Nigeria’s Bank of Industry Targets ₦1.85 Trillion in Lending. Small Businesses Want to Know Who Can Borrow

A small manufacturer in Nigeria might have an order worth millions of naira and still struggle to deliver it. The problem could be a machine that needs replacing, a shortage of raw materials or a lack of cash to pay workers while waiting for customers to settle their invoices. Borrowing can help, but getting a loan is not always straightforward for a small business.

Nigeria’s Bank of Industry (BOI) wants to lend ₦1.85 trillion annually by 2027 and reach 24,000 micro, small and medium-sized enterprises (MSMEs). The targets were outlined by managing director Olasupo Olusi during a meeting with media executives in Lagos on 22 October.

BOI reported disbursing ₦625 billion in 2025 to 12,501 businesses. The bank also reported creating or sustaining 1.6 million jobs through its financing activities. More than 31% of its funding went to MSMEs, while about ₦120 billion supported women-owned businesses. The new target is ambitious. But for a business owner looking for money to expand, the announcement leaves practical questions: which businesses qualify, what can the money pay for, and how difficult will it be to secure?

The money is meant for businesses that produce

BOI's focus includes manufacturing, agriculture, healthcare production and technology. These sectors often require investment before a business can increase its sales.

Take a small company making packaged food. It may have enough customers to justify buying a larger machine, but not enough cash to pay for it. A loan could help the company increase production and fulfil more orders. The same applies to a manufacturer buying equipment or an agricultural business investing in processing and storage. However, an owner needs to show more than a desire to expand. The bank will want to assess the business and the proposed investment against the conditions of the financing product. That is where preparation matters.

What does a business need before applying?

The first thing to establish is the amount required and what it will buy. If the money is for equipment, the owner should know the purchase price and how the machine will affect production costs and sales. If it is for working capital, the business should be able to explain why it needs the cash and how the money will be recovered through trading.

Financial records are equally important. A business that cannot show its sales, expenses and outstanding debts may struggle to demonstrate that it can manage additional borrowing. Owners should prepare their registration documents, relevant bank statements and financial information, along with a business plan where required. They should also confirm the specific product's eligibility rules, interest rate, repayment period and security requirements with BOI.

The requirements are not necessarily the same for every facility, so businesses should check the current conditions before submitting an application.

More sales do not always mean more cash

One risk for a growing business is borrowing against sales that have not yet turned into cash. A manufacturer could receive a large order from a retailer but have to buy materials, pay workers and cover transport before receiving payment. If the loan instalment falls due before the customer pays, the business could find itself short of money. This is why the cost of borrowing needs to be considered alongside the expected return.

An owner should calculate the additional revenue an investment could generate, deduct the extra operating costs and check whether the remaining cash will cover repayments. The calculation should also account for delays in customer payments or a weaker-than-expected sales month. A loan that looks affordable on paper can become difficult to manage when the money comes in later than expected.

BOI wants to reach more businesses

The bank has set a target of allocating 35% of its funding to MSMEs. It also plans to direct at least 15% of its funding to women-owned businesses and 20% of MSME financing to youth led enterprises. These targets signal an intention to reach different groups of entrepreneurs, but they do not guarantee that an applicant will receive funding.

Business owners will need clear information about the application process, the documents required and the terms attached to each loan. They will also want to know how long approval takes, particularly when financing is tied to an order or a time-sensitive investment. BOI provides information about its lending products and business advisory services through its website. Entrepreneurs can use these resources to identify a suitable programme and prepare before approaching the bank.

The question is who gets funded

Moving from ₦625 billion in reported lending in 2025 to a target of ₦1.85 trillion annually by 2027 would represent a substantial increase in BOI's lending ambitions. For smaller companies, the headline figure matters less than the terms they can actually access. A manufacturer needs to know whether it can finance the equipment it needs. A food processor needs to understand whether repayments will leave enough money to keep buying stock. A growing business needs to know whether the loan will help it take on more work without creating a cash flow problem. BOI has set a target of reaching 24,000 MSMEs. Business owners will be watching to see how that translates into approved loans, equipment purchases, increased production and businesses able to sustain the repayments.