The Bank of Industry (BoI) has received formal approval from the Central Bank of Nigeria (CBN) to operate a non-interest banking window, enabling the development lender to extend asset-backed and ethically compliant financing to businesses traditionally excluded from conventional credit markets.
The green light allows BoI to commence operations under the non-interest banking model, aligning with Islamic finance principles and other ethical frameworks that prohibit interest payments. Instead, financing under the scheme is structured around tangible assets and shared risk, offering a viable alternative for businesses seeking faith-sensitive or ethical funding.
Brandspur Banking News Desk reports that the initiative is expected to unlock new credit channels for micro, small, and medium-sized enterprises (MSMEs), manufacturers, and agribusinesses, promoting broader financial inclusion and diversifying funding sources for Nigeria’s real economy. Beneficiaries can now access financing for raw materials, equipment, and other asset-backed projects, creating opportunities for enterprises previously constrained by conventional banking limitations.
BoI Managing Director and Chief Executive Officer, Olasupo Olusi, described the licence as a milestone in the bank’s evolution. “This licence marks a pivotal moment in the bank’s journey of transforming Nigeria’s industrial sector. We can now reach a new category of borrowers who previously could not access formal funding,” Olusi said.
Nigeria hosts one of Africa’s largest non-interest finance markets, driven by sovereign sukuk issuances and a growing network of non-interest banks and fund managers. Rising demand from faith-based investors, ethical finance advocates, and proponents of asset-backed instruments underscores the potential for this new financing avenue to scale rapidly.
The BoI non-interest window will also support socially aligned financing, ensuring that funds are tied to productive activities rather than disbursed as cash, reinforcing the bank’s mandate as a development finance institution. By mobilising ethical capital, BoI aims to stimulate sustainable economic growth while creating new pathways for businesses that avoid interest-based loans.
Established in 1959 as the Investment Company of Nigeria and later reconstituted through mergers with the Nigerian Bank for Commerce and Industry and the National Economic Reconstruction Fund, BoI has long played a central role in Nigeria’s industrial development. The introduction of a non-interest banking window strengthens its toolkit for promoting inclusive, ethical, and development-oriented financing.
The initiative positions BoI to better support job creation, industrial expansion, and private-sector growth while tapping into the growing appetite for non-interest financial products. This strategic move reflects both the regulator’s confidence in the bank and Nigeria’s evolving financial landscape.
