Bank of Industry raises $5 billion to support MSMEs, others

The Bank of Industry (BoI), has garnered over $5 billion from the international capital markets through Eurobonds, loan syndications, and green

finance instruments, the Managing Director/CEO of the Development Finance Institution, Dr. Olasupo Olusi, has said.

Olusi, who made this known yesterday at a press briefing heralding the bank’s 65th year in operation, also said that this month, BoI “concluded a global loan syndication that raised nearly two billion euros which in his words, “is the largest fundraising in BoI’s history and indeed the largest syndication in the history of African DFIs.

“As we mark this historic milestone,” he continued, “I would like to highlight some of the bank’s key

achievements over time.”

Olusi, who assumed the headship of bank about a year ago, went into memory lane to itemise the salient accomplishments that have laced the bank’s trajectory since its establishment in 1959.

He said BoI’s authorised share capital was increased to N250 billion in 2017 so as to put the bank in a position to address its mandate better, adding that this was subsequently increased to N500 billion in May 2023.

He said given the pivotal role of Micro Small and Medium Enterprises (MSMEs) in national economic development, BoI in 2014 engaged 122 Small and Medium Enterprises (SME)consultants and entered strategic alliances with 10 SME-friendly commercial banks, saying that as of today, BoI has 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,” he said.

Amongst its other milestone accomplishments, Olusi said,  BOI has its presence in 33 states nationwide.

The BOI boss admitted that the DFI had leveraged on partnerships t for its accomplishments .

As he put it: “One key thread in achieving these milestones through the years is our partners.

BoI has established strategic partnerships with key local public and private institutions, as well as global financial and multilateral institutions to enable the bank to fulfill its mandate effectively.”

Olusi admitted that BOI partners with state governments, and Foundations to establish the “Matching Fund” scheme.

“We also have partnerships with trade associations, such as the National Association of Small and Medium Enterprises (NASME), Nigerian Association of Small-Scale Industrialists (NASSI), and Manufacturers Association of Nigeria (MAN), to deepen real sector financing.”

He said BOI recently signed a partnership agreement with SMEDAN to provide Nano and Micro Enterprises in Nigeria with a ₦1 billion fund at a single-digit interest rate, in addition to partnerships with several other public agencies like Nigeria Content Development and Monitoring Board (NCDMB) to support specific sectors.

He said in November last year, the Federal Government appointed BOI as the executing agency for the ₦200 billion FGN MSME Intervention Fund, which includes a ₦50 billion Presidential Conditional Grant Scheme (PCGS), a ₦75 billion Manufacturing Sector Fund, and a ₦75 billion MSME Intervention Sector Fund.

This program, he said, is currently being disbursed, saying there are numerous stories on the impact on private enterprises.

Olusi said the bank’s strategic partnerships also extend to numerous organisations, such as the Africa Development Bank (AfDB), the African Finance Corporation (AFC), Investment Climate Reform (ICR) initiative, the African Guarantee Fund (AGF), the Multilateral

Investment Guarantee Agency (MIGA), the United States Export-Import Bank (USEXIM), the International Finance Corporation (IFC), among  several others.

He said BOI has revised its strategy to focus on impact and introduced various strategic initiatives in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda and in response to emerging macroeconomic issues.

In 2024, he said the bank introduced six thematic focus areas to drive developmental impact in the following areas—Gender, Climate and Sustainability, Youth and Skills, Digital Economy, and Infrastructure.

These themes, he said, stemmed 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 (RAPID) program, to promote financial inclusion and support the development of micro and small businesses in rural Nigeria, he said, focusing on youth and women.

In addition, he said, the bank is focused on improving “on our product offerings with plans to scale up Non-Interest Banking (NIB), Export Credit Agency (ECA) and Supply Chain Finance (SCF) with a view to provide

adequate financing to various economic clusters, recognising our national diversity to drive economic growth.”

In alignment with Nigeria’s sustainability agenda, Olusi said, BOI has also launched a climate- focused initiative. As a testament to this, BOI has been nominated as a Direct Access Entity by the Nigeria Climate Change Commission (NCCC) to access financing for climate projects through the Green Climate Fund (GCF).

This designation, he revealed, has empowered BOI to spearhead climate initiatives and support sustainable development efforts in Nigeria.

In October 2024, the Bank held its first Inaugural Annual Lecture Series & launched two publications, the BOI Journal of Development Finance (Technical) and the BOI Journal of Development Review (Non-Technical); as well as a price intelligence platform for real-time monitoring of price variations of food commodities across the country.

He said this platform seeks to enhance transparency and accountability in the food commodity market by providing real-time insights into price trends, stabilising markets, protecting consumers and informing policy decisions.

Beyond the Bank’s efforts, we have also started to implement steps to ensure our subsidiaries become key contributors to national impact.

He said the BOI board approved a ₦50 billion recapitalisation of one of its subsidiaries ― LECON Financial Services, saying 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, thereby taking pressure off business owners.

Another subsidiary of the bank, BOI Investment and Trust Company Limited (BOI-ITC), has been re-issued by the Securities and Exchange Commission (SEC), its Trusteeship Operating License. BOI-ITC will re-enter the

trusteeship market, focusing on Trusts/Trusteeship Services, Consultancy, Business Advisory, Governance Advisory, and Nominee Services. We have increased the capitalization of BoI Microfinance Bank to enable it to obtain a state licence, rather than its current unit licence.

Our people are at the heart of BoI’s strategy. As a result, we have prioritized staff engagement and improved their welfare through professional development opportunities, employee recognition programs, wellness initiatives, workplace support advocates, and so on.

All these efforts have not gone unnoticed. In the past year, BOI has garnered multiple awards including the EMEA Award for “Best Social Development Program in Africa” for the Investment in Digital and Creative Economy (iDICE), the SERAS Award for “Best Company in Financial Inclusion” and “Most Effective MDA/Parastatal in Sustainable Development,” and the Philips Consulting Ltd. Award for “Best Website and Overall Best Digital Presence for a Federal Parastatal.” (IoD).

As we celebrate our past achievements, we also recognise the opportunities and challenges that lie ahead. We live in a time of rapid technological advancement, shifting economic dynamics, and growing environmental concerns. Looking into the future, we reaffirm our commitment to driving sustainable industrialisation, supporting clients with innovative financing solutions, expanding our partnerships, strengthening financial inclusion efforts, and working closely with government agencies to advocate for policies that foster a supportive business environment, particularly for MSMEs and start-ups, thus, building a resilient and inclusive economy.

This anniversary is a testament not just to the longevity of our institution but also to the resilience, adaptability, and shared purpose that we carry in our mission.

To our partners and stakeholders who have contributed to our journey, thank you for your passion, dedication, and belief in our vision.

To the board members, executive management, and bank staff, your diligence and hard work are deeply appreciated.

As we embark on the next chapter, I am confident that together, we will continue to surpass limitations, create new opportunities, and build a brighter future for Nigeria.

Thank you all for being a part of this celebration. Here is to our continued success and impact for many more years to come.

Source: The Nation