BOI Opens Interest-Free Financing Window to Deepen Industrial Inclusion

In a landmark development for Nigeria’s industrial and financial sectors, the Bank of Industry (BOI) has received regulatory approval from the Central Bank of Nigeria (CBN) to operate a Non-Interest Banking (NIB) Window. The initiative is designed to provide ethical, asset-backed, interest-free financing aimed at expanding access to capital for underserved businesses and promoting sustainable industrial growth across the country.

The approval marks a significant milestone in BOI’s mission to transform Nigeria’s industrial landscape, particularly in sectors where conventional borrowing is often prohibitive due to high interest rates. The NIB Window will leverage innovative risk-sharing structures to ensure financing is inclusive, equitable, and aligned with global ethical finance practices.

Expert Perspectives:

Economist Celestine Ukpong described the development as a “game-changer for Nigeria’s industrial economy.” Ukpong explained, “The introduction of a Non-Interest Banking Window by BOI addresses a critical gap in our financial system. Many small and medium-sized enterprises, especially in the manufacturing and agro-processing sectors, have historically been excluded due to the cost of borrowing. This initiative not only provides access to capital but does so in a way that encourages sustainable business practices and long-term growth.”

Peter Adebayo FCA, a leading financial analyst, highlighted the risk-sharing and asset-backed structure of the facility. He said, “BOI’s NIB Window is innovative because it shifts the focus from interest-based returns to productive investment. By sharing risks between the bank and entrepreneurs, it incentivizes both parties to ensure business success. This could significantly reduce defaults, improve project sustainability, and enhance investor confidence in Nigeria’s industrial sector.”

Observers note that the approval also aligns with broader trends in ethical and Islamic finance globally, where non-interest financial instruments are increasingly used to promote financial inclusion, infrastructure development, and SME expansion. In Nigeria, where funding gaps and high borrowing costs have long stifled industrial growth, this initiative could unlock new opportunities for businesses and communities previously left out of formal credit systems.

With the operational rollout of the NIB Window expected soon, BOI is set to publish detailed application guidelines. Stakeholders anticipate that this development will not only stimulate entrepreneurship and strengthen manufacturing capacity but also contribute to Nigeria’s long-term industrialisation strategy.
As Celestine Ukpong summarized, “This is a step toward an industrial financing ecosystem that balances profitability with social impact.” Peter Adebayo added, “The NIB Window is more than a financial product—it is a policy instrument that can drive inclusive growth and sustainable industrial development in Nigeria.”
The CBN’s approval underscores a shared vision for Nigeria’s economic future, one where inclusive, ethical financing becomes a core pillar of industrial expansion and national development.

The Bank of Industry has received CBN approval to operate a Non-Interest Banking Window, providing ethical, interest-free financing to boost inclusive industrial development in Nigeria. Experts highlight its potential to transform SME access to capital and strengthen sustainable growth.