BoI Disbursed N127b Loans In 2014 | Independent Newspapers Limited
Newsletter subscribe

News, Slider

BoI Disbursed N127b Loans In 2014

Posted: May 18, 2015 at 7:55 am   /   by   /   comments (0)


By Sylvester Enoghase, 



The Bank of Industry (BoI), on Saturday said it disbursed loans valued at N127 billion in 2014, bringing to N781 billion, the value of loans to Small, Medium and Large Enterprises as at December 31, 2014.

The bank also explained that in its bid to address challenges of access to credit for Small and Medium Enterprises (SMEs) and to quicken the credit delivery process, it signed service agreements following which it engaged 122 Business Development Service Providers (BDSPS).

This, it explained, is part of efforts to increase the capacity of beneficiary SMEs to apply for and secure financing with less stress.

Speaking at a media parley to commemorate one year of BoI’s impact in the industrial and SMEs sectors, its Managing Director and Chief Executive, Rasheed Olaoluwa, said the bank’s total loan disbursement in 2014 represented an increase of about 9.3 per cent over that of 2013.

He said BoI is at the moment focusing on the real sector of the economy with the introduction of the Cottage Agro Processing Fund and Nolly Fund to support and ensure operators in the agric and entertainment industries respectively thrive.

Speaking further, the MD pointed out that the service providers were engaged to help the BoI identify credible SMEs that require finance. They were also engaged to develop “bankable business plans and proposals for the SMEs to facilitate their access to finance guided BoI’s Risk Acceptance Criteria (RAC), and ensure that a sound business model is developed and presented; collaborating with BoI to conduct periodic post –finance monitoring of SMEs.”

Olaoluwa also noted the improvement in BoI’s debt recovery activities, in the past one year, following the establishment of a Loan Recovery Department, which led to the reduction in non-performing loans to 14 per cent last year.

Specifically, he said BoI recovered N2.9 billion bad debts in 2014 using all available legal means, just as he noted that its operation during the period under review was guided by its five-year strategy plan (2015-2019) aimed at making BoI Africa’s leading development bank with global best practices.

According to him: “Our mission is to help in transforming Nigeria’s industrial sector by providing financial and business support services.”

Making a presentation on BoI’s SME operation profile in the last one year, the bank’s Executive Director in charge of Small and Medium Enterprise, Waheed Olagunju, said its risk assets in that sector created about 1.8 million jobs by the end of 2014. The impact, he said, would have been more, if the bank had more funds to make available to operators in the SMEs sector.

According to him, BoI has increased the number of states offices from seven to 14 to ensure proximity to more small-scale operators in the country

He also explained that the bank has set a N15 billion loan target to SMEs in 2015 so as to create additional jobs.

Olagunju announced that BoI has signed agreements with 10 SME-friendly commercial banks on concessional loans at the rate of six per cent above the 13 per cent Monetary Policy Rate (MPR) set by the Central Bank of Nigeria (CBN).