World Bank, BOI Chart New Development Finance Model To Boost Nigeria’s Economy

The World Bank and the Bank of Industry have outlined a bold new framework for development finance designed to accelerate job creation, unlock private capital, and deepen financial inclusion across the country.

Speaking at the second edition of the Bank of Industry Development Lecture Series in Abuja, the World Bank Country Director for Nigeria, Dr Matthew Verghis, and Chairman of the BOI Board, Dr Mansur Muhtar, emphasised the urgency of rethinking Nigeria’s development finance architecture to reflect changing global realities and domestic needs.

The event, themed “Development Finance Imperatives: Rethinking Nigeria’s Path Forward”, was attended by key stakeholders in the financial sector, including the Director-General of the African Development Bank, Nigeria Office, Dr Abdul Kamara; the Managing Director of the Bank of Agriculture, Mr Ayo Sotinrin; and a former Deputy Governor of the Central Bank of Nigeria, Dr Sarah Alade.

Also in attendance are the Managing Director of the Bank of Industry, Dr Olasupo Olusi; the first female Chairman of First Bank Plc, Mrs Ibukun Awosika; and the Managing Director of the Nigeria Export-Import Bank, Mr Abba Bello, among others.

Verghis said the country is at a turning point, with clear signs of macroeconomic stability emerging from the government’s ongoing reform efforts.

He pointed to easing inflation, rising reserves, and growing industrial confidence as evidence that policy consistency and fiscal discipline were beginning to yield tangible results.

He also described the removal of Nigeria from the Financial Action Task Force (FATF) grey list as a landmark achievement, signalling that the country’s financial system now meets international anti-money laundering standards.

“It is a signal that Nigeria’s anti-money laundering structures now meet international benchmarks,” he said. “That single step enhances investor trust and strengthens the foundation for sustainable economic growth.”

However, Verghis cautioned that poverty and unemployment remain persistent challenges, noting that millions of Nigerians have yet to feel the benefits of macroeconomic reforms.

“We are seeing progress in stabilisation, but the purchasing power of citizens remains weak because inflation is still high,” he said. “To sustain these reforms, we must focus on policies that drive job creation and increase access to finance.”

According to him, Nigeria must adopt a new model of development finance that mobilises private capital and leverages digital innovation to fill existing gaps in infrastructure and enterprise funding.

He argued that traditional models in which governments and donors directly fund infrastructure are no longer sufficient to meet Nigeria’s enormous needs, estimated at hundreds of billions of dollars annually.

“Following conventional financing approaches will not take us close to our infrastructure or enterprise goals,” Verghis said. “We need a shift, one that treats development finance not as an end in itself, but as a tool for structural transformation.”

He said the World Bank was supporting a range of new mechanisms to deepen access to finance and crowd in private investment.

Among these is the Fostering Inclusive Finance for MSMEs (FIRM) Project, a $500m initiative expected to attract at least four times that amount in private sector funding.

The project aims to bridge Nigeria’s $120bn financing gap for small and medium enterprises by deploying innovative instruments such as subordinated debt, MSME investment funds, and partial credit guarantees.

“We are very excited about the FIRM project,” Verghis noted. “It will expand MSME access to long-term capital and provide the financial infrastructure needed for growth.”

He also emphasised the potential of digital innovation to transform Nigeria’s financial landscape.

“Some of Africa’s most creative fintechs are based here in Nigeria,” he said. “By leveraging technology, we can make credit cheaper, faster, and more inclusive, especially for the underserved segments of the economy.”

Verghis further pointed to InfraCredit and the proposed Nigeria Infrastructure Finance and Guarantees Platform as transformative tools for sustainable project financing.

These structures, he said, could enable financiers and project developers to collaborate more efficiently, creating a “bankable pipeline” of infrastructure projects without the delays typical of traditional public-private partnerships.

On his part, BOI Chairman Dr Mansur Muhtar called for deeper collaboration among public institutions, private investors, and development partners to create an environment conducive to inclusive and sustainable growth.

He said the BOI remained committed to its mandate of driving industrialisation and supporting businesses through innovative and responsible lending.

“At the Bank of Industry, we believe that inclusive and sustainable investment-led growth is not just a goal; it is a necessity,” Muhtar said. “Our mission is to drive industrial transformation by supporting enterprises, deepening sectoral linkages, and embracing technology to unlock new opportunities.”

He noted that the BOI Development Lecture Series had become an intellectual forum for shaping Nigeria’s future, serving as a meeting point for policymakers, investors, academics, and civil society to share ideas on how to move the country’s development finance agenda forward.

He said, “This platform is about rethinking how we fund and drive Nigeria’s development. The challenges of today, from digital disruption and global economic uncertainty to climate change, demand that we innovate in how we finance progress and build stronger institutions.”

Muhtar emphasised that Nigeria’s financial institutions must evolve from being traditional lenders to becoming development catalysts capable of providing both financial and non-financial support to enterprises.

He said the BOI was already pursuing this vision through targeted interventions for small businesses, women entrepreneurs, and technology-driven enterprises.

“Through our programmes, we are demonstrating that development finance is not only about disbursing loans.

“It is about enabling businesses to scale, build capacity, and become globally competitive. It is about supporting the real economy, the farmers, manufacturers, innovators, and creators who make up the backbone of our society,” he added.

Muhtar also commended the growing collaboration between the BOI, the World Bank, and other development finance institutions in Nigeria, describing it as “a model of partnership that aligns knowledge, finance, and policy for shared prosperity.”

“As stakeholders in Nigeria’s future, we have a shared responsibility to explore more innovative financing models,” Muhtar added. “We must build stronger institutions, promote inclusive growth, and ensure that every Nigerian, regardless of background, feels the impact of development.”

Speaking at the closing ceremony of the BOI Annual Public Lecture Series in Abuja, the Managing Director of the bank, Olasupo Olusi, said the event reflects the institution’s evolving role as a strategic partner in shaping Nigeria’s development narrative.

The BOI chief noted that the annual public lecture, which began last year with the maiden edition titled “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria”, has become a thought-leadership platform for generating ideas that strengthen Nigeria’s development ecosystem.

“The Bank of Industry is not just a financial institution. We are a partner in shaping Nigeria’s development journey,” the BOI boss said. “This year’s theme is both timely and urgent. The global economy is shifting rapidly—from climate pressures to digital disruption and from evolving trade patterns to growing demands for inclusive growth. Nigeria cannot afford to stand still.”

He stressed that development finance must move beyond project-based lending to become an enabler of structural transformation, capable of unlocking private capital, driving innovation, and ensuring that economic growth translates into real improvements in citizens’ lives.

According to him, the focus of Nigeria’s development finance institutions should align with President Bola Tinubu’s Renewed Hope Agenda, which envisions a resilient and sustainable economy that empowers people and fosters innovation.

“President Tinubu has consistently emphasised building a resilient, sustainable, and inclusive economy—one that creates wealth and empowers citizens. Development finance is central to this vision. It must not only fund projects but drive transformation and inclusion,” he added.

Panellists at the event agreed that the future of Nigeria’s economy depends on sustained reform implementation, investor confidence, and policy stability.

They also underscored the importance of a public sector-facilitated but private sector-led development model to ensure long-term economic transformation.