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Bank of Industry records N2.3trn profit

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Abuja,  May 19, 2023:The Bank of Industry (BoI) recorded N2.3 trillion profit before tax under President Muhammadu Buhari, Chairman Board of Directors of the bank, Alhaji Aliyu Dikko has  said.

Dikko, made this known on the sidelines of the 63rd Annual General Meeting of the bank in Abuja.

“It has been excellent.  If you look at that eight years when we came on board the total assets of the bank was about N630 billion.

“Right now it has grown to about 2. 3 trillion. So you can see that it has multiplied by more than three times.

” So the bank has done excellently well in the last eight years,” he said.

On Micro Small and Medium Enterprises (MSMEs), Dikko said the risk encountered in MSME businesses, is that money could be lost easily.

According to him,  this makes it difficult for financial institutions to easily give out loans to small business owners.

”What we are trying  to get the government to do, is to create a corporation that guarantees SMEs.

“Once we have that, the bank will be willing to give to the SMEs, because they know that whatever they give to them are guaranteed by any organisation. ”

On the bank’s projections for 2023,  the board chairman said Africa’s economic growth was expected  to remain slow,  due to spill over effect  from uncertainties in the global environment.

He said as debt servicing burden rises,  a growing number of African Governments are expected to seek bilateral and multilateral support towards managing the adverse economic impact.

He quoted United Nations Department of Economic and Social Affairs as projecting Africa’s growth to slow for an estimated 4. 1 per cent in 2022 to 3.  8 per cent in 2023.

“The IMF has however upgraded Nigeria’s 2023 economic growth projection to 3. 2 per cent from 3. 1 per cent earlier reported.

” The IMF noted that the upward review was due to sustainable measures being implemented by the government to address insecurity issues in the oil sector.

“The Chief Executive Officer,  NNPC, projects that daily oil production in the country can hit 2. 2 million barrels in 2023 if adequate security measures are put in place to protect oil assets.

” Based on the foregoing it is expected that exchange re pressure on the Naira should fairly reduced in the year,  due to projecyed accetion of foreign exchange revenue.

“Thus,  a peaceful political transition to a new government,  following the 2023 presidential elections is also expected to further boost investor confidence in Nigeria,”  Dikko said.

On downside risks and potential headwinds,  he expressed hope that economic adviser and policy makers would be circumspect and proactive in placing adequate measures to manage the risks.

He reiterated the bank’s commitment to enable seamless integration with new developments and ensure purposeful growth in the economy.

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BOI partners with states on disbursement of NG-CARES MSME grants

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The Bank of Industry (BOI) says it has so far received over one million applications for the Nigeria COVID-19 Action Recovery and Economic Stimulus Programme (NG-CARES) MSME grants.

The bank said this in a statement on Friday in Lagos to clarify the implementation and disbursement of the grants.

It said the funding arrangement allowed each state the autonomy to allocate their preferred grant sizes and number of grants across different programme components as approved by the World Bank.

“The World Bank nominated the Bank to provide its infrastructure for the delivery of the MSME component of NG-CARES (RA3) nationwide.

“Following this nomination, 28 out of 33 states chose BOI as their preferred execution partner to leverage the bank’s MSME infrastructure to deliver NG-CARES.

“Under this partnership, the states are solely responsible for nominating the beneficiaries and selecting those to be disbursed to.

“BOI’s role as execution partner is to manage the end-to-end application and verification processes, and present successful candidates to enable states’ decision making for disbursements. BOI disburses as instructed by the State.

“So far, BOI has received over one million applications for the NG-CARES MSME grants across states,” said the statement.

It added that while several beneficiaries may apply or be nominated, beneficiaries would not receive the grant if they did not meet the criteria.

It added that applicants might not benefit from the programme if their states did not select them as the states tried to manage the funding available for the programme and ensure the equitable distribution of benefits across business categories, Local Government Areas, gender or other demographics.

