Managing Director Bank of Industry BOI DR. Olasupo Olusi has said that since the Central Bank of Nigeria has said that it has relinquished the intervention in the economy, application for BOI funding has jumped to over N1trillion. He said the bank being the foremost development bank in Africa is doing its best to cope with the surge in demand for its service. According to him the bank has raised the sum of two billion euro to enable it meet the growing demand of small and medium enterprises financing in the country. Speaking at a press conference to herald the 65th anniversary of BOI, Dr. Olusi said “We are indeed grateful for the legacies bequeathed to us, which we build on to catalyse industrial growth and engender developmental impact. Starting from our humble beginnings as the Investment Company of Nigeria (ICON) in 1959, to the Nigerian Industrial Development Bank (NIDB) in 1964, and finally our transformation into the Bank of Industry in 2001, the bank has continuously evolved to meet the changing needs of Nigeria’s economy. In doing so, we have positively impacted the lives of countless Nigerians by supporting businesses, promoting job creation, and facilitating inclusive economic growth.
“As Nelson Mandela aptly noted “The past is not merely a place of reference but also a source of inspiration for building the future”. This principle guides us as we reflect on our history to chart the course ahead in continuing impacting the lives of countless Nigerians by supporting business, promoting job creation, and facilitating inclusive
economic growth. As we mark this historic milestone, I would like to highlight some of the Bank’s key achievements over time. In 2007, BOI’s authorised share capital was increased to ₦250 billion to put the bank in a position to address its mandate better; this was subsequently increased to ₦500 billion in May 2023. 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 onlending program with various financial institutions, including microfinance banks and fintechs.
“In 2015, BOI commenced a national footprint expansion by opening eight state offices. This drive has continued through the years, and I am proud to say that today, the bank has a presence in 33 states nationwide. In 2017, BOI commenced raising funds on the international market with a US$750 million AFREXIM loan. Since then, we have successfully raised over $5 billion from the international capital markets through Eurobonds, loan syndications, and green finance instruments. This month, we concluded a global loan syndication that raised nearly 2 billion euros which is the largest fundraising in BOI’s history and indeed the largest syndication in the history of African DFIs. One key thread in achieving these milestones through the years is our partners. BOI has established strategic partnerships with key local public and private institutions, as well as global financial and multilateral institutions to enable the bank to fulfill its mandate effectively. BOI partners with State Governments, and Foundations to establish the “Matching Fund” scheme.
“We also have partnerships with trade associations, such as the National Association of Small and Medium Enterprises (NASME), Nigerian Association of Small-Scale Industrialists (NASSI), and Manufacturers Association of Nigeria (MAN), to deepen real sector financing. BOI recently signed a partnership agreement with SMEDAN to provide Nano and Micro Enterprises in Nigeria with a ₦1 billion fund at a single-digit interest rate. We have partnerships with several other public agencies like NCDMB, to support specific sectors. In November 2023, the Federal Government of Nigeria appointed BOI as the executing agency for the ₦200 billion FGN MSME Intervention Fund, which includes a ₦50 billion Presidential Conditional Grant Scheme (PCGS), a ₦75 billion Manufacturing Sector Fund, and a ₦75 billion MSME Intervention Sector Fund. This program is currently being disbursed and there are numerous stories on the impact on private enterprises. Our strategic partnerships also extend to numerous organisations, such as African Development Bank (AfDB), the African Finance Corporation (AFC), Investment Climate Reform (ICR) initiative, the African Guarantee Fund (AGF), the Multilateral Investment Guarantee Agency (MIGA), the United States Export-Import Bank (USEXIM), the International Finance Corporation (IFC), etc. and several others.
