Bank of Industry raises investment to N48.4b

Bank of Industry Limited (BOI), Nigeria’s oldest, largest and most successful development financing institution, said it was able to raise its volume of investments to N48.4 billion in 2010, a 262 per cent improvement over N18.5 billion recorded in 2009.

The Chairman of the bank, Alhaji Abdulsamad Rabiu who spoke at the bank’s 51st Annual General meeting in Abuja on Thursday, said from N105.36 million profit before tax in 2005, BOI was able to grow profit by 2,355 per cent to N2.578 billion in 2010.

“I am pleased to report that your bank has once again demonstrated that enterprise profitability and discharged of developmental mandate are not exclusive,” he said.

“In 2010, the bank not only recorded an unprecedented quantum leap in its level of support to industrial sector, especially micro, small and medium enterprises (MSMEs), it also posted its highest profit.”

He put the bank’s cumulative volume of approvals over five years at N114.3 billion from N9.8 billion in 2005, a 1,066 per cent growth.

“The developmental impacts of the bank’s operations have also been commendable. For instance, the number of jobs created by its assisted companies and cooperative groups grew from 150,000 as at 2005 to more than 1,000,000 by 2010,” he said.

On the operating environment, he said Nigerian economy recorded improvements in 2010, despite the global financial crisis and the domestic capital market, but development analysts “are of the view that the economy could have done better but for the infrastructural deficiencies which are gladly being addressed by government.”

He acknowledged the positive impact of the successful general election in Nigeria, saying BOI was already meeting the challenges posed by the positive trend and the Federal Government’s determined efforts at revamping the national economy.

“In line with the bank’s mandate to transforming the Nigerian economy and integrating it into the global system, which is also sync with the government’s transformation agenda, BOI’s operations will continue to be aligned with efforts at accomplishing Nigeria’s development aspirations, the Vision 20:2020 and the Millennium Development Goals,” he said.

He said the bank had consolidated its niche as a highly competent national development finance institution with its appointment as manager of the Dangote Foundation’s N5 billion Small Business Development Fund and the United nations Development Programme’s $4 million Access to Renewable Energy Project in Nigeria, and recently the Federal Government facilitated the approval of a $500 million line of credit to the bank by the African Development Bank.

“These are in addition to the 16 development initiatives at state and national levels that BOI was earlier appointed to manage. They include Micro Small and Medium Enterprises Development Funds totalling N3 billion in nine states, the Central bank of Nigeria N500 billion Intervention Fund, N100 billion Cotton, Textile and Garment Industries Revival Scheme and the N10 billion Rice Processing Fund,” he said.

“The developmental impact of these initiatives have been quite considerable. One of the most outstanding is the reopening of the United Nigerian Textile Plc factory in Kaduna under the CTG scheme. The company has started recalling thousands of laid off workers.”

BOI was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. It took off in 1964 with an authorized share capital of 2 million (GBP).

The International Finance Corporation which produced its pioneer Chief Executive held 75% of its equity along with a number of domestic and foreign private investors. Although the bank’s authorized share capital was initially set at N50 billion in the wake of NIDB’s reconstruction into BOI in 2001, it has been increased to 250 billion in order to put the bank in a better position to address the nation’s rising economic profile in line with its mandate.

Following a successful institutional, operational and financial restructuring programme embarked upon in 2002, the bank has transformed into an efficient, focused and profitable institution that is well placed to effectively carry out its primary mandate of providing long term financing to the industrial sector of the Nigerian economy.

Source: Worldstage