What House Committee on Industry tells BOI

Business News

By Gilbert Ekugbe

“The Bank of Industry, BOI has a crucial role to play in revamping industries that have gone moribund as a result of inadequate funding to carry out their operations.”

This statement was made by Abubakar Moriki, House Committee Chairman, on Industry, Trade and Investment during an oversight function to some of the industries supported by BOI in Lagos.

From left: Waheed Olagunju, Executive Director, SME, BOI in hand-shake with Abubakar Moriki, House Committee Chairman, on Industry, Trade and Investment during an oversight function by the Committee to the bank in Lagos.

“The committee was here in Lagos to oversight the activities and operations of BOI. We came to interface with them and also to know their challenges. We have been briefed of the bank’s historical evolution and its equity structure, balance sheet over the years and indeed, I will say at this juncture that as a typical development finance institution, the bank is doing very well,” he said.

Waheed Olagunju the Executive Director, SME, BOI, responded on behalf of Olukayode Pitan, Managing Director, BOI,  and said: “More than 96 percent of its risk assets are performing, maintaining that the bank closed the financial year of 2016 with a Non Performing Loan (NPL) ratio of 3.7 percent which he described as the lowest in the country.

“The industry average of that year went up to about 15 percent put against the Central Bank of Nigeria’s (CBN’s) threshold of 5 percent.

He said so far, with the support of the federal government and the National Assembly, the bank was able to guarantee a line of credit worth over $500 million from the Africa Development Bank (AfDB) that required a sovereign guarantee.

“This is a line of credit approved by the AfDB which we have to repay and this is why whenever we grant loans, they will be loans of a very high probability of repayment. We want to appeal to our current and prospective customers to please see things from our own point of view. We are always ready to partner serious minded entrepreneurs that adhere to global best practices,” he said.

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