The Bank of Industry is Nigeria’s oldest, largest and most successful finance institution currently operating in Nigeria, with a mandate to provide financial assistance for the establishment of large, medium and small projects as well as the expansion, diversification, rehabilitation, and modernisation of existing enterprises.
It is owned by the Ministry of Finance Incorporated Nigeria, the Central Bank of Nigeria and private shareholders. The bank has 11 members on its board and it is chaired by Aliyu Abdulrahman Dikko. Over the last six years, it has provided financing to over Four million enterprises, helping create over 7 million jobs, including diversifying NiGERia’s economy beyond dependence on the volatile oil and gas industry.
Under the leadership of Olukayode Pitan, its MD/CEO, BoI believes it is very important that Nigerians get access to the type of financing assistance it provides. It exists to facilitate the transformation of Nigeria’s industrial sector by providing financial and advisory support for the establishment of large, medium and small projects/ enterprises, and the expansion, diversification, rehabilitation and modernisation of existing enterprises.
BoI’s ultimate mandate has been to transform the industrial sector for the economic development of Nigeria. The bank provides advisory services, funding to micro-small-medium-large enterprises. The bank has access to long-term financing, which explains why it can afford to give loans up to eight years, at cheaper cost of funding. This commitment has continuously driven it to develop innovative strategies, interventions and solutions that are propelling the Nigerian economy towards sustained growth.
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 its 30 state offices nationwide.
Interestingly, most of the loans from BoI are priced at less than 10%, despite the inflation rate which is slightly over 20%. Since our inception, BOI has consistently supported numerous Nigerian businesses across various sectors, including Agro and food processing, oil and gas, solid minerals, healthcare and petrochemicals, creative industries, renewable energy, engineering, and technology.
The bank also focuses on areas the Federal Government has interest in: this is one of the reasons the bank was set up. The creative sector, which is now popularly de-risked by the Bank of Industry. By extension, it focuses on the agro-manufacturing sector of the country. The IT sector among other sectors too enjoy the macroscopic view of the bank. Running with its mission, to transform Nigeria’s industrial and private sector by providing financial and business support services to enterprises of any size.
Speaking on why Nigeria’s industry needs to be transformed, Mr. Pitan once said most of the things used in Nigeria are imported; a drain on the foreign reserves of the country. Many of these imported items could be manufactured here in Nigeria, and this is why BoI has been relentless about its support for the made-in-Nigeria industries.
Local manufacturers make use of local raw materials, they also increase capacity of the local companies, and also reduce the pressure on foreign exchange, while massive employment comes to the fore. In Nigeria, there are about 41 million SMEs, who provide over 80 percent of employment. You see why the Bank of Industry is important?
In the last five years, the Olukayode Pitan led financial institute has been successful in raising funds, either through syndications or the bond market. Actually, BoI approached the Bond market for the first time recently. All the funds accessed were in foreign exchange.
Protecting the BoI from foreign currency rate risk, BoI normally swaps all these monies into naira, with the help of the Central Bank of Nigeria. CBN has helped the bank tremendously by providing guarantees.
World Finance, a foreign organization, crowned the Bank of Industry its most sustainable bank 2022. This recognition is an attestation to the Bank’s relentless efforts, which has gone global. The bank over the years, has subscribed itself to responsible banking, aligning itself to global SDG goals and the Paris climate agreement, in such that its type of business is fair to everybody and it takes into account the future.
Olamide Adeniji is a member of the editorial team of TheScript Newspaper
