Bank of Industry has announced plans to expand its investment in renewable energy and climate sustainability projects as Nigeria faces rising economic pressure from climate change, energy costs and industrial inefficiency.
Follow us on Google News
The development was disclosed by the Managing Director and Chief Executive Officer of BOI, Dr. Olasupo Olusi, in a recent op-ed where he described sustainable industrialisation as an economic necessity for Nigeria rather than an environmental campaign.
According to him, climate change is already disrupting businesses, agriculture, manufacturing and infrastructure across the country, warning that Nigeria could suffer major economic losses if urgent action is not taken.
Olusi said BOI will direct at least 10% of its financing interventions between 2025 and 2027 towards climate and sustainability-focused projects. The investments will cover renewable energy solutions, climate-smart agriculture, energy-efficient manufacturing systems, clean transportation, pollution control and sustainable industrial processes.
“At BOI, integrating sustainability into how we deploy capital is central to our mandate of supporting Nigeria’s industrialisation,” he stated.
The move comes at a time when many Nigerian businesses continue to battle high operating costs caused by poor electricity supply and dependence on generators. BOI cited industry findings showing that energy costs account for as much as 40% of operating expenses for some manufacturers and Micro, Small and Medium Enterprises (MSMEs).
The bank also referenced reports showing that Nigeria currently operates more than 20 gigawatts of off-grid electricity generation, largely powered by diesel and petrol generators due to unreliable grid power.
According to Olusi, this dependence on expensive fuel sources is reducing productivity, weakening competitiveness and discouraging long-term investment in Nigeria’s industrial sector.
He explained that cleaner energy systems and energy-efficient technologies now represent a major opportunity for Nigerian businesses looking to reduce costs and remain competitive globally.
“Investing in efficient motors, cleaner production processes, and scalable transition-to-clean energy solutions can lower energy consumption, reduce fuel dependency, and help Nigerian businesses comply with emerging environmental standards,” he said.
BOI also revealed that it has secured accreditation as a National Implementing Entity under the Adaptation Fund, giving the institution direct access to international climate adaptation finance.
The accreditation allows BOI to access up to $25 million per climate adaptation project and a cumulative $40 million across nationwide programmes aimed at helping vulnerable communities adapt to floods, droughts, heatwaves and other environmental threats.
Olusi noted that the role of Development Finance Institutions (DFIs) is becoming increasingly important as emerging economies seek funding for energy transition, climate resilience and sustainable industrial development.
He added that global investors are now paying closer attention to Environmental, Social and Governance (ESG) standards before committing capital, warning that businesses that fail to adapt could lose access to international markets and supply chains.
“Those that fail to adapt risk being locked out of global value chains, while those that embrace sustainability can unlock new growth pathways,” he stated.
The BOI boss further disclosed that the institution is implementing internal sustainability measures across its operations, including solar power adoption, electric staff buses, waste recycling and paper reduction initiatives.
He said BOI’s paper decluttering programme, which was carried out across 34 locations nationwide, converted recycled paper waste into toilet paper distributed to charities as part of the bank’s Corporate Social Responsibility (CSR) efforts.
Nigeria remains one of the countries most vulnerable to climate shocks despite contributing less than 0.5% of global greenhouse gas emissions, according to the National Council on Climate Change.
Recent floods, heatwaves and unpredictable rainfall patterns have continued to affect farms, businesses and infrastructure across several states, raising concerns over the long-term impact of climate change on Nigeria’s economy and industrial growth.
Olusi maintained that sustainable industrialisation offers Nigeria an opportunity to build a more resilient economy while creating jobs, reducing production costs and attracting future investment.
“The future will belong to those who prepare for it today. At BOI, we remain deeply committed to helping make that future possible,” he said.
