The Bank of Industry (BoI) has signed a £100 million agreement with the French Development Agency (AfD) to expand green finance in the country, giving the fight against climate change in the country a boost.
The 10-year facility is priced at 2.47 per cent per annum with a four-year moratorium by mixing various concessional resources.
Managing Director, BoI, Olukayode Pitan, disclosed this at the signing ceremony in Lagos.
Pitan said, AFD approved the transaction as part of its Transforming Financial Systems for Climate (TFSC) Programme with the Green Climate Fund (GCF).
He added that TFSC was a $650 million programme developed in 17 countries for 100 per cent climate investments projects.
He pledged that the credit facility would focus on financing investments that contributed to climate change mitigation or adaptation.
Mr Xavier Muron, Country Director of AFD, stated that studies have shown that climate change will cost Nigeria $400 billion, which is between 6% and 13% of the country’s GDP (GDP).
He added that this new credit line was a key milestone towards the achievement of the Paris Agreement and was timely since Nigeria looked forward to launching its Energy Transition Plan.
Muron said the main objective of the partnership was to spur the country’s financing systems to focus more on climate aspect and the investment needs to fight the adverse impact of climate change.
He added that the financing package would also include a £2.5 million grant dedicated to a technical assistance programme aimed at mainstreaming climate finance within BoI’s strategy and operations.