It said further enquiries on the eligibility requirements, implementation status, and other programme information could be made through the NG-CARES Federal CARES Support Unit, State delivery agencies, or the official programme: website www.ngcares.gov.ng.

NG-CARES is an initiative of the World Bank and the Federal Government of Nigeria, to support the recovery of communities, households, and businesses affected by COVID-19.

The programme is state-owned and state governments are fully responsible for funding and selection of beneficiaries.

This funding arrangement allows each state the autonomy to allocate their preferred grant sizes and number of grants across different programme components as approved by the World Bank.

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BoI grows Profit by 75%, declares N7.89bn dividend

The Bank of Industry (BoI) says it recorded a 75 per cent increase in Profit Before Tax to N61.15 billion in the 2021 financial period.

According to a statement from BoI, Malam Aliyu Dikko, Chairman of its Board of Directors, announced these results at its recently-concluded 62nd Annual General Meeting in Abuja.

Dikko said that the bank had also declared a dividend payment of N7.89 billion for the financial year ended December 2021 to its shareholders, the Ministry of Finance Incorporated and the Central Bank of Nigeria.

He said BoI’s dividend payout demonstrated its capacity to withstand economic headwinds to boost the Federal Government’s revenue.

Also speaking, BoI’s Managing Director, Mr Olukayode Pitan, said the upward trajectory in the bank’s performance enabled it to attract local and foreign capital to help fulfill the obligations of its mandate.

He stated that in February 2022, BoI successfully issued a 750 million Eurobond to enhance its capital base to support its customers and the real sector of the Nigerian economy.

“In the year under review, the Bank disbursed a total of N213.63 billion to 30,406 Nigerian enterprises through both direct and indirect methods.

“This represents a 47.3 per cent increase over disbursements in 2020, while 2021 disbursement included N2.99 billion to 22,120 farmers through the bank’s Smallholder Farmers on-lending product.

“It also included one billionn Naira to 4,000 micro-retailers through the Bank’s MSME Distributor Finance Programme, and through these interventions, an estimated 950,640 direct and indirect jobs were created in 2021,” he said.

Pitan reaffirmed the bank’s continued efforts toward supporting its stakeholders and achieving its mandate.

“Our commitment to building a resilient organisation that can respond to the needs of our customers and operating challenges is unwavering,

“We strongly believe that we can achieve this with the continuous support of all our stakeholders,” he said.

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Increase funding for agric, infrastructure development – BoI  

Mr Olukayode Pitan, the Chairman, Association of Nigerian Development Finance Institution,  has urged increased collaboration among Development Finance Institutions (DFIs) to address the economic challenges facing the country.  

Pitan, also the Managing Director of the Bank of Industry (BoI), said this at the opening session of the association’s second annual general assembly.  

The event which was attended by representatives of all the DFIs in Nigeria had as its theme: “Innovative Financing for Sustainable Growth and Development.”  

According to him,  it has become compelling for DFIs to increase the level of their intervention Nigeria is home to an estimated 200 million people  

He said  there had been marked economic improvement through the years from various intervention programmes and infrastructure investments  

Pitan said that the World Bank in its projection this year said that Nigeria would be home to 95.1 million poor people.  

Pitan said that this therefore, means that more efforts were required in the area of poverty alleviation, infrastructure and human capital development, agriculture, and industry among others.  

“The actions of all of us at this event shall have a significant input to determining whether the growth of Nigeria’s population will promote prosperity and improve the livelihood of the Nigerian people  

“Or  become a source of fragility, social tension, and increased economic hardships.  

“Nigerian DFIs have the potential to address these issues working in synergy with the organised private sector as well as the three tiers of government.  

“Collectively, we can deliver the level of sustainable social and economic development that we desire. Nigeria presents a unique context for the developmental mandate of DFIs.  

“Indeed, we are charged with enabling various sectors and segments of the economy such as agriculture, industry, infrastructure, export and import, and mortgage.”  

