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Jonathan approves new package for BoI recapitalisation

By on June 11, 2013

The Federal Government has approved plans by the Bank of Industry (BOI) to shore up its capital base by N750 billion.

Speaking at a training programme for media practitioners in Lagos, Mr. Joseph Babatunde, General Manager, BOI, explained that when the N750 billion recapitalisation is achieved, the fortunes of the bank would be turned around.

He said, “The challenges militating against the effective performance of BOI include under-capitalisation. This hinders the bank developmental impact and attracts needed long term funds from international and multilateral agencies.

“There is already a Presidential approval for the recapitalisation of the bank to the tune of N70 billion. Government in the last couple of years has been very proactive in the area of addressing the dearth of long term invisible funds required by the manufacturing sector.

“There are several sector specific intervention funds and schemes in Nigeria today more than ever before in the history of our nation.

“Although, no time frame has been set for the release of the fund, it would help to enhance the capacity of the bank to provide finance for businesses in Nigeria, particularly the Small Scale Enterprises.”

Babatunde stated that under-capitalisation of the bank has hindered its ability to deepen developmental impact and attract the needed long term funds from international and multilateral agencies.

Speaking further, Ms Evelyn Oputu, Managing Director, BOI, disclosed that the bank has disbursed N238 billion to Small and Medium Enterprises (SMEs) across the country since she assumed office in 2006 to date.

Oputu noted that the bank had developed a model that allows state governments to also contribute to the intervention fund for small and medium scale entrepreneurs, noting that 20 states had bought into the programme.