BoI to leverage DMBs’ network for indirect lending
• Plans to support over 30,000 entrepreneurs by 2019
To further improve access to cheap funds and increase its developmental impact in the country, the Bank of Industry (BoI) has reiterated its resolve to leverage Deposit Money Banks’ (DMBs) network in deploying funds to the real sector.
According to the Bank, bridging the funding gap of about N5 trillion will require consolidated efforts of other stakeholders like the commercial banks, considering their capacity and network.
The Bank’s acting Managing Director, Waheed Olagunju, explained that to support the industrial sector in domesticating local production, the bank is working tirelessly to mobilise resources within and outside the country.
Olagunju, during Harvard Business School Association of Nigeria (HBSAN) members forum, tagged “Alternative sources of financing in a high interest rate environment”, said: “We try to see how best to finance the industrial sector of the Nigerian economy and for BoI to be relevant as an alternative financing mechanism, we have to provide credit to the entire economy which indirectly means we should be able to support the real sector of the economy to the tune of N5 to N7 trillion per annum.”
Olagunju also unveiled plans to support over 30,000 entrepreneurs over the next two years, noting that this move is aimed at creating more than five million job opportunities for the nation’s teeming unemployed youths.
The acting Managing Director, BoI, Waheed Olagunju, explained that the Development Finance Institution (DFI) has earmarked about N1.2 trillion to support entrepreneurship development in Nigeria, saying that the bank is well grounded to play a giant role in Nigeria’s quest for economic development and diversification.
In his words: “We are contributing our quota towards industrializing the country, because what makes a clear difference between the rich and the poor countries of the world is the extent to which they are industrialized. We will continue to do our best and we will not relent on our efforts. 2017 is going to be much better than 2016, because the economy is already taking shape and things are likely going to get much better in 2017.”
According to him, Nigeria has what it takes to be among the top 10 economies of the world in no distant time, stressing that the DFI will stop at nothing to make Nigeria great again.
“Year-on-year, the bank has been growing and waxing stronger such that as at last year, we recorded our best financial performance. We have built on the experience we acquired in NIDB, NDCI and NERFUND in designing the credit policy and procedures of BoI. We are well positioned to mobilize resources from within and outside the country to support Nigeria’s industrial sector.”
He said despite the bad stories about Nigeria, investors are more than willing to invest in Nigeria, adding that prior to recession, Nigeria was ranked 4th in the world in terms of Return on Investment (RoI) with 35 per cent while positive growth indications from post recession shows that managers of fund outside the country have all indicated interest in doing business in the country.
Meanwhile, Olagunju while also speaking during Hall of Grace (HOG) anniversary awards, commended the organizers of the awards for recognizing BoI’s role in supporting Nigeria’s industrialization efforts, saying this would spur the bank to do much more going forward.
“We commend the organizers of the award for appreciating the efforts of the bank and this will encourage us to do more in the country. I am an incurable activist when it comes to Nigeria’s prosperity and prospects”, he said.
I know that we have all it takes to be among the best and the biggest countries in the world and I also believe nothing stops us to be among the top 10 within a very short time. I have to make my own contributions in my little space to ensure that we propel this country to very great height. We are all stakeholders in this country and we have nowhere to go. We need to work for the future of our grandchildren. What we are doing at the bank is to prepare a greater for our children and our future generations to come,” he said.