The Bank of Industry (BoI) in partnership with the French Development Agency (AFD) has signed a €2.5 million grant agreement to tackle climate change issues in Nigeria.

The grant agreement made available by Green Climate Fund was signed on Wednesday at the French Embassy in Abuja, by Emmanuelle Blatman, French Ambassador to Nigeria, and Olukayode Pitan, BoI executive officer.

The French Embassy said the agreement would strengthen the partnership between both countries in the fight against climate change.

“Strengthening the Nigeria, France partnership in the fight against climate change in Nigeria with the signing of a €2.5m grant agreement from the Green Climate Fund (GCF), between Bank of Industry (BoI) and French Development Agency (AFD),” a tweet by the embassy reads.

Xavier Muron, country director for AFD, said the agency recognised the BoI’s commitment to adopt sustainability in its business practices to drive strategic social, economic, and environmental impact in the communities it serves.

Muron said the agreement aimed to build the capacity of BoI and provide necessary tools for the development of bankable climate projects.

“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 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,” he said during the grant agreement ceremony.

“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 assistance mandate.”

Responding, Pitan said the grant would enable the scaling of current efforts by BoI toward climate change mitigation and adaptation.

“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,” he said.

“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 toward climate change mitigation and adaptation. This will contribute significantly to reducing Nigeria’s carbon footprint.

“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.

“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.”