Giving an update on the Association of Nigerian Development Finance Institutions (ANDFI) secretariat, the chairman said a new and furnished workspace had been established at BoI, Abuja Corporate Office.  

According to him, a number of staff has also been recruited.  

He said the staff had been tasked to work hard to ensure efficient service delivery.  

Pitan thanked members of ANDFI for the achievements so far recorded, and urged them to live up to their obligations with regards to timely payment of their annual fees and other committed efforts.  

According to Pitan,  it is only when we work together in synergy, with a unified sense of purpose and commitment that we can deliver on our objectives  

He said that it would help achieve sustainable development across various sectors of the Nigerian economy.  

The chairman also charged members of the association to speak with one voice in order to influence government policies and matters of common interest; encourage mutual assistance and investment cooperation among members.  

He said there was also the need to invest in training and development of members so as to carry out studies on issues of national economic growth with a view to promoting development in our nation  

“Promote cooperation and exchange of technical expertise among member DFIs and with similar organisations in Africa and beyond,” he urged members.  

Also Speaking, Mrs Patricia Ojangole , the Managing Director, Uganda Development Bank Limited,  said  that the agriculture sector accounts for 70 per cent of employment in Africa.  

She said that in spite of this, the continent has yet to take advantage of the huge opportunities in the sector  

Ojangole said that agriculture remains the strongest source of economic growth in Uganda and Africa at large as it had the potential to create employment, improve livelihood and social development.  

She, however, said that in spite these potential, the impact of the sector in terms of economic development had not been felt in the continent.  

 “If you check East Asia and the Pacific, the trend is growing which shows there’s development in the economic sector, the Western Europe is more developed where growth in services is visible.”  

“Before now, labour usually moves from agriculture to manufacturing and to industries. But its not the case today. So, it will appear that the hope for sustainable job creation is maybe the servicing sector and not the industries.”  

To achieve the development goals across Africa, she called for more funding of key projects by Development Finance Institution.  

She said “Uganda relies on rainfall agriculture, in 2016 there was a serious shock that affected the economy for a whole year.  

“In the service sectors, jobs can be created through provision of digital social services. Finance is not the problem of empowerments but lack of trained personnel, project done and done wrongly, corruption makes development stagnant.  

“When money is mobilised and rightly used, it will give room for more employment and development.  

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BOI inaugurates industrial energy efficiency committee  

Bank of Industry (BOI) has inaugurated a six-member Project Investment Committee (PIC) aimed at improving Industrial Energy Efficiency (IEE), Resource Efficiency and Cleaner Production (RECP) through pragmatic and innovative approaches.  

The committee was inaugurated on Tuesday at BOI office in Lagos.  

Members of the committee include BOI, Manufacturers Association of Nigeria (MAN), United Nations Industrial Development Organisation (UNIDO), and Chartered Institute of Bankers Nigeria (CIBN).  

Others are the Federal Ministry of Trade and Investment (FMITI), and the Nigerian Investment Promotion Commission (NIPC).  

Mr Olukayode Pitan, Managing Director, BOI, said that the establishment of the committee was to enable industries to align with energy management systems for a sustainable environment.  

“Climate change is getting harder every year and the issue of industrial pollution, including air, noise, and waste disposal among others have been a major concern around the globe.  

“Industrial pollution contaminates drinking water, releases toxins in the air, reduces the quality of soil for agriculture, and constitutes a danger to human health as well as animals and plants:, Pitan said.  

According to him, to achieve its developmental goal, BOI knows that sustainability considerations must be incorporated into its business and professional activities.  

“This project will enable industries to align with energy management systems which will lead to reduced environmental pollution, lower industrial power level and reduced cost of production among others.  

“Therefore BOI’s participation in this project demonstrates a strong commitment of the bank in contributing its quota towards achieving sustainable development,” he said.  

