Bank of Industry Limited (BoI) is the oldest and largest Development Finance Institution (DFI) in Nigeria. The bank is seen as a major development financing institution and has been a flagbearer in the provision of long-term financial support to various industries of the country.
During its 60th annual general meeting which held virtually in line with COVID-19 protocols of the Federal Government, the bank said it recorded a growth of 16.7 percent from N634.11bn in 2018 to N740.03bn in 2019.
Mr. Aliyu Dikko, Chairman of BoI, says: “We made significant progress towards improving the size of our loanable funds, leveraging our strategic partnerships in the international market and the support of the CBN.”
He adds that during the year under review, BoI disbursed N234bn to 10,145 enterprises, facilitating the creation of an estimated one million direct and indirect jobs.
The amount disbursed to the Micro, Small and Medium Enterprises segment of Nigeria in 2019 rose by 56.3 per cent to N53bn year-on-year from N33.9bn disbursed in 2018.
BoI also reviewed interest rates downwards to five percent per annum, with a three-month moratorium.
Interest income and interest expense rose by 20 per cent and 54 per cent on a year-on-year basis respectively, due to increase in loan book as well as the impact of borrowings.
The increase was recorded despite a slow start in the first quarter of that year due to the build-up to the 2019 general elections.
BoI promises to continue providing financial and non-financial support to local companies to help them improve operational efficiency to compete and take advantage of the anticipated improved demand after the African Continental Free Trade Area (AfCFTA) kicks off.
What is the Bank Of Industry? It is a parastatal under the Federal Ministry of Industry, Trade and Investment, with a primary objective to provide financial aids and support for the establishment of small scale, medium and large scale projects.
The bank targets businesses that engage in manufacturing and processing activities. Target sub-sectors include Agro-processing, Solid Minerals, Information Technology, Oil and Gas and Creative Industry.
It is owned by the Ministry of Finance Incorporated (MOFI) Nigeria (94.80%), the Central Bank of Nigeria (CBN) (5.19%) and private shareholders (0.01%).
In 2001, the BOI was reconstructed out of the merger of the Nigerian Industrial Development Bank (NIDB), Nigerian Bank for Commerce and Industry (NBCI) and the National Economic Reconstruction Fund (NERFUND).
How can you access BoI loans? BOI’s operational framework favours financial management and resourceful project selection, which is targeted at job creation and poverty alleviation in the country.
The bank does not disburse the loan to the borrower in cash but to the vendors and suppliers of the equipment that the loan application is for.
To obtain a loan successfully from the bank, there are some requirements you must meet. We will discuss this in our next topic so stay tuned.
You can apply for bank of industry loan by either visiting their office and obtain the necessary documents or you follow the steps below to apply online.
To apply online, ensure you have all the necessary requirements ready including the business plan. Head over to https://www.boi.ng/apply/.