The Bank of Industry has successfully raised a substantial new funding package worth €2bn through global loan syndication, to improve its financial capacity and support a wide range of development initiatives.
The initiatives include infrastructure projects, small and medium-sized enterprise growth, and industrial diversification in key economic sectors.
The BOI Managing Director, Olasupo Olusi, disclosed this at a media parley to commemorate the 65th anniversary of the bank on Thursday in Lagos.
He said the amount is part of over $5bn raised from the international capital markets through Eurobonds, loan syndications, and green finance instruments since 2017 to expand its national footprint.
He said, “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 N250bn to put the bank in a position to address its mandate better; this was subsequently increased to N500bn 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 on-lending program with various financial institutions, including microfinance banks and fintechs.
“In 2017, BOI commenced raising funds on the international market with a $750 million AFREXIM loan. Since then, we have successfully raised over $5bn from the international capital markets through Eurobonds, loan syndications, and green finance instruments. This month, we concluded a global loan syndication that raised nearly €2bn which is the largest fundraising in BOI’s history and indeed the largest syndication in the history of African DFIs.”
He stressed that the bank has engaged in key strategic partnerships with relevant agencies to empower Nigeria’s industrial growth, foster innovation, and contribute to socioeconomic development.
On the execution of the N200bn FGN MSME Intervention Fund, Olusi said disbursements are ongoing to approved beneficiaries.
He added that the bank has set an ambitious target to ensure that its services get to the 36 states of the federation by first-quarter of 2025
In addition, the bank said its non-interest banking service is also coming up soon.
“In November 2023, the Federal Government of Nigeria appointed BOI as the executing agency for the N200bn FGN MSME Intervention Fund, which includes an N50bn Presidential Conditional Grant Scheme, an N75bn Manufacturing Sector Fund, and an N75bn MSME Intervention Sector Fund. This program is currently being disbursed and there are numerous stories on the impact on private enterprises.”
Continuing, he said, “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 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 our product offerings with plans to scale up Non-Interest Banking, Export Credit Agency and Supply Chain Finance to provide adequate financing to various economic clusters, recognising our national diversity to drive economic growth.
“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 an N50bn 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.”