President Jonathan Commissions BoI’s Office, Orders Recapitalisation

The Federal Government has ordered the recapitalisation of Bank of Industry (BOI) and directed that its equity be opened up to attract investors.

This is to ensure adequate funding for the nation’s industrial sector.

President Goodluck Jonathan, who gave this directive at the  inauguration of the BoI building in Abuja, said that there was an urgent need to open up the bank’s equity to enable it link up with institutional investors who would buy into its programmes with a view to increasing the institution’s capital base.

Jonathan  said he has directed  the Central Bank of Nigeria (CBN) Governor Lamido Sanusi,  and Minister of Finance Ngozi Okonjo-Iweala,  to meet with Minister of Trade and Investment Olusegun Aganga, to come up with modalities, which would enable Federal Government increase the capital base of Bank of Industry.

He  said the move to recapitalise the bank was not to only  to improve its capacity to fund the country’s industrial sector, but to also align its operational practices with  international best practices.

“If our vision and hope that Nigeria will play big globally by 2020 will be realised, we need the bank that will be so dedicated to funding industrial sector, especially agriculture,” he said.

The President said the Federal Government on its part will continue to give the BoI all the supports it needs to play a pivotal role in the industrialisation of Nigeria. “We shall ensure that the bank’s corporate governance practices, operational policies and procedures are in line with international best practices to enable it attain the top radius needed to mobilise the much needed financial and technical resources  we need to fast-track the transformation of our industrial sector.

“In this regard, we shall accelerate the recapitalisation of BoI and open up its equity to development, focus foreign institutional investors who will maintain bank development mandate. This has become imperative since due to other competing priority, particularly in social services that lack the capacity to generate income, the government alone cannot meet the financial investment requirement of the bank,” he said.

Evenly Oputu, Managing Director BoI noted that has in the last 10 years of its operations approved 1,435 loans and investment totaling N165.74billion with considerable development impact on the Nigeria economy.

She said: “It is gratifying to note that in the last 10 years BoI despite our challenging environment, recorded appreciable stride in pursuit of its mandate and its evolution into a strong, dynamic and flexible development finance institution (DFI) that proactively responds to the needs of entrepreneurs in Nigeria.”

Olusegun Aganga, Minister of Trade and Investment said his ministry, along with all its agencies would not leave any stone unturned in facilitating the transformation of Nigeria and the industrial sector as  part of  efforts  to diversify the Nigerian economy.