“In the last twelve months, we have also revised our strategy to focus on impact and introduced various strategic initiatives in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda and in response to emerging macroeconomic issues. In 2024, we introduced our six thematic focus areas to drive developmental impact —Gender, Climate and Sustainability, Youth and Skills, Digital Economy, and Infrastructure. These themes stem from their importance to Nigeria’s overarching development and will guide our financing interventions in the Nigerian economy. This year, we launched the Rural Areas Program on Investment for Development (RAPID) program, to promote financial inclusion and support the development of micro and small businesses in rural Nigeria, focusing on youth and women. We are improving on our product offerings with plans to scale up Non-Interest Banking (NIB), Export Credit Agency (ECA) and Supply Chain Finance (SCF) with a view to provide adequate financing to various economic clusters, recognising our national diversity to drive economic growth.
“In alignment with Nigeria’s sustainability agenda, BOI has also launched a climatefocused initiative. As a testament to this, BOI has been nominated as a Direct Access Entity by the Nigeria Climate Change Commission (NCCC) to access financing for climate projects through the Green Climate Fund (GCF). This designation empowers BOI to spearhead climate initiatives and support sustainable development efforts in Nigeria. In October 2024, the Bank held its first Inaugural Annual Lecture Series & launched two publications, the BOI Journal of Development Finance (Technical) and the BOI Journal of Development Review (Non-Technical); as well as a price intelligence platform for real-time monitoring of price variations of food commodities across the country. This platform seeks to enhance transparency and accountability in the food commodity market by providing real-time insights into price trends, stabilising markets, protecting consumers, and informing policy decisions. Beyond the Bank’s efforts, we have also started to implement steps to ensure our subsidiaries are key contributors to national impact. The BOI board approved a ₦50 billion recapitalisation of one of our subsidiaries ― LECON Financial Services.
“The new funding will enable LECON to support key sectors and better respond to increasing customer interest in asset acquisition through leasing as an alternative to outright purchasing equipment at a relatively lower cost and longer tenure, taking pressure off business owners. Another subsidiary of the bank, BOI Investment and Trust Company Limited (BOI-ITC), has been re-issued by the Securities and Exchange Commission (SEC), its Trusteeship Operating License. BOI-ITC will re-enter the trusteeship market, focusing on Trusts/Trusteeship Services, Consultancy, Business Advisory, Governance Advisory, and Nominee Services. We have increased the capitalization of BoI Microfinance Bank to enable it to obtain a state licence, rather than its current unit licence. Our people are at the heart of BoI’s strategy. As a result, we have prioritized staff
engagement and improved their welfare through professional development opportunities, employee recognition programs, wellness initiatives, workplace support advocates, and so on. All these efforts have not gone unnoticed. In the past year, BOI has garnered multiple awards including the EMEA Award for “Best Social Development Program in Africa” for the Investment in Digital and Creative Economy (iDICE), the SERAS Award for “Best Company in Financial Inclusion” and “Most Effective MDA/Parastatal in Sustainable Development,” and the Philips Consulting Ltd. Award for “Best Website and Overall Best Digital Presence for a Federal Parastatal.” (IoD). As we celebrate our past achievements, we also recognise the opportunities and challenges that lie ahead. We live in a time of rapid technological advancement, shifting economic dynamics, and growing environmental concerns. Looking into the future, we reaffirm our commitment to driving sustainable industrialisation, supporting clients with innovative financing solutions, expanding our partnerships, strengthening financial inclusion efforts, and working closely with government agencies to advocate for policies that foster a supportive business environment, particularly for MSMEs and start-ups, thus, building a resilient and inclusive economy.
“This anniversary is a testament not just to the longevity of our institution but also to the resilience, adaptability, and shared purpose that we carry in our mission. To our partners and stakeholders who have contributed to our journey, thank you for your passion, dedication, and belief in our vision. As we celebrate our past achievements, we also recognise the opportunities and challenges that lie ahead. We live in a time of rapid technological advancement, shifting economic dynamics, and growing environmental concerns. Looking into the future, we reaffirm our commitment to driving sustainable industrialisation, supporting clients with innovative financing solutions, expanding our partnerships, strengthening financial inclusion efforts, and working closely with government agencies to advocate for policies that foster a supportive business environment, particularly for MSMEs and start-ups, thus, building a resilient and inclusive economy. This anniversary is a testament not just to the longevity of our institution but also to the resilience, adaptability, and shared purpose that we carry in our mission”.
