Bank of Industry Expands Support for Real Economy with New Non-Interest License
CBN Grants Bank of Industry Approval for Non-Interest Banking Window
The Bank of Industry (BoI) has reached a pivotal regulatory milestone following the Central Bank of Nigeria's (CBN) approval for the institution to operate a Non-Interest Banking (NIB) window. This strategic expansion is designed to broaden the bank's reach by providing ethical, interest-free financial products to underserved and high-impact sectors of the Nigerian economy.
Managing Director and Chief Executive Officer of the BoI, Dr. Olasupo Olusi, announced the development in a statement released in Lagos on Sunday. He characterized the approval as a significant advancement in the bank’s long-term development agenda, positioning the BoI to provide more inclusive financial solutions that align with the specific needs of Nigeria’s diverse business landscape.
Expanding Access to Ethical and Inclusive Funding
The introduction of the Non-Interest Banking window allows the BoI to cater to a new demographic of entrepreneurs and business owners who have historically avoided conventional, interest-based financing due to ethical or religious considerations. By offering Sharia-compliant and ethical financial instruments, the bank aims to bridge the gap in credit access for faith-sensitive enterprises and other ethically motivated businesses.
Under this new framework, the BoI is authorized to finance critical business needs including the acquisition of assets and raw materials using approved non-interest banking products. This shift is expected to mobilize new sources of ethical funding, further supporting the "real economy" and driving sustainable industrial growth across the federation.
Strategic Impact on MSMEs and the Real Sector
Dr. Olusi emphasized that the NIB window will specifically target Micro, Small, and Medium Enterprises (MSMEs), which remain the backbone of Nigeria’s economic productivity. According to the Managing Director, the CBN’s approval reflects a vote of confidence in the BoI’s commitment to responsible and development-oriented financing.
"This will allow BoI to scale its operations, introduce innovative financing solutions, and deepen support for MSMEs, as well as other underserved segments critical to Nigeria's sustainable economic growth," Olusi stated. He further noted that the initiative aligns with the bank's core objective of fostering inclusive industrial development while adhering to social and developmental goals.
Regulatory and Economic Outlook
The move by the BoI follows a growing trend in the Nigerian financial sector toward non-interest finance, as the country seeks to diversify its funding mechanisms to attract both domestic and international ethical investors. By integrating these products into its existing portfolio, the BoI is better equipped to support the Federal Government’s industrialization agenda and improve the ease of doing business for a broader range of stakeholders.
Financial analysts suggest that this development will likely increase the volume of credit available to the manufacturing and agricultural sectors, as businesses that were previously sidelined by high interest rates or ethical constraints now have a viable alternative for capital formation.
The Bank of Industry’s transition into the non-interest banking space marks a proactive response to the evolving needs of the Nigerian marketplace. By removing the barrier of interest-based lending for specific segments, the BoI is set to enhance financial inclusion and stimulate economic activity in sectors that are vital for long-term national prosperity. Moving forward, the bank is expected to roll out specific product guidelines to facilitate the immediate commencement of operations under this new window.
