L–R: Olufunlola Salami, Company Secretary, Bank of Industry (BoI); Shekarau Omar, Executive Director, Large Enterprises, BoI; Olusegun Banwo, Executive Vice-President, Renaissance Africa Energy Company Limited; and Tony Attah, Managing Director/Chief Executive Officer, Renaissance Africa Energy Company Limited, at the signing of the Memorandum of Understanding (MoU) for the Renaissance Vendor Financing Scheme in Lagos.
The Bank of Industry (BoI) has been selected as a partner bank under the relaunched Renaissance Vendor Financing Scheme (RVFS), with a subscribed portfolio of US$4.1 billion and ₦435 billion to improve access to financing for indigenous contractors and vendors in Nigeria’s oil and gas sector.
The partnership will enable BoI to deploy its development-financing expertise and advisory services to support eligible Nigerian businesses executing contracts for Renaissance Africa Energy Company Limited. The scheme is designed to ease funding constraints affecting project mobilisation, equipment procurement, payroll and other contract-related obligations.
The refreshed scheme was formalised through a Memorandum of Understanding (MoU) signing ceremony in Lagos involving Renaissance and 13 financial institutions. BoI’s inclusion, alongside African Export-Import Bank (Afreximbank) and The Infrastructure Bank, expands the framework to incorporate development-focused financing institutions.
Speaking on the partnership, Shekarau Omar, Executive Director, Large Enterprises, BoI, said: “BoI’s participation reflects our commitment to improving access to development finance and strengthening Nigerian enterprises in strategic sectors. By combining Renaissance’s contract-backed framework with our financing expertise, we aim to help eligible indigenous contractors mobilise resources, invest in equipment, execute projects and grow their businesses. This partnership also offers an opportunity to deepen local content, create jobs and support sustainable industrial development.”
Under the arrangement, BoI will provide financing through Contract Finance Facilities, Invoice Discounting Facilities, and eligible local and international purchase orders. Its responsibilities will include credit assessment, disbursement, facility servicing and recovery, as well as holding security over financed instruments, subject to applicable requirements.
Financing will be available to qualified vendors against valid Renaissance contracts, supported by contract-verification and payment-control mechanisms designed to strengthen transaction visibility and repayment management.
The scheme builds on a vendor-financing platform established during the Shell era. Programme information indicates that approximately US$1.3 billion has historically been disbursed and liquidated, with no unpaid facilities and a zero non-performing loan position.
The initiative aligns with the objectives of the Nigerian Oil and Gas Industry Content Development Act 2010 by supporting indigenous businesses’ participation and capacity development across the oil and gas value chain.
The programme’s potential employment impact is estimated at 7,500 jobs, comprising 3,000 direct and 4,500 indirect jobs. These are projected outcomes dependent on financing uptake, project execution, and business expansion.
Through the partnership, BoI will work with Renaissance and other scheme participants to improve access to capital, strengthen local contractors’ capacity, and contribute to Nigeria’s industrial growth.