The Bank of Industry (BoI) on Sunday, February 8, obtained regulatory approval from the Central Bank of Nigeria (CBN) to operate a Non-Interest Banking (NIB) window, representing a significant expansion of its financing framework.
The approval was confirmed in a statement issued by the BoI Managing Director, Olasupo Olusi.
The development is expected to enhance the bank’s capacity to promote sustainable industrial growth while expanding access to finance for underserved and high-impact business segments across the country.
With the approval, BoI is now authorised to begin non-interest banking operations, offering ethical, asset-backed financing solutions that exclude interest and emphasise risk-sharing.
The initiative responds to rising demand for alternative financing models that promote inclusive growth and support broader social development goals.
Olusi described the approval as an important step in the bank’s growth and long-term strategic objectives, noting that it would strengthen BoI’s contribution to Nigeria’s industrialisation efforts through customised financial solutions.
Olusi said, “This development marks a significant milestone in the Bank of Industry’s growth and long-term development agenda.
“It positions the bank to further advance Nigeria’s sustainable and inclusive industrial development through tailored financial solutions for underserved and high-impact business segments.
“Under this framework, BoI will be able to finance assets and raw materials for customers using approved non-interest banking products.”
According to Olusi, the approval reflects the CBN’s confidence in BoI’s governance standards and its commitment to responsible financing practices.
He explained that the licence would enable the bank to expand its operations, introduce innovative financing products, deepen support for Micro, Small and Medium Enterprises (MSMEs), and extend funding to borrowers who previously could not access BoI facilities.
The BoI was restructured in 2001 from the former Nigerian Industrial Development Bank (NIDB) Limited, which was initially incorporated in 1959.
The institution was created to drive industrial development by providing long-term, low-interest funding and advisory services to businesses across the economy.
The restructuring aimed to establish a stronger development finance institution capable of supporting Nigeria’s industrial and economic transformation.
At inception, the bank’s authorised share capital stood at N50 billion.
Following its transformation into BoI Limited in 2001, the capital base was increased to N250 billion to strengthen its financial position and lending capacity.
In May 2023, the authorised share capital was further raised to N500 billion in line with Nigeria’s expanding economic needs and development priorities.
In 2024, Olusi disclosed that BoI had raised more than $5 billion from international capital markets over a seven-year period.
He said the funds were sourced through Eurobonds, loan syndications, and green finance instruments, highlighting the bank’s growing footprint in global development finance.
The launch of the non-interest banking window is expected to widen BoI’s range of financing options and attract new streams of ethical and faith-based capital.
The framework will enable the bank to finance assets and raw materials through approved non-interest banking products, providing an alternative to conventional interest-based loans.
The initiative is designed to support inclusive economic growth by mobilising ethical funding sources and expanding financing for the real sector.
It is also expected to strengthen BoI’s support for MSMEs and other underserved segments of the economy.
The approval underscores the CBN’s confidence in BoI’s governance framework and its focus on development-oriented financing.
By diversifying its funding models, the bank aims to better align its operations with social, developmental, and sustainability objectives.
In December 2025, the Bank of Industry disclosed that it disbursed over N1.27 trillion, both directly and indirectly, to enterprises across 14 economic sectors in 2024.
The bank said the interventions helped sustain existing jobs and create more than 900,000 new jobs nationwide during the year.
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