The Bank of Industry (BoI) has received approval from the Central Bank of Nigeria (CBN) to operate a non-interest banking window, a move aimed at expanding access to ethical and inclusive financing for businesses across the country.
The regulatory nod allows the development finance institution to commence non-interest banking operations, enabling it to mobilise alternative funding and provide asset-backed financing to businesses that avoid conventional interest-based loans. The initiative is expected to strengthen support for micro, small and medium enterprises (MSMEs) and other underserved segments critical to Nigeria’s economic growth.
Announcing the development, BoI’s Managing Director and Chief Executive Officer, Dr. Olasupo Olusi, described the approval as a major milestone for the institution.
“This licence marks a pivotal moment in the bank’s journey of transforming Nigeria’s industrial sector. With this licence we can reach a new category of borrowers who before now could not be served.”
According to the bank, the new window will enable customers to finance assets and raw materials using approved non-interest banking products, while aligning its operations with social and developmental objectives. The approval also reflects the CBN’s confidence in the bank’s commitment to responsible and sustainable financing.
BoI noted that the initiative is designed to expand access to ethical funding, particularly for businesses that have traditionally avoided interest-based facilities for religious or value-based reasons. The platform is expected to create opportunities for “ethically motivated and faith-sensitive enterprises” and help them participate more confidently in the formal financial system.
Non-interest banking, which complies with Islamic finance principles and other ethical frameworks, prohibits interest payments and instead relies on structures tied to tangible assets and risk-sharing arrangements. The move aligns with broader efforts to deepen financial inclusion and diversify funding sources for the real sector amid tight credit conditions.
BoI added that the new window will allow the institution to scale operations, introduce innovative financing solutions, and deepen its support for productive sectors such as manufacturing and agribusiness, reinforcing its mandate to drive inclusive industrial development.
