BoI rallies DBN, other DFIs for N1 trillion to aid industrial development
In a bid to fulfil its mandate and enhance the social impact of intervention in the real sector, the Bank of Industry (BoI) commenced discussion with the newly established Development Bank of Nigeria (DBN) and some foreign national as well as multilateral development finance institutions to raise N1 trillion to rev up its risk assets.
With rising financing needs in the real sector, the bank noted that it was already bracing up assiduously to the development challenges facing the country by embarking on a N1 trillion fund mobilisation drive to raise suitable financial and non financial resources from within and outside the country to rev up its risk assets to N1.2 trillion and create additional 5 million jobs by 2019.
The Bank’s Acting Managing Director, Waheed Olagunju, explained that the concessional capital being sought would also enable BOI part finance the industrial component of the Economic Recovery and Growth Plan (ERGP) as well as support ventures that would fast track Nigeria’s realisation of the Sustainable Development Goals (SDGs).
According to Olagunju, it is envisaged that the enterprises BoI plans to finance with the additional loanable funds would generate more than five million jobs, therefore necessitating the commencement of discussions with the Development Bank of Nigeria and some foreign national as well as multilateral development finance institutions to enhance its lending capacity.
While appreciating current efforts by both the Federal Government and the Central Bank of Nigeria at recapitalising the institution, the BoI boss added that the bank’s drive to raise additional loanable funds was imperative for the bank to achieve its developmental agenda which includes ensuring that MSMEs account for at least 30 per cent of the Bank’s projected risk assets of N1.2 trillion by 2019, noting that, as at 30th April, 2017 the bank had already exceeded last year’s disbursement to MSME’s by disbursing more than N13 billion as against last year’s N8 billion which represents 62% increase.
Meanwhile, the Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah also commended the Bank for its highly impressive achievements during the 2016 financial year, adding that bank has also gained significant traction in the implementation of the Government Enterprise and Empowerment Programme (GEEP) that is being rolled out in all the 36 states of the Federations and the Federal Capital Territory.
Speaking at BOI’s yearly general meeting in Abuja recently, Dr Enelamah said: “BOI’s support for the Federal Government’s N-Power Programme under which jobs are being created for 500,000 youths in agricultural and health sectors as well the teaching profession is another highly commendable manifestation of the bank’s contributions to ongoing efforts at diversifying and reviving the national economy.
A close look at the Bank’s results for the 2016 financial year showed that, while the volume of new loans rose by 10% to N171bn from N156bn in 2015 disbursements to small and medium enterprises (SMEs) similarly went up by 42% within the same period to N8bn from N5.64bn.
Indeed, more than 800 enterprises that could potentially generate over 1,000,000 jobs benefited from BOI’s facilities last year.