Bank of Industry Allocates N825 Million Green Fund for MSMEs Cost Reduction

The Bank of Industry (BOI) has revealed that both small and large enterprises throughout Nigeria are benefitting from lower production costs and enhanced operational efficiency by leveraging a clean energy financing of N825 million.

BOI indicated that the funding, made available through a $600,000 initiative under the Global Environment Facility–United Nations Industrial Development Organisation (GEF-UNIDO) Industrial Energy Efficiency (IEE) and Resource Efficient and Cleaner Production (RECP) programme, has facilitated investments into energy-saving technologies and eco-friendly production practices in critical sectors.

During a presentation of the project's financing outcomes to stakeholders in Abuja, Mrs. Ifeoma Uz’Okpala, BOI’s Executive Director for Risk Management and IT, asserted that the initiative is a testament to how aimed funding can effectively foster industrial advancement alongside environmental stewardship.

She elaborated that "$550,000 of the overall project budget was allocated to BOI for on-lending to qualifying industries, empowering businesses to implement contemporary, energy-efficient machinery and cleaner production methodologies."

She noted that the intervention encompassed a wide array of solutions, such as renewable energy systems, recycling frameworks, and resource-efficient manufacturing processes.

“The financial support has enabled firms to lessen energy consumption, lower operational expenditures, and enhance productivity, all while boosting their environmental performance,” she stated.

Uz’Okpala added that the program was executed with backing from the Global Environment Facility and UNIDO, alongside the Manufacturers Association of Nigeria (MAN), to ensure broad participation from the industrial sector.

Dr. Reuben Bamidele, UNIDO’s National Programme Officer, also spoke about the project, characterizing it as a pivotal element of Nigeria's Programme for Country Partnership strategy, highlighting its substantial potential for promoting resource-efficient and cleaner production methodologies across the nation.

Bamidele stressed that ongoing collaboration among government bodies, financial institutions, and development allies is vital for expanding the benefits of the initiative.

Mr. Segun Ajayi-Kadir, the Director-General of MAN and chairman of the project’s investment committee, remarked that the initiative included risk- sharing instruments that encourage private sector engagement, stating that "the application of a first-loss guarantee structure mitigated lending risks and motivated financial institutions to fund investments in innovative and energy-efficient technology."