Nigeria’s small business sector has received a major financial lifeline as the African Development Bank approved a $200 million funding package through the Bank of Industry to expand access to long-term credit for small and medium-sized enterprises.

The facility is designed to support businesses operating in key sectors such as agriculture, infrastructure, transportation, healthcare, pharmaceuticals, and green manufacturing—areas considered central to Nigeria’s industrialisation and economic diversification agenda.

According to the AfDB, the funding will provide “patient capital” to help SMEs, women-led enterprises, and youth-owned businesses overcome long-standing challenges in accessing affordable financing. A portion of the funds is also expected to support climate-friendly industrial projects and sustainable production systems.

Officials from the AfDB said the intervention aligns with efforts to strengthen Nigeria’s private sector and accelerate job creation by channeling resources into productive industries that can drive long-term growth.

The Bank of Industry welcomed the approval, describing it as a vote of confidence in its financing model and its partnership with the African development lender. The institution noted that it follows an earlier facility that was successfully repaid, reinforcing credibility in its development financing operations.

Development analysts say the package could ease credit constraints that have limited SME expansion in Nigeria, where small businesses account for a large share of employment but continue to struggle with high interest rates and limited access to long-term loans.

Part of the package also includes technical assistance funding aimed at improving business governance, capacity building, and compliance standards, while a gender-focused component is expected to expand financing opportunities for women entrepreneurs.

Overall, the initiative is expected to strengthen local production capacity, reduce import dependence, and support Nigeria’s broader economic transformation goals.