CBN Grants New Licence to BOI for Non-Interest Banking in Nigeria amid Recapitalisation Exercise
- Bank of Industry has received an approval from CBN to launch Non-Interest Banking operations
- The new window enhances ethical financing for underserved businesses, supporting financial inclusion
- BOI aims to boost MSMEs and economic resilience amid rising interest rates hampering manufacturing in Nigeria
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Bank of Industry, BOI, has secured regulatory approval from the Central Bank of Nigeria, CBN, to operate a Non-Interest Banking, NIB, window, marking a significant expansion of its mandate at a time when Nigeria’s banking sector is undergoing a sweeping recapitalisation exercise.
The approval positions BOI to deepen ethical and inclusive financing across the economy, while strengthening its role as Nigeria’s leading development finance institution.
Source: Twitter
In a statement signed by its divisional head, Public Relations, Theodora Amechi, the bank confirmed that the licence authorises it to commence non-interest banking operations, allowing it to mobilise alternative funding and serve business segments previously excluded from conventional interest-based lending.
BOI: Expanding ethical and inclusive financing
Under the new framework, BOI will be able to finance assets, equipment and raw materials using approved non-interest banking products that comply with ethical finance principles.
The move offers a viable alternative to traditional lending for businesses that avoid interest-based loans for religious or ethical reasons, particularly within Nigeria’s large informal and faith-sensitive enterprise base.
Analysts say the approval underscores the CBN’s confidence in BOI’s governance structure, risk management standards and long-term development focus, especially as regulators tighten oversight across the financial system.
Boost for MSMEs and the real economy
The non-interest banking window is expected to enable BOI to scale its operations, introduce tailored financing products and deepen support for Micro, Small and Medium Enterprises, MSMEs, which remain central to job creation and industrial growth.
By widening its funding toolkit, the Bank is better positioned to channel long-term capital into manufacturing, agriculture, infrastructure and other productive sectors that drive economic resilience.
Industry observers note that the timing is strategic, as rising interest rates and tighter credit conditions have increased the cost of borrowing for businesses nationwide.
Olusi calls licence a turning point
Reacting to the approval, BOI’s Managing Director and Chief Executive Officer, Dr Olasupo Olusi, described the licence as a landmark moment in the institution’s evolution.
“This licence marks a pivotal moment in the Bank’s journey to transform Nigeria’s industrial sector,” Olusi said.
“With this approval, we can reach a new category of borrowers who, until now, could not be served by conventional financing.”
He added that the initiative aligns with BOI’s broader objective of supporting sustainable industrialisation while expanding financial inclusion.
Strengthening BOI’s development mandate
Established in 1959, the Bank of Industry remains Nigeria’s foremost development finance institution, with a mandate to provide financial assistance to large, medium, small and micro enterprises.
According to a report by Vanguard, the non-interest banking approval further reinforces BOI’s strategic position in promoting inclusive growth, ethical finance and long-term economic development, even as the broader banking sector adjusts to higher capital requirements and stricter regulatory expectations.
Source: Getty Images
Coming when the Nigerian banking sector is undergoing significant recapitalisation, experts say the new BOI licence will strengthen the bank's lending capabilities.
CBN grants national licence to finetechs
For BOI, the new licence is not just an expansion of services, but a signal of intent to lead Nigeria’s shift toward more diverse, resilient and value-aligned financing models.
The development comes as the apex bank expanded the operating licences of financial technology firms such as Opay, Moniepoint, and others.
CBN said the aim was to boost financial inclusion and reduce the number of unbanked populations in Nigeria.
The Nigerian banks licensed to operate abroad
Legit.ng earlier reported that Nigeria’s banking industry underwent its most ambitious overhaul in more than a decade after the Central Bank of Nigeria (CBN) enforced a sweeping recapitalisation programme aimed at strengthening financial stability and positioning the sector for long-term growth.
Under the policy, commercial banks with international banking licences must raise their minimum paid-up capital to N500 billion by March 31, 2026.
The new thresholds, announced in March 2024, marked a sharp departure from the existing capital structure.
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Source: Legit.ng
