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BOI-managed funds hit N1.6trn

By on June 10, 2013

Managing Director of the Bank of Industry, Evelyn Oputu, has said that the intervention fund being managed by the bank is more than N1.6 trillion.

Oputu said this in Lagos while fielding questions from newsmen at a media training programme, with the theme, “Enhancing the role of the media in the transformation of Nigerian industrial sector”.

The BoI boss noted that due to the confidence reposed in the management of the bank by the government as well as local and international development partners, its managed funds had increased considerably.

“No government or development agency would give money to an institution if it has been making losses. And they know the funds are secured with us,” Oputu said.

She gave a breakdown of the funds as follows: Central Bank of Nigeria’s N235 billion financing fund for commercial banks; N100 billion Cotton, Textile and Garment Fund’ N10 billion Rice Sector Fund; and N16.91 billion National Automotive Council Fund.
Others are $4 million UNIDO Energy programme; $500 million AFDB fund; N500 billion Power/Aviation Fund; N5 billion Dangote Fund; N9.5 billion cement fund; as well as N90 million Women Affairs Fund.

The Managing Director assured the business community of access to funds.
According to her, “You don’t need insider connection. Rather, the entrepreneur should have a well-packaged bankable proposal before seeking funding support from the bank.

“The bank insists on collateral for big loans because the money is not mine. It belongs to Nigerians. And if you don’t pay back the loan, I’ll sell your house and recover the loan.”

Regarding loans disbursements and recovery, Oputu said the bank had witnessed unprecedented expansion in its credit operations without compromising the quality of its investments and posted impressive financial results.

Speaking further, she disclosed that the cumulative value of fresh loans and investments rose by 1.91 per cent from N9.8 billion to N202.3 billion between 2005 and mid 2012.

“Risk asset also grew by 691 per cent to N105.27 billion by September last year from N13.3 billion in 2008.

“Also, the portfolio of risks declined from 65 per cent in 2005 to 15 per cent in 2012,” Oputu added