small and medium-sized enterprises (SMEs). Its support encompasses project establishment, expansion, diversification, rehabilitation, and modernization of existing enterprises. The Sustainable Finance Framework further strengthens BOI’s capacity to fulfill its mandate, enabling it to scale its impact across priority sectors and contribute to a more sustainable and prosperous future for Nigeria. This proactive approach to sustainable finance underscores BOI’s leadership in the Nigerian financial landscape and its commitment to driving positive change.
The launch of the Sustainable Finance Framework marks a significant milestone in BOI’s journey towards becoming a leading sustainable development finance institution. This initiative solidifies the bank’s commitment to integrating ESG principles into its core operations and investment decisions. By aligning its financing activities with global sustainability standards and national development priorities, BOI is poised to play a pivotal role in driving inclusive and climate-resilient economic growth in Nigeria. This strategic move not only strengthens BOI’s position as a responsible financial institution but also contributes to a more sustainable and prosperous future for the nation. The Framework represents a significant step forward in promoting sustainable development within Nigeria’s financial sector and demonstrates BOI’s dedication to creating long-term value for both its stakeholders and the wider community.
