Firms Reduce Costs, Improve Output With BOI’s N825m Green Fund

Small and large enterprises across Nigeria are recording lower production costs and improved operational efficiency following access to a N825m clean energy financing initiative by the Bank of Industry (BOI).

The funding, deployed under a $600,000 Global Environment Facility–United Nations Industrial Development Organisation (GEF-UNIDO) Industrial Energy Efficiency (IEE) and Resource Efficient and Cleaner Production (RECP) programme, has supported investments in energy-saving technologies and sustainable production systems across key sectors.

Speaking at the presentation of the project’s financing results to stakeholders in Abuja, BOI’s Executive Director for Risk Management and IT, Mrs Ifeoma Uz’Okpala, said the initiative had demonstrated how targeted funding could simultaneously drive industrial growth and environmental sustainability.

She explained that $550,000 of the total project fund was channelled through BOI for on-lending to eligible industries, enabling businesses to adopt modern, energy-efficient equipment and cleaner production methods.

According to her, the intervention covered a broad range of solutions, including renewable energy systems, recycling infrastructure, and resource-efficient production processes.

Uz’Okpala noted that enterprises in manufacturing, agro-processing, hospitality and logistics benefited from the scheme, with small businesses particularly supported through grants and financing for equipment upgrades.

“The financing has enabled companies to reduce energy consumption, cut operational costs and improve productivity, while also enhancing their environmental performance,” she said.

She added that the programme was implemented with support from the Global Environment Facility and UNIDO, in collaboration with the Manufacturers Association of Nigeria (MAN), to ensure wider participation within the industrial sector.

Also speaking, UNIDO’s National Programme Officer, Dr Reuben Bamidele, described the initiative as a key component of Nigeria’s Programme for Country Partnership framework, noting that it had shown strong potential for scaling up resource-efficient and cleaner production practices nationwide.

Bamidele emphasised that sustained collaboration among government agencies, financial institutions and development partners would be critical to expanding the gains of the programme.

He called for an expansion of the financing model to reach more industries and accelerate Nigeria’s transition to green manufacturing.

On his part, Director-General of MAN, Mr Segun Ajayi-Kadir, who also chairs the project’s investment committee, said the initiative incorporated risk-sharing mechanisms that helped unlock private sector participation.

He explained that the use of a first-loss guarantee structure reduced lending risks and encouraged financial institutions to support investments in innovative and energy-efficient technologies.

“The programme has catalysed additional investments beyond the initial funding and strengthened the competitiveness of participating industries,” he said.

A representative of the Federal Ministry of Environment, Mr Kabiru Jeda, commended stakeholders for aligning the initiative with Nigeria’s environmental sustainability and green growth objectives.

Similarly, the National Project Coordinator, Dr Jacob Oladapo, said the programme had gone beyond technical advisory by helping industries identify practical opportunities to cut costs, boost productivity and reduce environmental impact.

Oladapo, however, identified access to financing as a critical gap in scaling cleaner production practices, noting that the engagement was designed to guide stakeholders on funding options, eligibility criteria and how to convert technical recommendations into viable investments.

Stakeholders at the event agreed that expanding access to such targeted financing would be essential to deepening industrial efficiency, enhancing competitiveness and supporting Nigeria’s broader climate and development goals.