To encourage the use of clean energy solutions, the Federal Government intends to establish an on-lending funding program through the Bank of Industry.
This was revealed on Thursday during the AADFI-ADFIAP Joint CEO Forum being held in Abuja by Dr. Olasupo Olusi, the MD/CEO of BoI.
Olusi pointed out the necessity of making sure institutions are strong enough to draw in reasonably priced long-term funding so that green initiatives may be carried out.
He added:
“At BoI, we are very active in resourcing climate-friendly funds, including the recent credit line of 100 million Euros secured from the French Development Agency (AFD) for the expansion of green finance in Nigeria.
“The bank is also currently implementing an on-lending financing scheme through local financial institutions to support customers interested in adopting clean energy solutions. We will continue to seek funding partners to complement our climate change agenda.”
The possibility for mitigating and adapting to climate change to become the main driver of economic growth is widely acknowledged, and development finance institutions (DFIs) have the potential to be the catalysts for this transformation.
During his introductory speech, Olusi emphasized the need of development finance institutions while pointing out the serious consequences of climate change.
He continued by saying,
“We live in a world where climatic events are claiming lives; disrupting food systems; limiting infrastructure; and generally slowing down economic growth and development across member nations; while accelerating poverty, to the detriment of mankind.
“Given the strategic role DFIs play in mobilising resources for national development, we are integral actors in the global response to the climate challenge.
“As Nigeria’s leading DFI, one of the primary drivers of BoI’s developmental strategy is to accelerate Nigeria’s development through supporting environmentally friendly and sustainable projects across the key sectors of the economy.”
He also revealed that there is a sizable investment in renewable energy projects in the BoI’s project portfolio. By 2030, the banks hope to contribute to the continental goal of producing 27% of power from renewable sources.
He stated the amount that has been raised over the last five years:
“BOI has worked with our partners to raise over $5 billion from several international financial institutions in the last five years. We intend to leverage our extensive partnership to raise the resources required for building a climate-smart Nigeria, in line with our President’s vision.”
AADFIAP refers for the Association of Development Financing Institutions in Asia & the Pacific, whereas AADFI stands for the Association of African Development Finance Institutions.
The meeting brings together development finance institutions from 33 nations on four continents: Africa, Asia, and the Pacific.
