BoI to Unlock $20m After Historic Adaptation Fund’s Accreditation

James Emejo in Abuja

The Bank of Industry has been accredited by the board of Adaptation Fund to act as implementation entity for the latter’s climate related interventions in the country.

The fund, in its approval notice stated that it resolved to accredit the bank as a National Implementing Entity (NIE) of the intervention for five years.

Managing Director/Chief Executive, BoI, Dr. Olasupo Olusi, said the certification will enable the bank to access about $10 million for a single climate adaptation project and a total of $20 million for nationwide interventions.

The development was contained in a statement issued yesterday by Divisional Head, Public Relations, BoI, Theodora Amechi.

The recognition effectively positions the development finance bank to recommend and attract funding to finance projects in communities affected by adverse climate conditions.

Climate change presents critical and multifaceted challenges for Nigeria, impacting many sectors and exacerbating existing vulnerabilities, the statement noted.

It said increased temperatures, erratic rainfall patterns, and rising sea levels are leading to more frequent and extreme weather events, such as floods, droughts, and heatwaves, which affect agriculture, water resources, biodiversity, and human health.

Climate-related challenges disproportionately affect the poorest Nigerians and risk derailing progress toward the Sustainable Development Goals (SDGs).

However, Olusi has positioned the financial institution as a global development partner in climate finance, becoming the first Nigerian implementing entity ever certified by the fund.

Essentially, the Adaptation Fund was established under the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC) with the World Bank serving as Trustee.

The fund finances projects and programmes that help vulnerable communities in developing countries adapt to climate change.

The Initiatives for funding are based on country needs, views and priorities.

Since 2010, the fund has committed about $1.25 billion for climate change adaptation and resilience projects and programmes, including 183 concrete, localised projects in the most vulnerable communities of developing countries around the world with about 45.8 million total beneficiaries, the statement added.

Nonetheless, BoI further reaffirmed its commitment to driving industrial growth and inclusive economic development.

The bank was established in 1959 as the Investment Company of Nigeria (ICON) and reconstituted as Nigerian Industrial Development Bank (NIDB) under World Bank guidance in 1964.

It assumed its current form in 2001 following the merger with Nigerian Bank for Commerce and Industry (NBCI), and the National Economic Reconstruction Fund (NERFUND).

BoI’s primary mandate is to provide financial assistance for the establishment and expansion of large, medium, small-scale, and micro projects.