Small and large enterprises across Nigeria are recording lower production costs and improved operational efficiency following access to a N825 million clean energy financing initiative by the Bank of Industry (BOI).
The funding, deployed under the $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 in Abuja at the presentation of the project’s financing results over the weekend, BOI’s Executive Director for Risk Management and IT, Mrs Ifeoma Uz’Okpala, said the initiative demonstrated how targeted financing could simultaneously drive industrial growth and environmental sustainability.
She explained that $550,000 of the total fund was channelled through BOI for on-lending to eligible industries, enabling businesses to adopt modern, energy-efficient equipment and cleaner production methods. The intervention included solutions such as renewable energy systems, recycling infrastructure, and resource-efficient production processes.
“The financing has enabled companies to reduce energy consumption, cut operational costs and improve productivity, while also enhancing their environmental performance,” Uz’Okpala said.
Enterprises in manufacturing, agro-processing, hospitality, and logistics benefited from the programme, with small businesses receiving grants and financing support for equipment upgrades.
UNIDO National Programme Officer, Dr Reuben Bamidele, described the initiative as a key component of Nigeria’s Programme for Country Partnership framework, noting its strong potential for scaling up cleaner production practices nationwide. He emphasized that sustained collaboration among government agencies, financial institutions, and development partners would be critical to expanding the programme’s impact.
Director-General of the Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadir, who chairs the project’s investment committee, highlighted the role of risk-sharing mechanisms in unlocking private sector participation. The adoption of a first-loss guarantee structure, he said, 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,” Ajayi-Kadir added.
