BOI, French agency sign $30m deal to finance Nigerian creative businesses

The Bank of Industry (BOI) has signed a $30 million financing agreement with France’s development agency to expand access to funding for Nigerian businesses in music, film, fashion, design and other creative industries.

The agreement with Agence Française de Développement (AFD) is expected to help creative entrepreneurs overcome one of the sector’s major obstacles: access to affordable finance to grow their businesses, acquire equipment and expand production.

The deal was signed in Abuja by BOI Managing Director, Dr Olasupo Olusi, and AFD Group Chief Executive Officer, Christophe Lecourtier.

Olusi said the creative economy offered significant opportunities for job creation, particularly among young Nigerians, while helping the country diversify its sources of economic growth.

He said the partnership would give greater attention to businesses led by women and young people, including operators who have struggled to secure funding through conventional lending channels.

Access to affordable finance has remained a challenge for many creative businesses, particularly smaller operators who need capital to move beyond small-scale production and reach wider markets.

The facility is designed to support businesses across music, film and audiovisual production, fashion, textiles, design, video games and visual arts.

At least 90 per cent of the financing will be directed towards micro, small and medium-sized enterprises (MSMEs), according to details of the agreement reported by THISDAY. The arrangement also includes a €500,000 technical assistance programme to strengthen BOI’s capacity to finance creative businesses.

The technical support is expected to help the bank train relevant staff and develop financial products suited to the needs of creative enterprises, whose funding requirements may differ from those of businesses in conventional industrial sectors.

Olusi said the agreement aligned with President Bola Tinubu’s economic agenda and the Federal Government’s ambition to grow Nigeria’s economy to $1 trillion.

He described the creative sector as an important source of employment and economic diversification, adding that the financing would help bridge gaps in the availability and cost of credit.

Lecourtier said BOI remained AFD’s leading development banking partner in Nigeria. He also pointed to the institutions’ previous collaboration on climate-related financing worth more than €100 million under the Transforming Financial Systems for Climate programme.

The AFD chief executive noted the growing international interest in Nigerian music and films, describing the country’s creative industries as an area with significant potential for further development.

The new agreement is also linked to efforts to expand Nigeria’s cultural and creative industries under the Federal Government’s Destination 2030 ambition for the sector.

The facility is expected to widen access to capital, support expansion and strengthen the capacity of creative enterprises to generate employment.