BOI and AFD join forces to fight climate change in Nigeria
29-08-2022 10:52:00 | by: Marlene Mutimawase | hits: 2675 | Tags:

The transaction was approved by AFD under its Transforming Financial Systems for Climate (TFSC) Program with the Green Climate Fund (GCF). The TFSC is an USD650mn-Program developed in 17 countries for 100% climate investment projects. 

The credit facility will focus on financing investments that contribute to climate change mitigation or adaptation, specifically projects focused on renewable energy, low carbon and efficient energy generation, climate smart agriculture technologies, clean urban transportation and others.

“This is the beginning of a long-term mutually beneficial relationship and a significant step for BOI as we scale up our green-lending capacity. Given the serious threat that climate change poses to equitable and sustainable development in Nigeria. It is critical for us at BOI to take the lead in mobilizing capital for green and sustainable investment” said Olukayode Pitan, Managing Director/Chief Executive Officer, Bank of Industry, at the credit agreement signing ceremony, which took place at the BOI head office in Lagos.

Xavier Muron, Country director for AFD, highlighted the importance of such a project in the framework of the fight against climate change globally. He added that this new credit line is a key milestone towards the achievement of the Paris Agreement. This Programme is timely since Nigeria is looking forward launching its Energy Transition Plan. 

The financing package will also include a €2.5mn grant facility dedicated to a technical assistance programme aimed at mainstreaming Climate Finance within BOI’s strategy and operations. It will support capacity building for BOI and its customers, thereby providing tools for effective identification and development of eligible bankable climate-related projects as well as improving the readiness of the bank’s customers to implement green practices in their operations. 

This transaction highlights both AFD’s and BOI’s longstanding commitment to achieving the United Nations’ Sustainable Development Goals. Thus, BOI operates under a robust Environment and Social Governance (ESG) framework that has been integrated into its operations. For the successful implementation of the project, BOI leverages on a global network of partners to stay at the forefront of sustainable development.

Olukayode Pitan acknowledged the dedication of AFD, the GCF and its strategic partners to ensure the consummation of this deal: “This is the first time we have worked with AFD, and we were impressed by how the AFD invested significant time and effort to structure the facility to our specific requirements and operating model. This is a strong foundation for a long-term partnership.”