BoI affirms commitment to supporting backward integration
In an effort to encourage import substitution in areas the country has competitive and comparative advantage, the Bank of Industry (BoI) has renewed its commitment to supporting genuine investments that have plans to backwardly integrate.
The Managing Director, BoI, Olukayode Pitan, explained that the move was to encourage and attract local and Foreign Direct Investments (FDIs) to develop the nation’s huge abundant natural resources, save scare foreign exchange and create job opportunities for the nation’s teeming unemployed youths.
Pitan stated this at a facility tour to Proforce Limited, a manufacturer of various defence land systems in sub-Saharan Africa situated in Sagamu area of Ogun State.
He commended Proforce for its investment in the Nigerian economy, saying that the company has saved the country a lot of money, stressing that the development finance institution is happy that the loan facility borrowed had been put into good use.
“We are also happy that you have employed a lot of people here and we know that the numbers of employees are going to increase by the time you expand your operations in Port Harcourt. On our own part, we will keep supporting companies like this; companies that support backward linkages; companies recruiting Nigerians while also saving our foreign exchange; companies that their products will be exported to earn foreign exchange for the country. We will do what we can to support what you are doing,” he said.
He said the tour has shown that a Nigerian company has succeeded in developing domestic capacity for the production of armoured vehicles by acquiring modern technology from all over the world to make military-grade defence vehicles.
Earlier, the Managing Director, Proforce Ltd, Adetokunbo Ogundeyin, commended BoI for supporting the firm’s operations with access to finance, saying that the company’s operations would not have grown without funding from the bank.
According to him, Proforce has developed a large portfolio of products for the military and civilian markets.
“We are able to customise solutions to fit clients’ needs, while maintaining the industry’s highest levels for quality and performance. “With upsurge of insurgency in North East, we request that BoI assists in financing of Proforce’s expansion drive,” he said.
He said that the company has acquired about 150 hectares of land for expansion and to deepen backward integration into its production process, saying it has started local production of helmets and vests.
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