He said the benefits of IEE and RECP include reduced cost of production, improved profitability, resourcefulness and competitiveness.  

Others are improved health, a stronger economy, improved brand image and a reduction in the explosion of global rising energy prices.  

He urged the committee to ensure that the goals of improving energy efficiency for a sustainable environment were actualised.  

Mr Oluyomi Banjo, a representative of UNIDO said the project would address questions on how industries can improve efficiency and increase profitability.  

He also said would help industries operate at international best standards, comply with regulations and maintain improved relationships with policymakers.  

Banjo said the project hoped to support not less than 75 industries across five sectors and beyond.  

“The five sectors are food and beverage, steels and metals, petrochemicals, wood and furniture, textiles and garments.  

“UNIDO has implemented IEE in over 18 countries across the world and RECP in over 60 countries.  

“This project will create an opportunity to develop IEE and RECP methodologies and human capacity building which will see Nigerians being trained to global standard as energy assessors and RECP experts.  

“We are hoping that this will eventually lead to national cleaner production centres in the country which will also produce a circular economy,” he said.  

Responding, Mr Segun Ajayi-Kadir, Director-General, MAN, commended BOI for developing ways businesses can thrive and survive in a sustainable environment.  

Kadiri assured that the committee would work with BOI assiduously to achieve the objectives of the committee.  

Dr Ezekiel Oseni, Chief Risk Officer, BOI said the committee aimed to recommend ways to reduce the cost of production and promote efficiency.  

“This is to support industries and provide them with tools and machinery that are ecosystem-friendly and cost-efficient.  

“We believe that IEE will enable our manufacturers and industries to compete effectively with our exports and imports,” he said.  

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BoI makes profit of N62bn  

The Bank of Industry Group has reported a profit before tax of N62.28 billion for the financial year ended December 31, 2021; 75 per cent higher than the 2020 profit of N35.54 billion.  

This is contained in the group’s summary financial information released yesterday.  

Discounted for tax, the profit for the year under review comes to N53.41 billion, compared to N31.59 billion in 2020.  

Also consistent with its growth trajectory, the group grew its total equity to N384.84 billion for the year ended 2021; over the 2020 position of N336.48 billion. However, its total asset dropped slightly to N1.71 trillion.  

The Group comprises the Bank of Industry, herein referred to as The Bank, and its subsidiary companies.  

The Bank made an after tax profit of N52.60 billion in 2021, compared to N30.90 billion in 2020.  

It has consistently demonstrated resilience in the face of macro-economic headwinds and recorded remarkable growth, even in face of the challenges posed by the COVID-19 pandemic.   

The Bank’s traditional commitment to grow local industries got a boost as loans and advances to the its numerous customers rose from N748.9 billion in 2020 to N779.29 billion in 2021.  

The increased support for industries in 2021 was consistent with its mandate to transform Nigeria’s industrial sector by providing long-term financing and counter-cyclical loans diversified across industries such as agro-processing, gender businesses and renewable energy among others.  

In the five years up to 2021, BOI promoted financial inclusion by supporting the expansion of over 3 million enterprises, thereby creating over 7 million jobs.  

To expand its capital-base to meet the needs of its customers, and contribute to economic growth of the Nigeria, the bank made successful forays into the international market and raised about $3.8 billion in the last 4 years.  

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BOI wins award for $1bn syndicated term loan facility

The Bank of Industry (BoI) has received an award for the ‘International Syndicated Loan Deal of the Year’ at the Bonds and Loans Africa Awards ceremony.

This is contained in a statement signed by the Head, Corporate Communications, BoI, Mrs Hadiza Olaosebikan.

The bank was presented with the award in recognition of its $1 billion syndicated term loan facility successfully raised in the international market in December 2020.

The award ceremony took place on Wednesday in Mount Nelson, Cape Town, South Africa.

Mr Olukayode Pitan, Managing Director, BoI, was quoted by the statement as saying that, the recognition highlighted the bank’s impact as Nigeria’s leading Development Finance Institution (DFI).

