By Henry Umoru
THE   Acting Managing Director of Bank of Industry, BoI Waheed Olagunju, yesterday against moves by the Senate   to disband it following plans   to establish National Development Bank of Nigeria (NDBN). If the Bill for an Act to establish the National Development Bank of Nigeria,(Establishment etc.) Bill, 2016 scales through, passed into law and assented to by the President, the BoI will no longer exist as the new bank would have taken over the hitherto functions of BoI.

MD/CEO, Bank of Industry (BoI), Mr. Olukayode Pitan (right), when he received a delegation from the Association of African Development Finance Institutions (AADFI) at the Abuja office of BoI

Speaking yesterday in Abuja when appeared before the Senator Rafiu Adebayo Ibrahim led Committee on Banking, Insurance and other Institutions public hearing on the National Development Bank of Nigeria,(Establishment etc.) Bill, 2016.  Olagunju told the Committee that the   BoI as presently constituted was   fulfilling the mandate envisaged in the proposed legislation, adding that    what was necessary for the government to do at the moment, rather than scrap it was to   provide BoI with more capital to be able to further support the real sector instead of duplicating functions by creating new Development Financial Institution (DFI).

Olagunju said: “ we are of the opinion that BoI as presently constituted is fulfilling the mandate envisage in the proposed legislation by supporting genuine entrepreneurs.

“BoI should be provided with more capital to be able to further support the real sector instead of duplicating functions by creating new DFIS, bearing in mind that that had been failure of similar DFIs in the past such as NBCI, NERFUND, People’s Bank, Community Banks etc. We advise that the National Assembly should support industrialization by   enacting legislation that would help create an enabling environment for business to thrive such as an amendment to land Use Act, Tax incentives for SMES, establishment of industrial Park. This would substantially address the demand side challenges of finance SMEs in Nigeria as vagaries of the business environment has been making the sector unattractive to private and public lenders.”

Meanwhile, former Minister of Commerce and Industry. Engr. Charles Ugwuh who kicked against the scrapping of BoI, said that it should be allowed to continue with its operations having evolved overtime, adding that there was the need for the creation of many Development Finance Institutions, DFIs in Agriculture, Constructionm, Energy, Oil and Gas and Transportation/ Logistics to drive the rapid transformation that was required.

In his position paper to the Committee, Ugwuh who was President, Manufacturers’ Association, MAN said, “let the Bank of Industry continue with   its focus and activities while the Assembly can midwife another large DFI which can grow and take up some other vital areas of the Nigerian economy. Lean and effective organisations with clear focus are needed at this time not bureaucracy.”