The Bank of Industry (BOI) announced on February 9 that it has secured regulatory approval from the Central Bank of Nigeria to operate a Non-Interest Banking (NIB) Window.
The announcement, however, has since sparked a wave of reactions from Nigerians.
According to BOI, the NIB window will expand access to ethical, asset-backed, interest-free financing designed to support inclusive and sustainable industrial development across Nigeria.
In its official statement, the bank said, “The Bank of Industry has received regulatory approval from the Central Bank of Nigeria to operate a Non-Interest Banking (NIB) Window.
“This milestone expands access to ethical, asset-backed, interest-free financing designed to support inclusive and sustainable industrial development across Nigeria.”
According to the CBN, non-interest banking is principally based on the principle of profit and loss sharing and the prohibition of interest (receipt and payment).
Pinnacle Daily reported that the Managing Director of BoI, Olasupo Olusi, described the approval as a turning point for the institution.
“This licence marks a pivotal moment in the bank’s journey to transform Nigeria’s industrial sector. It allows us to reach a new category of borrowers who previously could not access our services,” Olusi said.
But beyond the official optimism, the announcement has triggered a wave of reactions from Nigerians, ranging from enthusiastic commendations to probing questions and pointed concerns.
Questions Nigerians are asking
Among the first reactions are practical questions about access and implementation, some Nigerians commented on the BOI X post.
Some are curious whether SMEs registered in the country will be able to open a business account with BOI or CBN-affiliated banks online, with no hassle at all, as easily as they are created on a Kuda MFB or Moniepiint account.
Others are seeking clarity on eligibility and structure, enquiring whether it will cover start-up businesses.
There are also specific requests tied to youth empowerment and flexible repayment.
The question is whether the window would offer a non-interest loan for a recent NYSC graduate to support business or skill acquisition, with the payment plan starting six months after the loan has been received.
Accessibility also remains central to many of the questions being raised.
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They believe that the loan should be more easily accessible to all interested people without unattainable collateral.
Some simply want direction and clarity on whom to talk to.
Others are asking for simplicity in the process, requesting that the method of application be simple.
Beyond the announcement itself, there is also broader curiosity about how Nigerians can benefit from the window.
Commendations for interest-free financing
Not all reactions were sceptical, as some Nigerians believe the approval represents a welcome development in the country’s financial landscape.
Some see it as a breakthrough for businesses previously constrained by traditional lending models.
By securing this NIB window, the BOI is essentially opening a “green lane” for businesses that have been locked out, either by religious principles or by the sheer mathematical weight of traditional interest rates.
Concerns over transparency, inclusion and delivery
Alongside commendations and questions, there are also pointed concerns.
Some expressed doubts about the institution’s visibility and impact, asserting that the BOI only exists on paper and social posts.
Others urged the bank to address pending obligations before introducing new initiatives, hinting at the federal government’s loan intervention.
Added to the concerns are issues of transparency in disbursement, as well as infrastructural issues.
Experts’ view on what NIB offers
In a chat with Pinnacle Daily, the Chief Executive Officer of De-SME Facilitators Limited, Anthony Chinwe, said it is a wonderful development.
“I think it is a wonderful development for SMEs in terms of access to finance, because it is all about the sharing of profit.
“It also does not involve having to bring forward collateral. You know, everything we base on the future capital, I mean future cash flow of the business,” Chinwe said.
He believes it will be a win-win situation for businesses and the BOI.
He stressed that it will broaden the lines of funding available to SMEs.
According to Chinwe, who is an ex-banker, from a counterpart fund perspective, when a government partners with BOI to support targeted SMEs, both parties contribute to a dedicated counterpart funding pool, separate from existing funds.
He added that these additional resources can be deployed without crowding out the bank’s regular lending programmes.
Also, a Banking Research Analyst at Vetiva Capital, Oluwayemisi Sunmola, explained that the window will mean more development finance for businesses.
He said this will be the case without the conventional interest, especially for asset purchases and equipment tied to real economic activity.
“What this basically signals is some sort of ethical financing being more institutionalised. So, we won’t only see them in private Islamic banks but mainly in development financing institutions,” Sunmola said on News Central programme on Tuesday, February 10.
He described non-interest banking as financing without charging interest on the time value of money but on the profit earned from it.
He maintained that rather than BOI lending cash and charging interest, the bank will now finance MSMEs as well as other businesses and entrepreneurs without charging interest.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