This, he said, was seen in the BoI’s commitment to maximising its developmental impact by raising and deploying funds that enhanced its capacity to support customers.

Pitan said that the award came on the back of BoI’s successful issuance of a €750mn Senior Eurobond (the first by any African national DFI) in February 2022.

He noted that the bank had raised about 3.8 billion dollars from the international financial market in the last four year.

“This includes another syndicated loan of €1bn in March 2020; and a 750 million dollars syndicated medium-term loan in 2018 which has been fully paid off,” Pitan said.

He said that the exhaustive selection process for the award involved close examination of deal size, tenor, structure, and distribution; analysis and background of the borrower and their accessibility to financing.

Others, he said, included borrowers extra credit for deals that demonstrate high quality execution, accessing new pools of liquidity, innovative structuring, and opening-up new markets.

“We look forward to intensifying our efforts to catalyse sustainable economic growth for Nigeria and the continent at large,” he said.

Pitan also acknowledged the significant role that myriad strategic partners played in the consummation of this deal in spite of the challenges posed by the COVID-19 pandemic.

“We are especially grateful for the support of our lead arrangers, underwriters and book runners.

“Afreximbank, Credit Suisse A.G, Rand Merchant Bank and Sumitomo Mitsui Banking Corporation; and the Central Bank of Nigeria provided a 100 per cent currency swap that allowed us to mitigate foreign exchange rate risks, ” he said.

The Bonds and Loans Africa Awards has been recognising the most innovative and ground-breaking deals from sovereign, corporate and financial institution issuers and borrowers since 2014.

The annual event brings together the industry’s most high-profile figures thereby raising the profile of the African financial markets with the international investment community.

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Bank of Industry’s assets hit N1.8trn despite COVID- 19

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The Bank of Industry (BOI) says its total assets grew to N1.86 trillion during  the 2020 financial year, despite the negative impacts of the COVID-19 pandemic on global economies.

Aliyu Dikko, Chairman, Board of Directors of BOI, reported at the 61st Annual General Meeting of the bank held on Thursday, in Abuja.

According to him, the N1.86 trillion represented an increase of 79.1 per cent when compared to the N1.04 trillion it recorded in the 2019 financial year.

Dikko ascribed the achievement to the bank’s resilience and strive amidst the challenges posed by the COVID-19 pandemic to businesses.

He noted that the increase in total assets by 79.1 per cent was driven to a large extent by the successful debt syndications of €1 billion and $1 billion that were concluded in March and December 2020, respectively.

Dikko stated that the Group’s total equity increased by 15.3 per cent from N293.08 billion in the previous year, to N336.48 billion in 2020.

The chairman informed shareholders at the meeting that Loans and Advances grew marginally in 2020 by 1.3 per cent to N749.84 billion, from the year 2019 position.

This, he stated, was a reflection of the adverse impact of the challenging operating environment on growth of new loans.

He further explained that Profit Before Tax fell by 9.6 per cent from N39.34 billion in 2019 to N35.54 billion, attributing it to the slowdown in  economic activities during the year, as well as the various interventions and support initiated by the Bank for its customers.

The chairman said that the bank facilitated the disbursement of N2.5 billion and N1.2 billion under the N-Power and Government Enterprise & Empowerment Programmes to 300,011 and 109,039 beneficiaries, respectively, as part of the bank’s partnership with the Federal Government under the National Social Intervention Programme.

Dikko stated that BOI also made donations that impacted on economic integration and intra-Africa trade, by creating key opportunities for growth in the region particularly in food, pharmaceuticals, logistics and the digital economy.

“Despite the challenging year, I am pleased to announce that the Group’s financial statements remain strong and resilient.

“The COVID-19 pandemic has forced the world to transform much faster than expected from the way we work to how we communicate; from the way we learn, to how we travel.

