In October 2021, the Bank of Industry (BOI) became an official Signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry developed through a partnership between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).
This global framework has since then strengthened BoI’s approach to addressing the sustainable development challenges of Nigeria’s economy by critically analyzing its market to identify pressing needs of our communities, environment & customers.
In line with BOI’s vision to be Africa’s leading Development Finance Institution transforming industries sustainably & operating under global best practices, the Bank is confident that these principles provide an opportunity for alignment with international standards for sustainable development, whilst lending credibility and authority to its institutional commitments. This action is also in line with the Bank’s sustainability strategy aimed at transforming lives & enterprise responsibly through sustained interventions in economic development, environmental protection, social impact, ethics, governance and partnerships; improving the world for generations to come.
In line with its vision, the Federal Government in collaboration with the Bank of Industry (BOI) concluded plans to commence the disbursement of N75 billion to Micro, Small and Medium Enterprises (MSMEs) across the country by January 2024.
This is a good sign of development under the leadership of Olasupo Olusi, the Managing Director and Chief Executive Officer of the Bank of Industry (BOI).
The beneficiaries will enjoy a single digit interest rate of 9% on the loans, adding that the loan initiative was targeted mostly at women and youths.
The move was part of an effort in keeping to President Bola Tinubu’s promise to support the transformation of the MSMEs space in the country.
The Federal Government and the bank would leverage existing platforms to provide the loans to small businesses, targeting women and youths.
Recall that earlier in December, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, had hinted that the Federal Government had perfected plans to commence the N75 billion Presidential Palliative Loan Programme for MSMEs, as well as N75 billion specifically for Manufacturers.
This was even as she stated that the Federal Government would also commence the long-awaited Presidential Conditional Grant Programme, through which it will disburse a grant sum of N50,000 (Fifty Thousand Naira) to nano businesses across the 774 local government areas.
She disclosed that the Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) will collaborate with State and Local Governments, Federal Legislators, Federal Ministers, Banks and other Stakeholders.
The Minister noted that the loan to both MSMEs and manufacturers shall be administered to the beneficiaries at a single-digit interest rate of 9% per annum.
The Bank of Industry Limited (the “Bank” or “BOI”) is Nigeria’s foremost Development Financial Institution (DFI). It was incorporated in 1959 as the Investment Company of Nigeria (ICON) Limited and reconstructed into the Nigerian Industrial Development Bank (NIDB) in 1964 under the guidance of the World Bank. The International Finance Corporation which produced BOI’s pioneer Chief Executive held 75% equity along with a number of domestic and foreign private investors. The Bank transformed into the Bank of Industry in 2001, following the merger of the mandates of NIDB, Nigerian Bank for Commerce and Industry (NBCI) and the National Economic Reconstruction Fund (NERFUND).
BOI has a mandate to transform Nigeria’s industrial sector by providing financial assistance for the establishment of large, medium and small enterprises; as well as to drive expansion, diversification and modernization of existing enterprises; and rehabilitation of ailing ones. This mandate is geared towards supporting projects with potential developmental impact, and the capability to generate considerable multiplier effects such as industrialization, job creation, and poverty alleviation, which would have significant positive effects on the socio-economic condition of Nigerians.
The Bank continues to support growth across various sectors including Agro and Food Processing, Creative Industries, Engineering and Technology, Healthcare and Petrochemicals, Oil and Gas, Renewable Energy and Solid Minerals; leveraging our state offices nationwide.
Mr Olusi has served as a World Bank economist and development finance expert over the past 20 years.
Between 2011 and 2015, he served as the economic adviser to the Coordinating Minister of the Economy and Minister of Finance.
Mr Olusi is an alumnus of Hull University, United Kingdom. He also obtained a Master’s degree in International Money, Finance, and Investment, as well as a Doctorate in Finance & Economics from Durham University, United Kingdom, in 2005.
The president tasked the new BOI chief executive to ensure that Nigerians, who are operating all sizes of enterprises across sectors, are given fair and equitable access to much-needed support to bolster employment generation and wealth creation amongst income groups in the country with special regard for lower and middle-income enterprise operators.
Olamide Adeniji is a member of the editorial team of TheScript Newspapers
