Business
BOI assures of better days ahead for businesses in Nigeria
…raises $5bn from international market
Bank of Industry (BOI) has reiterated its resolve to beat its targets in committing to driving sustainable industrialisation, supporting clients with innovative financing solutions, expanding partnerships, and strengthening financial inclusion efforts.
It also vowed to continue working closely with government agencies to advocate for policies that foster a supportive business environment, particularly for MSMEs and start-ups, thus, building a resilient and inclusive economy.
Speaking at the bank’s 65th anniversary, in Lagos recently, the Managing Director /Chief Executive Officer of BOI, Dr. Olasupo Olusi, said the bank has positively impacted the lives of countless Nigerians by supporting businesses, promoting job creation, and facilitating inclusive economic growth.
He noted that the bank, which started from our humble beginnings as the Investment Company of Nigeria (ICON) in 1959, to the Nigerian Industrial Development Bank (NIDB) in 1964, and finally transformed into the Bank of Industry in 2001, has continuously evolved to meet the changing needs of Nigeria’s economy.
According to Olusi, “As we mark this historic milestone, I would like to highlight some of the Bank’s key achievements over time. In 2007, BOI’s authorised share capital was increased to ₦250 billion to put the bank in a position to address its mandate better; this was subsequently increased to ₦500 billion in May 2023. In recognition of the pivotal role of MSMEs in national economic development, the Bank in 2014 engaged 122 SME consultants and entered strategic alliances with 10 SME-friendly commercial banks. Today, we have over 300 Business Development Service providers supporting SMEs nationwide.”
He also revealed; “The bank also has a robust onlending program with various financial institutions, including microfinance banks and fintechs. In 2015, BOI commenced a national footprint expansion by opening eight state offices. This drive has continued through the years, and I am proud to say that today, the bank has a presence in 33 states nationwide. In 2017, BOI commenced raising funds on the international market with a US$750 million AFREXIM loan. Since then, we have successfully raised over $5 billion from the international capital markets through Eurobonds, loan syndications, and green finance instruments. This month, we concluded a global loan syndication that raised nearly 2 billion euros which is the largest fundraising in BOI’s history and indeed the largest syndication in the history of African DFIs. One key thread in achieving these milestones through the years is our partners.
“In November 2023, the Federal Government of Nigeria appointed BOI as the executing agency for the ₦200 billion FGN MSME Intervention Fund, which includes a ₦50 billion Presidential Conditional Grant Scheme (PCGS), a ₦75 billion Manufacturing Sector Fund, and a ₦75 billion MSME Intervention Sector Fund. This program is currently being disbursed and there are numerous stories on the impact on private enterprises. Our strategic partnerships also extend to numerous organisations, such as African Development Bank (AfDB), the African Finance Corporation (AFC), Investment Climate Reform (ICR) initiative, the African Guarantee Fund (AGF), the Multilateral Investment Guarantee Agency (MIGA), the United States Export-Import Bank (USEXIM), the International Finance Corporation (IFC), etc. and several others.
“In 2024, we introduced our six thematic focus areas to drive developmental impact —Gender, Climate and Sustainability, Youth and Skills, Digital Economy, and Infrastructure. These themes stem from their importance to Nigeria’s overarching development and will guide our financing interventions in the Nigerian economy. This year, we launched the Rural Areas Program on Investment for Development (RAPID) program, to promote financial inclusion and support the development of micro and small businesses in rural Nigeria, focusing on youth and women.
“We are improving on our product offerings with plans to scale up Non-Interest Banking (NIB), Export Credit Agency (ECA) and Supply Chain Finance (SCF) with a view to provide adequate financing to various economic clusters, recognising our national diversity to drive economic growth. In alignment with Nigeria’s sustainability agenda, BOI has also launched a climatefocused initiative. As a testament to this, BOI has been nominated as a Direct Access Entity by the Nigeria Climate Change Commission (NCCC) to access financing for climate projects through the Green Climate Fund (GCF). This designation empowers BOI to spearhead climate initiatives and support sustainable development efforts in Nigeria” he also said.
