By: Peter Emmanuel |
The Bank of Industry (BOI) has credited President Bola Ahmed Tinubu’s support for the strong investor response to its ₦250 billion Series 1 Fixed Rate Bond, which was oversubscribed within five working days.
The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, marking a major step in BOI’s efforts to raise long-term funding from Nigeria’s domestic capital market.
BOI Chief Executive Officer, Olasupo Olusi, said the response from investors showed confidence in the bank and the capacity of Nigeria’s domestic market to mobilise long-term capital for productive investment.
He said the transaction would enable the development finance institution to increase financing to Nigerian businesses, with expected benefits for industrial expansion, job creation, local value chains and economic diversification.
The development comes as BOI seeks to deepen its domestic funding base at a time when access to long-term international development finance is becoming more constrained. The bank has previously said greater mobilisation of domestic capital is necessary to finance Nigeria’s development priorities.
Tinubu’s Support Credited for Investor Response
Olusi said the strong demand for the bond would not have been possible without the support of Tinubu, who he said approved incentives aimed at encouraging investors to participate in the transaction.
“As a Development Finance Institution, we could not have received the strong investor demand for the bond in five working days without the support of President Tinubu,” Olusi said.
He said the incentives provided a positive signal to investors and helped strengthen confidence in the transaction.
Olusi described the response as a vote of confidence in BOI and the ability of Nigeria’s domestic capital market to mobilise long-term funds for productive sectors.
He said the development also demonstrated the administration’s support for Nigeria’s productive sector and its efforts to expand access to finance for businesses.
₦250bn Bond to Expand Business Financing
The proceeds from the bond will increase BOI’s capacity to provide long-term financing to eligible businesses operating in priority sectors of the economy.
Olusi said the ultimate goal was to turn investor confidence into increased financing for Nigerian enterprises and support investments that could expand production and create jobs.
The bank said the funding would support productive capacity, local value addition, employment creation and economic diversification.
The CEO also said a ₦100 billion fund approved for BOI by Tinubu would be used alongside the bond proceeds to help cushion the effect of high interest rates on manufacturers and other BOI customers.
BOI’s latest impact figures show the scale of its existing lending activities. The bank reported ₦636 billion in disbursements to more than 7,000 businesses in 2025, while about 1.6 million jobs were created or retained through its financing activities.
Transaction Deepens Nigeria’s Domestic Capital Market
The bond represents a broadening of BOI’s funding structure, complementing the bank’s established record of raising funds from international capital markets with increased mobilisation of domestic institutional investment.
The bank said the strength and quality of investor demand, the pricing achieved and the breadth of the investor base were more significant at this stage than the final subscription figure.
BOI and its transaction advisers said final subscription and allotment figures would not be disclosed yet because the final allotment remains subject to approval by the Securities and Exchange Commission (SEC).
The transaction is being undertaken under BOI’s $1 billion Medium-Term Multi-Currency Instruments Programme, for which the bank has secured SEC approval.
The bank said the successful transaction would strengthen the domestic market for long-term development capital and reinforce BOI’s position as a repeat issuer capable of mobilising institutional funding for productive investment.
