The Bank of Industry (BOI) and the French Development Agency (AFD) have signed a grant agreement for €2.5 million from the Green Climate Fund (GCF) to advance their partnership in fighting climate change in Nigeria.
The Green Climate Fund is a fund established within the framework of the UNFCCC as an operating entity of the Financial Mechanism to assist developing countries in adaptation and mitigation practices to counter climate change
Since 2019, the French government has contributed more than €1.5 billion to the Green Climate Fund.
The signing ceremony took place at the French Embassy in Abuja, with the French Ambassador to Nigeria and ECOWAS serving as the primary sponsors.
BOI and AFD recognize the importance of incorporating climate finance into BOI’s strategy and operations, according to AFD.
“Therefore, the grant agreement sets up a technical assistance scheme for BoI.” The objective is to build the capacity of BoI, thereby providing tools for the effective identification and development of eligible bankable climate-related projects, as well as improving the readiness of the bank’s customers to implement green practices in their operations.
“In this context, the implementation of the environment and social governance framework provided for in the credit agreement will be an important part of the technical assistant’s mandate.”
“Given the serious threat that climate change poses to equitable and sustainable development in Nigeria, it is critical for us at BOI to take the lead in mobilizing capital for green and sustainable investment. In addition to the line of credit, the € 2.5m Technical Assistance funds will support capacity building for BOI and its customers, thereby enabling the scaling of current efforts by BOI towards climate change mitigation and adaptation. This will contribute significantly to reducing Nigeria’s carbon footprint.
“With specific reference to Gender Equality, the technical assistant will support BOI in the development and implementation of professional gender equality and gender lens investing policies,” said Mr. Olukayode Pitan, Managing Director/Chief Executive Officer, Bank of Industry, at the grant agreement signing ceremony.
“Bearing in mind the Paris Agreement, Mr. Xavier Muron, Country Director for AFD, recognized BoI’s commitment to embed sustainability in its business practices to drive strategic social, economic, and environmental impact in the communities the Bank serves.
“Mr. Pitan acknowledged the dedication of AFD, the GCF, and its strategic partners to ensure a smooth and efficient implementation of this deal.
According to Pitan, “BOI welcomes its partnership with the AFD and GCF as it continues to implement President Muhammadu Buhari’s policies with respect to climate finance.” We commend the professional approach adopted by these partners in delivering this technical assistance package.
We are confident it will enhance BOI and its customers’ capacity and readiness for climate finance. “We believe this is the beginning of a long and mutually beneficial relationship.”
“Meanwhile, Mr. Muron appreciated the strong relationship BoI and AFD have been building and looked forward to further supporting the BoI in its activities towards achieving the SDGs.”