FG Seeks Africa-Specific Credit Rating System to Cut Borrowing Costs

…BOI Sets New Benchmark For Measuring Development Impact

The Federal Government has called for the development of an Africa-specific credit assessment and rating system to reduce borrowing costs for businesses, saying existing global risk assessment models do not adequately reflect the realities and opportunities within African economies.

The call was made by the Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, during the launch of the Bank of Industry’s (BOI) inaugural Annual Development Impact Report in Abuja on Thursday.

The minister said lower borrowing costs and improved access to finance are critical to achieving the administration’s ambition of building a more productive, investment-driven economy.

According to her, while Nigeria has embarked on far-reaching economic reforms under President Bola Tinubu’s Renewed Hope Agenda, access to affordable finance remains one of the biggest obstacles facing businesses, particularly Micro, Small and Medium Enterprises (MSMEs).

She said, “Access to credit remains one of the most persistent barriers to enterprise growth in Nigeria. We have made progress with the National Credit Guarantee Company and other initiatives, but we must do more.”

Uzoka-Anite stressed that development finance institutions, multilateral agencies and development partners must work together to create financing structures that better reflect Africa’s economic realities.

“We call on our development partners, as well as our development finance partners, to support the development of enhanced Africa-specific assessment and rating systems because they will better understand African risk profiles. This will reduce risk premiums, lower borrowing costs and make finance more accessible to productive businesses,” she said.

She noted that high borrowing costs, coupled with stringent collateral requirements, continue to limit the growth potential of many Nigerian enterprises despite the abundance of investment opportunities.

The minister explained that Nigeria’s development strategy is increasingly focused on mobilising private capital rather than relying solely on public resources.

According to her, “Public resources must mobilise private capital. Governments will increasingly be judged not by how much they spend but by how effectively they mobilise investment, manage institutions and inspire confidence.”

She added that the country must position itself as an attractive investment destination by strengthening governance, improving transparency, protecting investments and ensuring policy consistency.

Uzoka-Anite maintained that project preparation had become one of the most important determinants of successful investment mobilisation.

“The greatest constraint to investment is not necessarily the availability of finance. Project preparation transforms ideas into investment opportunities, concepts into bankable transactions and ambition into measurable growth,” she stated.

She said the Federal Ministry of Finance and National Planning was aligning development finance with the National Development Plan 2026-2030 and the Renewed Hope Agenda, which prioritise agriculture, manufacturing, energy, digital infrastructure, healthcare, green growth and inclusive industrialisation.

She further disclosed that Nigeria is positioning itself to access green bonds, carbon markets and sustainable finance while mobilising domestic resources through ongoing tax reforms and improved revenue administration.

According to the minister, investors require confidence that policies will remain predictable and that their investments will be adequately protected.

“Investment protection is not negotiable. Investors must have confidence that their capital is safe. We are strengthening our legal and regulatory frameworks to protect investments and resolve disputes efficiently,” she added.

Uzoka-Anite congratulated the Bank of Industry for producing its first Development Impact Report, describing it as an important step toward improving accountability and ensuring that development finance delivers measurable results.

She said, “Development finance is not only about disbursing funds. It is about measuring outcomes, learning from experience and continually improving performance.”

Earlier, the Managing Director and Chief Executive Officer of the Bank of Industry, Dr Olasupo Olusi, said the newly launched report represents a significant milestone in the bank’s commitment to transparency, accountability and evidence-based development financing.

According to him, BOI’s interventions have gone beyond providing credit to businesses by generating employment, strengthening value chains, expanding infrastructure and improving livelihoods across the country.

“Our interventions translated into tangible outcomes by supporting millions of jobs, strengthening value chains, improving infrastructure and empowering communities across Nigeria,” Olusi said.

He explained that the institution remains committed to ensuring that development finance reaches every segment of society, including MSMEs, women-owned businesses, youth-led enterprises and strategic infrastructure projects.

Olusi said the inaugural report reflects the bank’s determination to evaluate development outcomes with the same discipline applied to financial performance.

“The Annual Development Impact Report is our institutional expression of accountability. By strengthening how we evaluate, report and learn from our interventions, we are building a more transparent and impact-driven institution,” he said.

He disclosed that the report had been independently assured by KPMG in line with international best practices, providing additional credibility to the findings and reinforcing the bank’s commitment to global reporting standards.

According to him, development finance institutions must increasingly demonstrate measurable impact rather than simply report loan disbursements.

“We believe the opportunity for development finance extends beyond financial returns to demonstrating the real difference our interventions make to businesses, communities, standards of living and the Nigerian economy,” Olusi stated.

The BOI chief also acknowledged the support of the Federal Government and several international development partners, including the African Development Bank, African Finance Corporation, African Export-Import Bank, World Bank Group, European Union, Islamic Development Bank, United Nations Development Programme and others.

He pledged that the bank would continue to deepen strategic partnerships to mobilise more resources for industrialisation, enterprise development and inclusive economic growth.

Also speaking, the Minister of State for Industry, John Enoh, described the Bank of Industry as a critical institution in the implementation of Nigeria’s industrial transformation agenda.

He said the bank has consistently translated enterprise potential into real economic outcomes through financing support for businesses across productive sectors.

“There is hardly any enterprise I have visited that did not begin by acknowledging the impact and contributions of the Bank of Industry,” Enoh said.

He noted that BOI’s interventions have supported new businesses, created jobs, strengthened livelihoods and expanded value chains, thereby contributing significantly to national productivity.

The minister said the event came at a strategic period following the launch of Nigeria’s Industrial Policy earlier this year, which provides a comprehensive roadmap for industrialisation, job creation, value addition and export competitiveness.

According to him, the government has shifted its focus from policy formulation to implementation, backed by clearly defined timelines and measurable performance indicators.

“We have always said that policies do not transform economies; implementation does. That is why what matters is not merely the figures reported by the Bank of Industry but the impact of those figures,” he stated.

Enoh disclosed that the Federal Government had already released the first 90-day implementation report on the industrial policy, highlighting progress in partnerships with the African Development Bank on industrial clusters, the proposed N350bn MSME Development Fund, skills development programmes and initiatives aimed at improving manufacturing competitiveness.

He added that industrialisation was now being pursued through coordinated action involving finance, infrastructure, skills development, standards, procurement and investment promotion.

“This is where the Bank of Industry becomes central. BOI is not only a financing institution; it is a strategic partner in delivering Nigeria’s industrial transformation,” he said.

The minister called on international development partners to increase their support for Nigeria’s industrial agenda through long-term financing, technical assistance and strategic collaboration.

He also highlighted plans to deepen value addition in Nigeria’s cocoa industry to improve export earnings, create quality jobs and retain greater value within the domestic economy.

Enoh said development finance should ultimately be judged by its impact on businesses and citizens.

“Development finance must ultimately be measured by the businesses it strengthens, the jobs it creates and the industries it builds,” he said.

The launch of the BOI Annual Development Impact Report brought together senior government officials, development finance institutions, multilateral agencies, private sector operators and international development partners to review the role of development finance in accelerating Nigeria’s economic transformation.

ENDS