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Tag: BoI

  • BoI, LCCI partner on MSMEs development

    The Bank of Industry (BoI) has reaffirmed its commitment to the development of the Micro, Small and Medium Enterprises (MSMEs) sector in enhancing sustainable economic growth.

    The acting Managing Director of BoI, Mr Waheed Olagunju, said in Lagos on Tuesday during a MSMEs forum that significant attention should be given to MSMEs to enhance their sustainability and societal impact.

    The forum was organised by BoI in partnership with the Lagos Chamber of Commerce and Industry (LCCI).

    Olagunju said that BoI would continue to support projects with potential to create significant jobs and value creation opportunities geared towards facilitating a robust and integrated economic growth.

    According to him, BoI will drive MSMEs penetration through its cluster strategy, strategic partnership with Microfinance banks and business development consultants, customer engagement and capacity building.

    He said that the bank was increasing its nationwide footprints to reach more businesses through its 21 offices located in different parts of the country.

    According to him, the bank’s strategic partnership of matching funds with various state governments, agencies and high net worth individuals is designed to support SMEs at five per cent interest rate.

    Olagunju said that BoI had N11 billion fund in its matching fund partnership with 21 state governments.

    He said that the bank was managing over 10 special funds valued at N1 trillion for Federal Government institutions and high net worth individuals under various schemes.

    Olagunju was represented by Mr Yinka Adegboye, Group Head, Strategy and Corporate Transformation of the bank.

    Also, Mr Sola Oyetayo, Chairman, Trade Promotion Board, LCCI, said that the partnership with BoI was strategic in building the capacity of MSMEs operators to the various financial opportunities and business support available in the country.

    He said that the alliance would translate to increased job creation, poverty reduction, export promotion and increased contribution to nations Gross Domestic Products (GDP).

     

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  • BoI launches N1bn solar energy fund for MSMEs

    The Bank of Industry (BoI) on Friday launched a N1 billion solar energy fund for use by Micro, Small and Medium Enterprises (MSMEs) across the country.

    The intervention fund aims at providing alternative and renewable energy for small businesses.

    Mr Waheed Olagunju, the Acting Managing Director of BoI, said at the ceremony that renewable energy would provide healthy and sustainable alternative to the use of harmful fossil fuels.

    Olagunju said the solar project would afford beneficiaries long-term cost saving advantages, especially in the absence of reliable power supply.

    He said that the cost of electricity accounted for about 40 per cent of operational expenses for most MSMEs resulting in reduced profit margins, uncompetitive and generally unsustainable ventures.

    According to him, many Nigerians and Nigerian businesses that can not afford other alternative energy sources have resorted to the use of electric generators at exorbitant costs.

    “It was estimated that in 2015, manufacturers spent as much as N3.5 trillion to generate alternative power due to the challenges in the supply of public electricity.

    “MSMEs play a major role as the engine through which most countries in the world thrive.

    “Their growth and development are crucial to the level of industrialization, modernization, income per capita, equitable distribution of income, welfare and quality of life enjoyed by the citizenry.

    “Consequently, the performance of the MSME sub-sector is closely associated with the development of a nation.

    “In Nigeria, the growth of this sector has been hampered over the years by a combination of factors, one of which is access to reliable electricity.

    “For Nigeria to, therefore, achieve sustainable and inclusive development, there is an urgent need to substantially increase the supply of modern and affordable energy services from sources that are affordable, accessible and environmentally friendly,’’ he said.

    Olagunju said that it was important to support the provision of sustainable and reliable energy for MSMEs which was the reason BoI decided to provide the solar energy Fund to MSMEs.

    “The Bank is already playing an active role in lighting up and powering Nigeria through the provision of solar energy solutions for rural communities.

    “We have successfully deployed solar solutions worth N240 million to six off-grid communities, one each in Niger, Osun, Gombe, Anambra, Edo and Kaduna States, under its pilot scheme.

    “These communities, with an average of 200 homes each, previously had no access to electricity, but since the provision of clean, reliable and sustainable solar electricity, the lives of the indigenes of these communities have changed significantly.

    “The provision of solar electricity has reduced energy costs, created more micro businesses, improved healthcare and quality of education, and generally provided a new lease of life for indigenes of these otherwise unserved communities.

    “This initiative is being replicated in other rural communities in collaboration with our development partners, UNDP and relevant state governments.

    “It is now being scaled up to provide energy for MSMEs across the country commencing with the N1.0 billion Solar Energy Fund that we are here to launch,” he said.

     

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  • BoI to finance only NAFDAC certified products

    The Bank of Industry (BoI) on Friday said that it would not finance products not certified by the National Agency for Food and Drug Administration and Control (NAFDAC).

    The Acting Managing-Director of the bank, Mr Waheed Olagunju, made this known in Lagos during the signing of a Memorandum of Understanding (MoU) between the bank and NAFDAC.

    “It is only certified products that can be sold in the market profitably. It is important for BoI customers to be accredited.

    “Their accreditation by NAFDAC shows that they conform to best manufacturing practices.

    “BoI is supporting many local pharmaceutical companies under Manufacturers Association of Nigeria to export their products because they meet NAFDAC and World Health Organisation (WHO) standards,” Olagunju said.

    He said that the synergy would give BoI access to NAFDAC’s database to ascertain certified products before financing them.

    According to Olagunju, the synergy will facilitate economic growth by ensuring that Small and Medium Enterprise (SMEs) conform to best production standards.

