Nigeria - Domestic-oriented SME Financing Program

The intervention is for a Domestic-oriented SME Financing Program in Nigeria. The Program supports Nigerian government efforts to modernize and diversify the country’s production base and operationalize the recently approved National Policy on MSMEs. It supplies multi-sector financing to domestic-oriented SMEs in Nigeria to spur job creation in productive sectors to support the country’s efforts to diversify its economy away from oil and gas. The funds for the Program will be channeled through Bank of Industry Limited (BOI) by way of a multi-tranche sovereign guaranteed line of credit (LoC), subject to performance milestones. An integral component of the Program will be a TA package of up to USD 2.7 million out of the proceeds of the LoC for capacity building at BOI as well as at client SMEs. This intervention would complement the FGN program to support SMEs. The TA will improve BOI’s institutional capacity and contribute to enhance SMEs’ bankability.