BoI, AFD Sign Agreement for Development of Bankable Climate Projects

In recognition of the Bank of Industry’s (BOI)’s commitment to adopting sustainability in its business practices and driving strategic socioeconomic and environmental impact in its host community, the French Development Agency (AFD) has signed a €2.5 million grant agreement with BoI to tackle climate change issues in Nigeria.

While signing the agreement, Xavier Muron, Country Director for AFD disclosed that the agreement was aimed at building the capacity of BoI and providing necessary tools for the development of bankable climate projects.

“Therefore, the grant agreement sets up a technical assistance scheme for BoI. The objective is to build the capacity of BoI, thereby providing tools for effective identification and development of eligible bankable climate-related projects as well as improving the readiness of the bank’s customers to implement green practices in their operations.

“In this context, the implementation of the environment and social governance framework provided for in the credit agreement will be an important part of the technical assistance mandate.”

In appreciation, Olukayode Pitan, BoI executive officer, stated that the grant would enable the scaling of current efforts by BoI towards climate change mitigation and adaptation.

Pitan remarked that given the serious threat that climate change poses to equitable and sustainable development in Nigeria, that it would be critical for BoI to take the lead in mobilizing capital for green and sustainable investment.

“In addition to the line of credit, the €2.5m technical assistance funds will support capacity building for BoI and its customers, thereby enabling the scaling of current efforts by BoI towards climate change mitigation and adaptation. This will contribute significantly to reducing Nigeria’s carbon footprint.

“With specific reference to gender equality, the technical assistance will support BoI in the development and implementation of professional gender equality and gender lens investing policies.”

In addition, the BoI Executive Officer noted that they welcome the partnership with AFD and Green Climate Fund (GCF) as they would continue to implement President Muhammad Buhari’s policies with respect to climate finance, adding that they commend the professional approach adopted by the partners in delivering the technical assistance package.

The grant agreement made available by Green Climate Fund was signed yesterday, at the French Embassy in Abuja, by Emmanuelle Blatman, French Ambassador to Nigeria and Pitan, BoI executive officer.