Investor confidence in Nigeria’s domestic capital market reached a milestone as the Bank of Industry (BOI) wrapped up its inaugural Series 1 Fixed Rate Bond. Issued under its $1 billion Multi-Currency Instruments Programme through BOI Financing SPV Plc, the initial N250 billion target was oversubscribed in five business days.

This domestic capital raise marks a shift for Nigeria’s premier development finance institution. Historically, BOI relied on international funding channels to power local development. However, tapping into resident institutional savings proves that domestic financial markets hold deep liquidity to finance enterprise growth.

Strategic Capital Deployment for Industrial Growth

According to official updates reported by Nairametrics, the landmark transaction attracted a diverse network of institutional backers. Pension Fund Administrators, commercial banks, development institutions, and corporate entities submitted bids.

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Major institutional anchors strengthened the book-building process, including:

• The Nigeria Sovereign Investment Authority (NSIA)
• The International Finance Corporation (IFC)

The BOI Series 1 bond issuance features a 5-year fixed-rate structure priced between 17.35% and 17.50%. It includes a 2-year principal moratorium followed by amortising repayments. Official transaction details from the Bank of Industry confirm that Chapel Hill Denham led the issuance as the primary issuing house alongside Quest Merchant Bank. Furthermore, credit rating agencies Agusto & Co. and Intelligence Africa assigned AAA ratings to the offering.

Dr. Olasupo Olusi, Managing Director and CEO of BOI, highlighted that this capital influx directly supports local manufacturing, technology, agriculture, renewable energy, and job creation.

“The strength of the investor response is a vote of confidence not only in BOI, but also in the capacity of Nigeria’s domestic capital market to mobilise long-term capital for productive investment.” — Dr. Olasupo Olusi, MD/CEO, Bank of Industry

Leadership Backstory and Economic Framework

The driving force behind this financial milestone stems from leadership changes and policy adjustments. Dr. Olasupo Olusi assumed leadership at the Bank of Industry following his appointment by President Bola Ahmed Tinubu in October 2023. An experienced World Bank economist, Dr. Olusi brought structured development finance experience to streamline BOI’s operations.

Under his leadership, BOI expanded its loan portfolio significantly. Official records from Punch Newspapers report that BOI disbursed over N1.27 trillion between 2023 and 2025 across more than one million Nigerian enterprises.

Financial Performance Summary (2021–2025):
• Gross Earnings Growth (CAGR): 36%
• 2025 Interest Income: N884 billion (up 64% year-on-year from N538 billion)
• Capital Adequacy Ratio: 39% (Regulatory minimum: 10%)
• Non-Performing Loan (NPL) Ratio: 1.7% (CBN threshold: 5.0%)

Dr. Olusi commended executive support from the presidency, noting that a N100 billion blended fund framework approved by President Tinubu helped lower borrowing costs for manufacturers. Additionally, tax-exempt incentives on the bond further boosted investor participation.

Expanding Real Sector Funding

The success of the BOI Series 1 bond issuance demonstrates that long-term, patient capital can be sourced locally. By channelling domestic savings into priority economic sectors, the Bank of Industry continues to strengthen industrial capacity, reduce import dependency, and expand employment opportunities across Nigeria.