BoI disburses N107 billion to over 1.5m SMEs this year

The Bank of Industry (BoI) said it had disbursed about N107 billion to over 1.5 million small and medium-scale enterprises (SMEs), a figure it originally hoped to cover this year.

The bank is looking at hitting N120 billion before the end of the year even as it has reduced its non-performing loan (NPL) from over two per cent to about 1.8 per cent year-to-date (YTD).

This was disclosed during an interaction with business editors last week as part of its activities marking its 65 years of supporting the country’s economy, especially the industrial sector.

The number is a significant improvement on its N103 billion SME loan target for the year, the executives told the media. Last year, they disclosed, the bank similarly expanded the SME portfolio by N64 billion, with a total of 1.25 million SMEs benefiting. The actual disbursed in the previous year was close to 20 per cent above its target (N54 billion).

In the past 65 years, the officials said, the economy is replete with millions of jobs saved and hundreds of companies revived just as they committed to continued support for the economy and industrial sector, which is the backbone of the economy.

Its Managing Director, Dr Olasupo Olusi, described the past 65 years of the banks’ existence as a period of “empowering Nigeria’s industrial growth, fostering innovation and contributing to the socioeconomic development of our great country”.

“Reflecting on our journey, I am reminded of the visionary leaders who laid the foundation of this institution and the dedicated professionals who built on that vision with unwavering commitment. We are indeed grateful for the legacies bequeathed to us, which we build on to catalyse industrial growth and engender developmental impact,” he said.

Starting as the Investment Company of Nigeria (ICON), a name changed to the Nigerian Industrial Development Bank (NIDB) in 1964 and finally to the BoI in 2001, the bank has evolved increasing its share capital to N500 billion last year after a series of successful fundraising, which demonstrated the confidence in its management and operational model.

In its evolution, the MD said, the bank has factored into operations the changing needs of the market and businesses, promoting job creation and facilitating inclusive economic growth. Its robust past, he noted, is not only a reference but also a source of inspiration for building the future, Olusi said, while quoting Nelson Mandela.

“In recognition of the pivotal role of MSMEs in national economic development, the bank in 2014 engaged 122 SME consultants and entered strategic alliances with 10 SME-friendly commercial banks. Today, we have over 300 business development service providers supporting SMEs nationwide. The bank also has a robust on-lending programme with various financial institutions, including microfinance banks and fintechs”, he said.

With a presence in 33 states and raising successfully $5 billion from the international capital markets through Eurobonds, loan syndications and green finance instruments, he said, BoI is poised to increase its financial support to deserving operators to drive the next phase of growth.

This year, BoI introduced six thematic focus areas to drive developmental impact. The areas of focus that are expected to guide BoI’s financing interventions are gender, climate and sustainability, youth and skills, digital economy and infrastructure. The themes stem from their importance to Nigeria’s overarching development.