…lists achievements @65

By Emeka Anaeto

In its bid to provide adequate funding for Nigeria’s industrial development finance, the Bank of Industry Limited, BoI, has raised over $5 billion in international funding instruments.

The bank has also executed €2 billion loan syndications which is the largest fundraising in its history and the largest syndication in the history of African development finance institutions, DFIs.

To adequately deploy these funds the bank has created over 300 Business Development Service providers supporting SMEs nationwide. The bank also has established a robust onlending program with various financial institutions, including microfinance banks and fintechs.

These were disclosed by the Managing Director of the bank, Dr Olasupo Olusi, while briefing newsmen in Lagos on the bank’s 65th anniversary.

He stated: “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.

“One key thread in achieving these milestones through the years is our partners. BOI has established strategic partnerships with key local public and private institutions, as well as global financial and multilateral institutions to enable the bank to fulfill its mandate effectively. BOI partners with State Governments, and Foundations to establish the “Matching Fund” scheme.

“We also have partnerships with trade associations, such as the National Association of Small and Medium Enterprises (NASME), Nigerian Association of Small-Scale Industrialists (NASSI), and Manufacturers Association of Nigeria (MAN), to deepen real sector financing. BOI recently signed a partnership agreement with SMEDAN to provide Nano and Micro Enterprises in Nigeria with a ₦1 billion fund at a single-digit interest rate. We have partnerships with several other public agencies like NCDMB, to support specific sectors.”

Listing further achievements of the bank, Olusi stated: “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 the last twelve months, we have also revised our strategy to focus on impact and introduced various strategic initiatives in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda and in response to emerging macroeconomic issues.

“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 wiwill 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.”

Outlook
On the outlook for the bank, Olusi stated: “Looking into the future, we reaffirm our commitment to driving sustainable industrialisation, supporting clients with innovative financing solutions, expanding our partnerships, strengthening financial inclusion efforts, and 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.

“This anniversary is a testament not just to the longevity of our institution but also to the resilience, adaptability, and shared purpose that we carry in our mission”.