Yemi Olakitan
In order to strengthen their collaboration in Nigeria to combat climate change, the Bank of Industry (BOI) and the French Development Agency (AFD) have signed a grant agreement for €2.5 million, which was authorised by the Green Climate Fund (GCF).
Since 2019, France has contributed almost €1.5 billion to the Green Climate Fund, and on August 23, 2022, BOI and AFD inked an agreement for a €100 million credit line to support the growth of green finance in Nigeria.
This was accepted as part of the $650 million Transforming Financial Systems for Climate (TFSC) Programme with the Green Climate Fund (GCF), a programme created in 17 countries for 100% climate investment projects.
The TFSC Programme focuses on funding investments that aid in climate change adaptation or mitigation, particularly initiatives including renewable energy, low-carbon energy production, climate-smart agricultural practices, and clean urban transportation.
The grant agreement establishes a technical assistance programme for BoI and was signed at a meeting at the French Embassy with the primary support of Emmanuelle Blatmann, the French Ambassador to Nigeria and ECOWAS.
The importance of integrating climate finance into BOI’s strategy and daily operations is acknowledged by both parties.
The goal is to increase BoI’s capabilities so that it can offer instruments for the efficient identification and development of qualified bankable climate-related projects as well as for enhancing consumer preparedness for the bank’s services.
Thus, a key component of the technical assistant’s responsibility is the implementation of the Environment and Social Governance framework specified in the credit agreement.
Olukayode Pitan, Managing Director/Chief Executive Officer, Bank of Industry, stated at the grant agreement signing ceremony, “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 light of the Paris Agreement, BoI’s dedication to integrating sustainability into its business operations to promote strategic social, economic, and environmental impact in the communities it serves was acknowledged by Xavier Muron, country director for AFD.