    Olagunju said that both organisations would leverage on their local and international development partners for the success of the partnership.

    Mrs Yetunde Oni, Acting Director-General, NAFDAC, said that the collaboration would entrench Federal Government’s agenda on promoting non-oil sector of the economy.

    She said that the partnership would boost productivity of SMEs by ensuring granting of marketing authorisation to products that would adopt good manufacturing practice.

    Oni said that partnership with BoI would enable NAFDAC to reach the grassroots, support more entrepreneurs, especially SMEs, toward aiding business growth.

    “The collaboration is a win-win for both parties. While BoI provides machinery and technical support, NAFDAC will furnish BoI with information vital for decision-making toward economic development,” she said.

     

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  • BoI disburses N3.1bn to 14 microfinance banks -MD

    BoI disburses N3.1bn to 14 microfinance banks -MD

    The Bank of Industry (BoI) says it disbursed N3.1 billion to 14 microfinance banks under its Bottom of Pyramid (BOP) scheme.

    The scheme is among others designed to enhance the financial inclusion of micro entrepreneurs in the country.

    Mr Waheed Olagunju, the Acting Managing Director of the bank, made the disclosure at the presentation of cheques to LAPO Microfinance Bank, Fortis Microfinance Bank and Lotus Capital Ltd in Lagos on Friday.

    The Bottom of Pyramid scheme is an on-lending initiative using the services of microfinance banks as channels for credit delivery to the under-served and under-banked micro-entrepreneurs.

    Olagunju presented a cheque each of one billion naira to LAPO Microfinance Bank, N500 million to Fortis Microfinance Bank and N500 million to Lotus Capital.

    He said that the bank had previously disbursed N1.1 billion to 11 microfinance banks under the scheme.

    According to him, the bank has approvals of N1.13 billion for nine other microfinance banks presently undergoing disbursement process.

    Olagunju said BOP was designed to leverage on the spread and penetration of participating financial institutions across the country to stimulate economic activity among micro entrepreneurs.

    “We also decided to work with microfinance banks because lending to micro enterprises requires special skills that they have acquired,” Olagunju said.

    He said the scheme was aimed at poverty reduction through job and wealth creation focusing on rural micro-enterprise operators with a view to extending financial inclusion to them.

    The managing director said that activities to be financed include agriculture, manufacturing, food products, beverages, solid minerals, services and artisanal activities.

    Olagunju said that the scheme aligns with government’s employment and wealth creation objectives of the National Enterprise Development Programme (NEDEP).

    He urged the banks to utilise the partnership and opportunity to lift Nigerians out of poverty.

    Mrs Hajara Adeola, Managing Director, Lotus Capital, said that the partnership would boost economic activities and lead the country out of recession.

    Mr Godwin Ehigiamusoe, Managing Director, LAPO Microfinance Bank, said that economic revitalisation would take place if large numbers of citizens at the bottom of the ladder were engaged.

    He noted that the partnership would enhance productivity of the Micro, Small & Medium Enterprises sector while ensuring their contribution to the nation’s Gross Domestic Product.

  • Adeosun, Emefiele back Senate’s proposed scrapping of BoI

    …as BoI kicks

    The Minister of Finance, Mrs. Kemi Adeosun and the Governor, Central Bank of Nigeria, CBN, Mr. Godwin Emefiele have thrown their weights behind calls in some quarters especially the National Assembly to scrap the Bank of Industry (BoI) to be replaced with a National Development Bank (NDB).

    However, in a swift reaction, the BoI kicked against the move. Speaking Monday at a public hearing organised by the Senate Committee on Banking, Insurance and Other Financial Institutions on the establishment of the NDB, the Acting Managing Director, BoI, Mr. Waheed Olagunju, said the Bol plays a distinct role which already encapsulated the role of the proposed NDB.

    A bill seeking to establish the NDB had passed second reading in the Senate on October 12.

    Titled: ‘A Bill for an Act to establish the National Development Bank, 2015’, and sponsored by Senator Ibrahim Gobir, it seeks to repeal the BoI, the Bank for Commerce and Industry Act and the National Economic Reconstruction Fund Act.

    The bill further seeks to bring the total assets of the organisations under one body to be called the National Development Bank.

    Olagunju stated that what was needed was more funding of the bank by the Federal Government so as to increase its support to the real sector rather than duplicate functions with the establishment of another bank with a similar purpose.

    In his words: “We are of the opinion that the BoI, as presently constituted, is fulfilling the mandate envisaged in the proposed legislation by supporting genuine entrepreneurs. Therefore, it should be left to continue its operations as it is. The merger envisaged in the proposed bill has already taken place.

    “The BoI should be provided with more capital to be able to further support the real sector instead of duplicating functions by creating new development finance institutions, bearing in mind the failure of similar DFIs in the past, such as the NBCI, NERFUND, People’s Bank, Community Banks, etc.”

    He added, “We advise that the National Assembly should support industrialisation by enacting legislation that will help create an enabling environment for business to thrive, such as an amendment to the Land Use Act, tax incentives for SMEs and establishment of industrial parks.

    “This will substantially address the demand challenges of finance for SMEs in Nigeria, as vagaries of the business environment have been making the sector unattractive to private and public lenders.”

    However, Adeosun, who was represented by a director in Ministry of Finance, Christopher Gabriel, said the ministry strongly supported the bill, adding that the proposal was in tandem with the economic reconstruction efforts of the Federal Government.