The Bank of Industry (BoI) has received approval from the Central Bank of Nigeria (CBN) to launch non-interest banking services aimed at helping more Micro, Small and Medium Enterprises (MSMEs) and underserved businesses access financing across Nigeria.
The regulatory approval marks a significant expansion of BoI’s financing framework and is expected to strengthen the bank’s ability to support industrial growth by providing ethical, asset-backed funding options that do not charge interest.
The development was disclosed in a statement by the Managing Director of BoI, Mr Olasupo Olusi, who described the approval as an important step in widening access to finance for businesses that have traditionally struggled to obtain funding.
According to Olusi, the introduction of non-interest banking services will allow the bank to reach a broader category of entrepreneurs, particularly those seeking alternative financing structures aligned with ethical or faith-based principles.
“This development marks a significant milestone in the Bank of Industry’s growth and long-term development agenda,” Olusi said.
“It positions the bank to further advance Nigeria’s sustainable and inclusive industrial development through tailored financial solutions for underserved and high-impact business segments.”
Under the new framework, BoI will be able to provide asset-backed financing solutions that focus on funding equipment, raw materials and productive assets for businesses without charging interest.
Olusi explained that the structure promotes risk-sharing between the bank and customers while ensuring that financing is tied directly to real economic activities.
“Under this framework, BoI will be able to finance assets and raw materials for customers using approved non-interest banking products,” he stated.
The new service is also expected to deepen the bank’s support for MSMEs, which remain a key driver of employment and economic activity in Nigeria but often face difficulties accessing traditional credit.
By introducing non-interest banking, BoI aims to expand its financial offerings and attract new categories of investors and entrepreneurs who prefer ethical and partnership-based financing models.
Olusi also noted that the approval reflects the Central Bank of Nigeria’s confidence in BoI’s governance structure and its commitment to responsible financing practices.
The bank believes the initiative will allow it to scale its operations, introduce innovative financial products and improve access to funding for businesses that are critical to Nigeria’s industrial development.