“We have witnessed improved opportunities in key sectors and industries, notably health care  and Information and Communication Technology.

“The IMF projects a growth of 1.5 per cent for Nigeria on the back of recovery in oil economy, as well as implementation of key initiatives aimed at spurring economic growth.

“Our broad strategy in the coming year shall mirror that of the government, in terms of focusing on business recovery, whilst keeping an eye on growth and new business opportunities,” he said.

Dikko expressed appreciation to the bank’s Board, its management and staff and relevant stakeholders, including  the CBN, customers, government agencies and other strategic partners for ensuring its continued growth and success.

Similarly, the chairman commended the Presidential Task Force on COVID-19, members of the Coalition against COVID-19, other private and public sector agencies, for their immense efforts toward managing and reducing the impact of the pandemic.

“Our thoughts and prayers also go to the frontline health workers and emergency response officials, who risked their lives daily to ensure the safety of others. They are by far the true heroes of 2020,” Dikko said.

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BoI recommends Tech as solution to unemployment

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Anthony Areh

Mr Olukayode Pitan, Managing Director,  Bank of Industry (BOI), has described technology as a panacea to some of Nigeria’s problems, especially youth unemployment.

Pitan made the assertion at the inauguration of BOI-UNILAG Incubation and Co-Working Hub, located at the Faculty of Social Sciences Premises of University of Lagos, Akoka.

“Tech can help solve some of Nigeria’s social problems particularly youth unemployment which has been further exacerbated by the pandemic.

“At the Bank of Industry, we believe that corporate organisations that are privileged to be in business at these difficult times need to bring groups of likeminded young individuals together to help create wealth and prosperity for future generations.

“Embracing tech and infusing it into business processes will make organisations and the country more competitive.

“And, I dare say, make our people happier through the delivery of better, higher-quality services from both the public and private sectors.

“The tech industry can be a major pillar of a diversified economy.

“ It can create exciting jobs that encourage our young people to stay in Nigeria even as they work and compete globally.’’

According to Pitan, BOI opened two tech hubs in 2019, in the states of Lagos and Bayelsa.

“Two additional hubs have been completed in Kaduna and Kebbi.

“The bank is committed to developing similar programmes in many other institutions of learning and states across the country.

“The  bank will also provide funding to support credible and bankable ideas that emerge from the tech hubs to enable them start operations and scale into viable businesses.

“At the Bank of Industry, we believe that with the collective will of our young people’s positive passion, the right government policies, mentorship, and private capital, this can become a reality in a short period,” he said.

On the BOI-UNILAG Incubation and Co-Working Hub, Pitan said that the bank was sponsoring the hub in recognition of the talented students within the university.

He said there was the need to channel the talents to more productive and impactful ends, rather than social vices like Internet fraud.

“The overall objective is to ensure that the bank’s corporate social responsibility investments generate better benefits for the country.

“We believe a hub like this gives young people the opportunity to create legitimate wealth while adding their own quota to the economic development of Lagos State, and Nigeria as a whole.

“Creative spaces like these are filling a crucial gap in the tech and startup industry. Hackathons and other competitions to identify tech solutions for social and business problems are born and developed,’’ Pitan said.

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Assets of Bank of Industry peaks at N1.9tln

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Nigeria’s Bank of Industry (BOI) Group has increased its assets from N1.04 trillion to N1.86 trillion between 2019 and 2020.

In its 2020 financial statement, BOI described the growth “as a resounding success in a period of significant challenges in the operating environment on account of the impact of the COVID-19 pandemic on the economy”.

According to the BOI, the positive result was a demonstration of its resilience and strength.

“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” a statement by the bank yesterday added.

It explained that, “The 78.9 per cent increase of the Group’s assets was driven to a large extent by the successful debt syndication of €1 billion and $1 billion that were concluded in March and December 2020 respectively.”

The group’s total equity also increased by 14.8 per cent from N293.08 billion in the previous year to N336.48 billion in 2020.

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