The Bank of Industry (BoI) weekend disclosed plans to raise N1 trillion loan facility from within and outside the country to part-finance industrial component of the Economic Recovery and Growth Plan (ERGP).
Acting managing director, (BoI), Mr. Waheed Olagunju, made this known in Abuja during the bank’s 57th Annual General Meeting (AGM).
Olagunju explained that the recapitalisation 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.
Under the plan, the bank also envisaged that enterprises it financed would generate more than five million jobs.
While acknowledging the efforts by both the federal government and the Central Bank of Nigeria (CBN) to make the bank more viable despite competing needs and financial constraints, the BoI boss said in order to support federal government’s ERGP as well as support ventures that would give speed to the country’s realisation of the Sustainable Development Goals (SDGs), the bank had commenced aggressive fund mobilisation through discussions with the Development Bank of Nigeria(DBN) and some foreign, national as well as multilateral development finance institutions
Giving a breakdown of its activities in the year under review, he said the bank as at 30th April 2017, had already exceeded last year’s disbursement to MSMEs by disbursing more than N13 billion as against last year’s N8billion which represents 62 percent increase.
According to him, the volume of new loans rose by 10 percent to N171billion from N156billion in 2015, while disbursements to small and medium enterprises (SMEs) similarly went up by 42 percent within the same period to N8billion 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(BoI) was indeed well positioned to keep intervening in keys sectors of the Nigerian economy.
Source: Nigeria Today