Bank of Industry To Raise N1 Trillion For Industrial Development

Bank of Industry To Raise N1 Trillion For Industrial Development

The Bank of Industry (BoI) has disclosed it plan to raise a N1 trillion loan facility from within and outside the country to partly finance industrial component of the Economic Recovery and Growth Plan (ERGP).

The bank released strategies aimed at revving up its risk assets to N1.2 trillion by 2019 in line with its revalidated strategic plan (2016-2019).

Acting Managing Director,(BoI), Waheed Olagunju, disclosed this in Abuja during the bank’s 57th Annual General Meeting.

According to Olagunju, the bank was engaging in the aggressive fund mobilization drive in order to support federal government’s ERGP as well as support ventures that would fast track Nigeria’s realisation of the Sustainable Development Goals (SDGs).

He said it is envisaged that enterprises financed by BOI would generate more than 5 million jobs.

He noted the bank had commenced discussion with the Development Bank of Nigeria and some foreign national as well as multilateral development finance institutions.

Viable bank

The BoI boss acknowledged the efforts by both the Federal Government and the Central Bank of Nigeria , saying that the bank  is more viable despite competing for needs and financial constraints.

He explained that the recapitalization drive by the bank became necessary in achieving its developmental agenda and in ensuring that MSMEs account for at least 30 percent of the Bank’s projected risk assets of N1.2 trillion by 2019.

Given a breakdown of the bank’s activities in the year under review, he said the bank at 30th April 2017, had already exceeded last year’s disbursement to MSME’s by disbursing more than N13 billion as against last year’s N8billion which represents 62% increase.

According to him, the volume of new loans rose by 10% to N171bn from N156bn in 2015, while disbursements to small and medium enterprises (SMEs) similarly went up by 42% within the same period to N8bn from N5.64bn.

Having approved loans of over N1 trillion over the last decade, half of it in its quest to transform the industrial sector in Nigeria, Olagunju affirmed that the Bank of Industry is indeed well positioned to keep intervening in keys sectors of the Nigerian economy.

Apart from the fact that more than 800 enterprises that could potentially generate over 1,000,000 jobs benefited from the bank’s facilities within the year under review, he also said the quality of the bank’s risk assets improved phenomenally as the ratio of non-performing loans dropped to 3.72% in 2016 from 5.87 in 2015.

topics from
There is no comment