Ahamefula Ogbu and Yemi Akinsuyi
23 December 2011
As part of efforts to ensure adequate funding for the nation’s industrial sector, President Goodluck Jonathan has ordered the recapitalisation of the Bank of Industry ((BoI) and directed that its equity be opened up to attract investors.
He also stated that with a well positioned and recapitalised BoI, the re-inventing of Nigeria’s re-industrialisation would get a quantum leap and promised that his administration would give the bank and its management the needed support as the result of their operations would lead to wealth and job creation.
President Goodluck Jonathan, who gave this directive, while commissioning the magnificent BoI 12-floor building in Abuja, said there was urgent need to open up the bank’s equity to enable it link up with institutional investors, who would buy into its programmes with a view to increasing the capital base.
“In the light of the concept and purpose of the projects I have the honour to commission today and in view of the diligent and timely completion of the projects in a cost effective manner, I am persuaded of the “can do spirit” of the Nigerian and that we have all it takes to achieve the rapid transformation of our dear nation.
“It is on the basis of this belief that I have directed that from next year, our national budgets must be fully implemented to enable us attain the objectives of inclusive growth and job creation within a framework of fiscal balance.
“I seize this opportunity to thank the BOI’s domestic and foreign development partners in the private and public sectors who have supported the institution to accomplish these successes, especially in entrepreneurship and private sector development. The bank certainly earned your confidence to encourage you to rally round it to the benefit of its customers,” he said.
The President said he had directed the Governor of Central Bank of Nigeria (CBN), Mallam Lamido Sanusi, and the Coordinating minister of the Economy and Minister of Finance, Ngozi Okonjo-Iweala, to meet with the Minister of Trade and Investment, Dr. Olusegun Aganga, with a view to coming up with modalities which would enable the Federal Government increase the capital base of Bank of Industry.
Jonathan said the move to recapitalise the bank was not to only improve its capacity to fund the country’s industrial sector, but to also align its operational practices with the international best practices.
He said: “I have already directed Ministry of Finance and CBN Governor to work with the Minister of Trade for Investment to make sure that the Bank of Industry is fully capitalised. If our vision and hope that Nigeria will play big globally by 2020 will be realised, we need the bank that will be so dedicated to funding industrial sector, especially agriculture.”
The President pledged that the Federal Government on its part will continue to give the BOI all the support it needs to play a pivotal role in the industrialisation of Nigeria. We shall ensure that the bank corporate governance practices, operational policies and procedures are in line with international best practices to enable it attain the top radius needed to mobilise the much needed financial and technical resources we need to fast-track the transformation of our industrial sector.
He said: “In this regards, we shall accelerate the recapitalisation of BOI and open up its equity to development, focus foreign institutional investors who will maintain bank development mandate. This has become imperative since due to other competing priority, particularly in social services that lack the capacity to generate income, the government alone cannot meet the financial investment require of the bank.”
The president said the country needed a virile and functioning BOI in view of his administration’s emphasis on agriculture and agro-businesses, stressing that the country had embarked on the process of reinventing agriculture and that everybody on the value chain would need flexible financial services, which the bank only could offer.
“My charge to the bank, and indeed the Nigerian financial system, going forward, is to lead the financing of the re-industrialisation of country not only for economic development, but also in the light of the fact that globalisation has placed great premium on manufacturing, we must as a nation respond to some of the major global strands shaping the global competitive contest and therefore the possibility for our manufacturing,” he said
Speaking earlier, Managing Director of BoI, Ms. Evelyn Oputu, had said the bank was established in October 2001 to provide financial assistance to small, medium and large scale enterprises as well as carrying out expansion, diversification and modernisation of ailing industries.
According to her, the bank has in the last 10 years of its operations approved 1,435 loans and investment totalling N165.74 billion with considerable developmental impact on the Nigerian economy.
“It is gratifying to note that in the last ten year BOI despite our challenging environment, recorded appreciable stride in pursuit of its mandate and its evolution into a strong, dynamic and flexible development finance institution (DFI) that proactively responds to the needs of entrepreneurs in Nigeria,” Oputu stressed.
On his part, Aganga said his ministry, along with all its agencies would not leave any stone unturned in facilitating the transformation of Nigeria, the industrial sector as part of efforts to diversify the Nigerian economy.
While commending the giant stride the bank has recorded since inception, the minister noted that BOI had not only responded proactively to the funding needs of enterprises, it had also worked with them to enhance their productivity and created employment by removing barriers to enhanced productivity.
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