The Bank of Industry (BOI) has been the silent catalyst driving Nigeria’s Industrial growth, with its current leadership under Dr Olusi at the forefront of the recent milestone impacts. Before the recent developments, Nigeria’s industrial growth had been largely hampered by a heavy reliance on oil and gas, leading to a sluggish manufacturing sector despite its vast potential. Though some pockets of industrial development existed particularly in the Lagos-Ogun axis and Port Harcourt, the overall contribution of manufacturing to the GDP remained low. It suffered significant challenges like infrastructure limitations, inconsistent policy, and a lack of access to finance hindering further progress.
Since its inception, the BOI has been primarily focused on promoting industrial development by providing financial and advisory support to small, medium, and large enterprises across various sectors. It aims to facilitate the establishment, expansion, and modernization of businesses within the Nigerian economy, thereby driving industrial growth and economic development in the country. According to recent data, Nigeria’s industrial sector contributes around 32.58% to the GDP, with the manufacturing subsector being a major component in recent years. This is reflective of the tireless efforts of the Bank of industry which are rather applaudable if considered in terms of the current economic state of the country. BOI has also supported over 5.37 million enterprises and has created nearly 15 million jobs.
Taking a glance at history, The Bank of Industry (BOI) began operations in 1959 as the Investment Corporation of Nigeria (ICON). It was later restructured into the Nigerian Industrial Development Bank (NIDB) in 1964. In 2001, the NIDB merged with the Nigerian Bank for Commerce and Industry (NBCI) and the National Economic Reconstruction Fund (NERFUND) to form the BOI. As Nigeria’s largest and oldest development financing institution, It aims to support the industrial sector by providing financial assistance to businesses. The BOI also supports projects that can create jobs, reduce poverty, and modernize existing businesses.
In furtherance of its mandate, the BOI has implemented several intervention programs to support Nigeria’s industrial sector, manufacturing, and small and medium-sized enterprises (MSMEs). Through the Power and Airline Intervention Fund (PAIF), the Bank funded over 1,662.3 MW power generation capacity with over 65% being new capacity. It also re-financed part of the acquisition costs for 29 aircraft for 10 airline companies and provided working capital-related facilities of N16.4 billion for 8 airline companies. The Restructuring & Refinancing Facility (RRF) was also set up and has helped in stabilizing the SME and manufacturing sectors through reduced interest burden and extended tenor. Notable businesses financed by the bank through the intervention funds include Ashakem PLC, Paras Energy and Natural Resources and BU Power.
Recently; In October 2024, the BOI/FGN 75 Billion intervention fund was introduced to offer subsidised loans to MSMEs in manufacturing and agro-processing.
In this regard, the efforts of the current leadership of BOI are outstanding. The incumbent Managing Director/Chief Executive Officer; Dr Olasupo Olusi, was appointed in October 2023. Before undertaking the responsibility of BOI, Dr Olusi was World Bank Country Economist for many countries, Economic Adviser at the Federal Ministry of Finance in Nigeria, and Senior
Private Sector Specialist at the International Finance Corporation (IFC). After his appointment, Dr Olusi noted during a speech that “the financial sector’s role is crucial in facilitating the building of a vibrant industrial sector”.
Few months into Dr Olusi’s oversight of BOI, it was announced through the 2023 annual report that BOI’s profit before tax increased by a huge 117.69%; from N70.7 billion in 2022 to N153.81 billion. In addition, total equity also increased by 57.7% i.e from N427 billion in 2022 to N673 billion.
Barely a year into the administration, BOI achieved the largest loan syndication ever made in its history. It received €1.425 billion from the senior phase of a global loan syndication; a 42.5% oversubscription from international financial markets. This later accumulated to over €2 billion; breaking the administration’s former record by November 2024.
During the period, the Bank also collaborated with many organisations capable of boosting its mandate. It partnered with the Manufacturers Association of Nigeria (MAN), the Nigeria Association of Small Scale Industrialists (NASSI), and the Nigeria Association of Small and Medium Enterprises (NASME) to advance the manufacturing and SME sectors. Then it entered partnership agreements with the French Development Agency (AFD) to the tune of €100 million credit-line, and FSD Africa targeted at expanding green finance in Nigeria. It has also collaborated with the Ministry of Women Affairs and the National Youth Service Corps (NYSC), aimed at boosting economic empowerment for women and youths.
In the light of the foregoing, it needs no seer to determine that if the Bank of Industry and Dr Olusi’s administration continue in these giant strides, the height of growth for the BOI and the antecedent impact on Nigeria’s Industrial sector cannot be statistically predicted.
Deborah Anyanwu,
Member of the editorial team of TheScript Newspapers.
