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SMEs received N8bn loans from BoI in 2016

…Total loans at N171bn

By Yinka Kolawole, with agency report

DISBURSEMENTS  of loans to Small and Medium Enterprises (SMEs) sub-sector by the Bank of Industry (BoI) in 2016 increased by 42 percent to N8 billion from N5.64 billion in 2015.

This was contained in the bank’s 2016 annual account which also indicated that the bank’s total loans and advances rose by 10 per cent to N171 billion in 2016 from N156 billion in 2015.

BOI’s loan support to SMEs sub-sector starts from N5 million. However, loans below N5 million are provided on the bank’s matching fund platform which is operated in collaboration with various state governments and on its Bottom of the Pyramid (BOP) scheme which is operated through MicroFinance Banks.

The bank further noted that the quality of its risk assets improved with a reduction in the ratio of non-performing loans to 3.72 per cent in 2016 from 5.87 per cent in 2015.

It assured its stakeholders of a positive financial year in 2017, noting that its financial operations in the first quarter of 2017 indicated that the bank performed profitably against the first quarter in 2016.

Mr. Waheed Olagunju, the Acting Managing Director of the bank, attributed the growth to strong commitment, professionalism and strict adherence to global best practices.

He said that the achievements culminated in BOI’s consistent high ratings by international and domestic rating agencies. He described last year as the best in the bank’s history despite the year’s economic headwinds.

Olagunju added that these achievements also culminated in BOI’s consistent high ratings by international and domestic rating agencies being upgraded and affirmed.

While Moody’s assigned BOI Aa1 in 2016 up from Ba3 of 2015, Agusto’s rating of AA- in 2016 was higher than A+ of 2015. AA+ assigned by Fitch in 2015 was affirmed in 2016.


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