The Bank of Industry (BOI), which was established by the Nigerian government to promote domestic sectors such as agriculture and finance in Nigeria, recently earmarked NGN 19.8 billion (USD 105 million) to support micro-, small and medium-sized enterprises (MSMEs). The bank has entered memoranda of understanding (MoU) with 18 state governments across the federation to promote this effort.
According to a statement attributed to Rasheed Olaoluwa, the managing director of Bank of Industry, “Before we grant a loan, the state government must recommend because we usually deal with the Ministry of Commerce in the states. So they will be the ones to recommend the applicants to us.”
Separately from this effort, the Bank already has launched a fund directed at the agricultural industry. Through this fund, applicants with business plans deemed viable receive five-year loans with annual interest rates of 9 percent.
As of December 31, 2011, BOI reported total assets of NGN 220 billion (USD 1.4 billion). More recent financial information is not publically available.
By Ananya Tiwari, Research Associate
About Bank of Industry (BOI)
The Bank of Industry (BOI) was originally incorporated in 1964 as the Nigerian Industrial Development Bank. It was restructured as BOI in 2001. BOI is a development finance institution with a mandate to promote the emergence of a competitive industrial sector in Nigeria. As of 2012, Nigeria’s Ministry of Finance holds 58.86 percent of BOI’s shares, the Central Bank of Nigeria holds 41.12 percent of BOI’s shares and private investors hold less than 1 percent. As of December 31, 2011, BOI reported total assets of NGN 220 billion (USD 1.4 billion). More recent financial information is not publically available as of 2015.
Sources and Additional Resources:
[1] Leadership, http://leadership.ng/business/401453/boi-earmarks-n19-8bn-msmes-funding-states#disqus_thread
MicroCapital, January 18, 2013: “MICROCAPITAL BRIEF: Nigeria’s Bank of Industry (BOI) to Set Up Microcredit Fund for Microentrepreneurs in Effort to Promote Financial Inclusion,” https://www.microcapital.org/microcapital-brief-nigerias-bank-of-industry-boi-to-set-up-microcredit-fund-for-microentrepreneurs-in-effort-to-promote-financial-inclusion/
MicroCapital, January 3, 2011: “MICROCAPITAL BRIEF: Savings Government of Nigerian State of Ondo and Bank of Industry (BOI) Disburse $13m to Microfinance Scheme,” https://www.microcapital.org/microcapital-brief-government-of-nigerian-state-of-ondo-and-bank-of-industry-boi-disburse-13m-to-microfinance-scheme/#more-8990
MicroCapital Universe Profile: Bank of Industry (BOI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Industry+%28BOI%29
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