The Bank of Industry (BOI), Nigeria’s premier development finance institution, has unveiled a comprehensive Sustainable Finance Framework, marking a pivotal step in its evolution towards becoming a fully sustainable development finance institution. This framework serves as a strategic roadmap, aligning BOI’s financing activities with global sustainability standards and leading Environmental, Social, and Governance (ESG) practices. It underscores the bank’s commitment to fostering inclusive and climate-resilient growth in Nigeria by integrating sustainability considerations into its core operations and investment decisions. The framework’s development reflects the growing global recognition of sustainable finance as a crucial tool for achieving long-term economic prosperity while addressing pressing environmental and social challenges.
BOI’s Sustainable Finance Framework is intricately linked to its 2025-2027 corporate strategy, which prioritizes long-term development impact, environmental stewardship, social inclusion, and the creation of shared value. This alignment signifies the bank’s dedication to addressing both national and global challenges through its financing activities. The framework draws upon key international 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 comprehensive approach ensures that BOI’s operations are guided by globally recognized best practices in sustainable finance. Furthermore, the framework incorporates BOI’s internal ESG frameworks, including its ESG and Corporate Social Responsibility policies, demonstrating a holistic integration of sustainability into the bank’s governance structure and operational procedures.
At the core of the framework is the adoption of a “triple-bottom-line” model, focusing on People, Planet, and Profit. This approach ensures that BOI’s investments not only generate financial returns but also contribute to positive social and environmental outcomes. The framework provides a structured mechanism for BOI to raise Green, Social, and Sustainability Bonds and Loans, adhering to the latest guidelines established by international financial institutions such as the International Capital Market Association (ICMA), the Loan Market Association (LMA), and the Loan Syndications and Trading Association (LSTA). This structured approach to sustainable financing will enable BOI to attract investments from institutions seeking impactful ESG-aligned opportunities. The framework’s alignment with these internationally recognized principles enhances its credibility and transparency, attracting investors seeking responsible and impactful investment opportunities.
The framework has received independent validation from S&P Global Ratings, a leading credit rating agency, which issued a second-party opinion confirming its alignment with international sustainable finance principles. This independent assessment reinforces the framework’s robustness and credibility, particularly among institutional investors seeking ESG-aligned opportunities in emerging markets. The validation from S&P Global Ratings strengthens BOI’s position as a leader in sustainable finance within the Nigerian financial landscape and enhances its ability to attract international capital for sustainable development projects.
Through this framework, BOI aims to empower businesses committed to sustainable practices, unlock access to blended and concessional capital, and advance national priorities such as climate resilience, job creation, gender inclusion, and export diversification. The framework’s focus on these critical areas aligns with Nigeria’s broader development goals and positions BOI as a key player in driving sustainable and inclusive economic growth. By supporting businesses that embrace sustainable practices, BOI contributes to a more resilient and environmentally responsible private sector. Access to blended and concessional capital will further incentivize businesses to adopt sustainable practices, accelerating the transition to a greener and more inclusive economy.
The framework enables BOI to scale its impact across a range of priority sectors crucial for Nigeria’s economic development and social progress, including renewable energy, clean transportation, agro-processing, healthcare, education, and digital infrastructure. By channeling investments into these sectors, BOI can catalyze sustainable development and contribute to achieving the UN Sustainable Development Goals in Nigeria. The focus on these sectors aligns with global trends towards green and inclusive growth, positioning Nigeria for long-term economic prosperity and social well-being. The framework’s strategic focus on these sectors will accelerate the transition to a more sustainable and diversified Nigerian economy, creating jobs, improving livelihoods, and enhancing the country’s competitiveness in the global market. Moreover, it demonstrates BOI’s commitment to leveraging its resources and expertise to address critical development challenges and contribute to a more sustainable future for Nigeria.
