The Bank of Industry has resolved to explore alternative funding sources to aid the realisation of its key mandates following pressure on government resources.
The bank noted that the decision was to make impactful contributions to the Federal Government’s National Industrial Revolution Plan as well as serve the underserved, particularly the Small and Medium Enterprises.
The Managing Director, BoI, Mr. Rasheed Olaoluwa, said the bank was also developing strategies to improve stakeholders’ access to funds.
He said, “The BoI is trying to achieve a balance in its functions as a development finance institution in terms of delivering social impact and maintaining a sustainable loan infrastructure.
“We are confident that key shareholders in the NIRP initiative, including the Ministry of Finance and the Central Bank of Nigeria, will continue to support the bank with some equity injection, considering the fact that there is a lot of demand on government’s resources.
“Consequently, we are exploring alternative modes of funding such as the continuation of sector-specific intervention funds by the CBN, ministries of Agriculture, Solid Minerals and others; managed funds from various state governments and foundations; and long-term loans at very low interest rates from multi-lateral as well as international development institutions.”
Olaoluwa said that the BoI would also explore domestic and international bond issuance and other sustainable annuity sources in the medium to long-term.
According to him, in pursuance of the transformation agenda, the bank is focusing on helping to promote employment generation and wealth creation through access to development funds.
“We have met with the Business Support Firms to address the large percentage of substandard loan applications as we have discovered that a good way out is to engage with the BSFs, which will receive the applications and help review them as they better understand how a bankable proposal should look like,” he said.
The managing director added that the SME sector would receive adequate attention from the bank so that their funding challenges could be addressed.
“As you are aware, the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, is leading the efforts to industrialise Nigeria and to create millions of jobs in the process. At BoI, we are passionate about these objectives,” he said.
