BoI’s managed funds hit N44.6 billion

Acting MD explains issues with CTIN

Managed funds under the portfolio of the Bank of Industry (BoI) has hit N44.6 billion as at end of the 2015 financial year.The funds may have however risen above the figure considering various Memoranda of Understanding sealed with its stakeholders since the beginning of 2016.

Besides, the bank also debunked reports that investigation activities by the Economic and Financial Crimes Commission (EFCC) at the bank bordered on sale of properties and shares, noting that the issue of alleged misapplied cement funds had since been resolved.

According to the bank, customers’ confidence in any financial institution remains an important asset that cannot be displaced; as such BoI remains committed to effective management of stakeholders’ funds and resources.

Some of the funds managed by the Bank as at December 31, 2015 include the N8.12 billion National Automotive Council Fund, N2.9 billion Dangote Fund, N12.3 billion Rice Processing Fund, N12.5 billion Cement Fund, N1.8 billion National Sugar Industrial Development Fund, N1.48 billion Federal Department of Agriculture (FDA) Cottage Fund as well as other funds managed in partnership with other state governments.

Addressing a press conference in Lagos, on Wednesday, the Acting Managing Director of BoI, Waheed Olagunju explained that activities of EFCC operatives in the financial institution on Monday was to seek answers to a petition raised concerning the management of Cement Technology Institute of Nigeria’s (CTIN) fund.

According to him, parties to the transaction have addressed the concerns raised with the new terms reached on how to manage the funds which have grown from N9 billion in 2011 to N13.2 billion as at last week Friday.

Indeed, BoI was appointed in 2009 to manage the fund that accrued from levies on imported cement for the development of Nigeria’s cement industry.“As and when the funds were released since its inception, BoI granted loans to entrepreneurs in the cement value chain, specifically for investment in risk assets in the cement industry’s value-chain. Between 2011 and 2015, the Federal Government transferred N9.6 billion to BoI based on earlier scheme as approved by the Federal Government.

“When the CTIN was later established, BoI was in 2013 asked to transfer the fund to CTIN’s account with a private commercial bank. A directive that was not carried out by the then management of the bank. In late 2015 the CTIN petitioned the Presidency following which an investigative panel was established.

“However, BoI management had since resolved the matter amicably with CTIN since late February 2016, during which it was agreed that an interest rate of eight per cent should be applied to the fund retroactively to previous releases based on which the fund grew to N12.3 billion as at December 2015.

“The management of the bank had since February 2016 met and agreed with the Chairman of the board of CTIN and President of Dangote Group, Alhaji Aliko Dangote on further utilization of the fund, based on agreement by the two parties-BoI and CTIN.”

“Going forward, effective from last Friday 17th February, 2016 BoI and CTIN agreed that the bank should invest the sum that has now risen to N13.3 billion in the money market on behalf of the institute at an interest rate of nine per cent.

Olagunju stated that as part of measures to rev up its operations, the bank is strengthening its collaboration with its foreign and domestic partners including community based organisations to deepen the bank’s credit delivery process and financial inclusion initiatives.According to him, the bank is on course in 2016 to surpassing the N83.5 billion that was disbursed in 2015.

Already, the Bank has disbursed N95 billion to 400 enterprises in the first half of 2016.Besides, a breakdown of the bank’s earnings for the year showed that the Bank recorded a profit after tax of N47 billion for the year ended December 31, 2015, representing an operating profit of N11.9 billion up by 100 per cent from N6 billion achieved in 2014 and an exceptional income from the gain on sale of some equity securities of WAMCO shares.

“As at the middle of the current year the bank had approved loans totaling N95 billion to more than 400 enterprises and is working assiduously to approving more loans in the second half of 2016 and ultimately meeting the institution’s disbarment target of N212 billion that could potentially lead to the creation of almost 1 million jobs in addition to the 1.6 million projected under the Government Enterprise and Empowerment Programme”, he said.

“BoI as you all know is a responsible corporate organisation and we are also responsible citizens of this great country. We are working assiduously because we have lost many years of development as a country and we are working so hard to do a lot of catching up, because our customers are expectant and they are expecting a lot of support from us”, Olagunju added.