By Paul K Adegboyega
In 2024, the Bank of Industry (BOI) reached important milestones under the Dr. Olasupo Olusi-led management, reinforcing its status as Nigeria’s leading development finance institution. These achievements highlight BOI’s commitment to economic stability, business funding, and addressing social needs across the country. During the year, the bank made progress on its core mandate, consolidated on current programmes and projects, exploited new opportunities and became a strong anchor for the Tinubu administration.
A key initiative was the establishment of a N200 billion fund to support micro, small, and medium enterprises (MSMEs) across Nigeria. Central to this effort is the Presidential Conditional Grant Scheme (PCGS), which provides grants of N50,000 to nano-businesses, particularly focusing on empowering youth and women in all 774 local government areas. With the aim of assisting over 1,000 beneficiaries in each area, this initiative promotes economic self-reliance and poverty reduction. Given that MSMEs account for nearly half of Nigeria’s GDP and employ over 80% of the workforce, this funding is expected to significantly enhance the livelihoods of many Nigerians.
Building on this momentum, BOI achieved a record profit of N153.81 billion in 2023, marking a 117.69% increase from the previous year. This profit surge facilitated the creation of approximately 2.2 million jobs across Nigeria, reflecting BOI’s strategic focus on empowering small businesses in sectors such as manufacturing, agriculture, and technology. This job growth aligns with the Federal Government’s vision of expanding opportunities for Nigerians through robust public-private partnerships.
Additionally, BOI invested N2 billion in Imose Technologies, a leading Nigerian manufacturer of laptops, tablets, and smartphones. This funding aims to enhance local production, reduce reliance on imports, and create local job opportunities, thereby supporting the development of a competitive tech industry. By fostering industrial self-reliance and technological innovation, BOI is contributing to a more resilient and sustainable economy.
In its continued effort to empower businesses, BOI launched a dedicated portal for its N75 billion MSME Intervention Fund. This fund is designed to assist 75,000 small and medium-sized enterprises by offering accessible loans at favorable interest rates, allowing these businesses to stabilize and grow. By addressing gaps in affordable financing, BOI helps companies manage operational challenges and invest in innovation, furthering its mission of sustainable economic development.
To strengthen Nigeria’s position in the global market, BOI has partnered with the International Finance Corporation (IFC) to enhance access to finance for export-oriented businesses. This collaboration provides essential financial support, allowing Nigerian enterprises to compete internationally and contributing to economic diversification. By improving access to export credit and facilitating growth funding, BOI and IFC are creating competitive advantages for Nigerian businesses on the global stage.
In a landmark achievement, BOI successfully raised €1.43 billion through a historic global loan syndication, surpassing its target and establishing a benchmark for Nigerian financial institutions. This significant funding enables BOI to provide crucial capital for growth, positioning the bank as a pillar for development across key sectors such as manufacturing and agriculture. The influx of capital is expected to stimulate job creation and attract further foreign investment.
The bank also invested N2 billion in Supreme Meat, a prominent local company dedicated to meat production, reinforcing its commitment to food security and reducing reliance on imports. This investment aims to stabilize food prices and enhance job opportunities in Nigeria’s agro-industrial sector, promoting a resilient food supply system and contributing to national food security goals.
In response to rising inflation, BOI launched a palliative food program targeting vulnerable families affected by economic challenges. This initiative distributes essential food items to underprivileged households, addressing immediate food insecurity while supporting long-term community resilience. Such programs underscore BOI’s commitment to improving the well-being of Nigerians while promoting sustainable growth.
In 2024, BOI also made strides in advancing digital literacy and rural financing through partnerships, notably with the African Development Bank. These initiatives aim to equip Nigerian youth with essential tech skills and provide resources to boost rural economies. The RAPID Fund was established to address the unique financial challenges faced by rural enterprises, fostering growth and sustainability in these communities. By promoting digital literacy and supporting rural financing, BOI is paving the way for a more equitable economic landscape.
Finally, Fitch Ratings, a leading global credit rating agency, affirmed BOI’s national rating at ‘AAA(nga)’, reflecting the bank’s improved asset quality and profitability. This recognition enhances confidence in BOI’s ability to support sustainable growth amidst economic challenges. The upgrade aligns with BOI’s strategic investments in key sectors, including MSME support and digital literacy, positioning the bank as a vital catalyst for economic development. Furthermore, this upgrade facilitates greater access to low-interest financing, strengthening BOI’s role in Nigeria’s economic revitalization.
Through these transformative achievements, the Bank of Industry is showcasing its unwavering commitment to fostering inclusive and sustainable growth across Nigeria. By strategically investing in initiatives that support MSMEs, boost job creation, and enhance economic stability, BOI is solidifying its role as a cornerstone of Nigeria’s development finance landscape.
*Adegboyega is a public affairs analyst.
