….Lecon Financial Services approves ₦50bn recapitalization.
The Managing Director/Chief Executive Officer (CEO) of the Bank of Industry (BoI), Dr. Olasupo Olusi, has said that the bank has approved a loan amounting to €2 billion to enable it to meet the growing demand of small and medium enterprises (SME) enterprises. Have collected. Financing in the country.
He said the Bank is trying its best to cope with the increase in demand for its service through established strategic partnerships with leading local public and private institutions as well as global financial and multilateral institutions so that the Bank can effectively fulfill its mandate. To be able to do.
According to him, the BOI Board has approved the ₦50 billion recapitalization of one of its subsidiaries, LECON Financial Services, to enable asset acquisition through leasing as an alternative to outright purchase of equipment with relatively low cost and long life. In order to increase the interest of customers, better feedback can be given. Tenure, taking pressure off business owners.
Dr. Olusi, who made the disclosure at a media briefing to announce the 65th anniversary of BOI in Lagos, said: “A key thread in achieving milestones over the years has been our partners.
“We are truly grateful for the legacies given to us, which we use to drive industrial growth and create developmental impact.
“From our humble beginnings as the Investment Company of Nigeria (ICON) in 1959, to the Nigerian Industrial Development Bank (NIDB) in 1964, and ultimately our transformation into the Bank of Industry in 2001, the Bank has continuously evolved. The changing needs of the Nigerian economy. In doing so, we have positively impacted the lives of countless Nigerians by supporting businesses, promoting job creation and facilitating inclusive economic growth.
As Nelson Mandela rightly said; “The past is not only a place of reference, but also a source of inspiration for building the future”.
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“When we reflect on our history, these principles guide us forward to impact the lives of countless Nigerians through supporting business, promoting job creation and facilitating inclusive economic growth.” Guides.
“As we mark this historic milestone, I would like to highlight some of the Bank's key achievements over time.
“In 2007, the authorized share capital of BOI was increased to ₦250 billion to better position the bank to carry out its mandate; This was later increased to ₦500 billion in May 2023.
“Recognizing the vital role of MSMEs in national economic development, the Bank appointed 122 SME advisors in 2014 and entered into strategic alliances with 10 SME-friendly commercial banks.
“Today, we have over 300 business development service providers supporting SMEs across the country.
“The bank also has a strong lending program with various financial institutions including microfinance banks and fintechs.
“In 2015, BOI began national footprint expansion by opening eight state offices. This campaign has continued over the years, and I am proud to say that today, the bank has a presence in 33 states across the country.
“In 2017, BOI began raising funds in the international market with a US$750 million AFREXIM loan. Since then, we have successfully raised over $5 billion from international capital markets through Eurobonds, debt syndication and green finance instruments.
“This month, we concluded a global debt syndication which raised approximately €2 billion which is the largest fundraising in the history of BoI and indeed the largest syndication in the history of African DeFi.
“A key element in achieving these milestones over the years has been our partners. BOI has established strategic partnerships with leading local public and private institutions as well as global financial and multilateral institutions to enable the Bank to effectively fulfill its mandate.
“BOI has partnered with state governments and foundations to set up a “matching fund” scheme.
“We have also partnered 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 .
“BOI recently signed a partnership agreement with SMEDAN to provide ₦1 billion funds at single-digit interest rates to nano and micro enterprises in Nigeria. “We have partnered with many other public agencies like NCDMB to support specific sectors. In November 2023, the Federal Government of Nigeria appointed BOI as the executing agency for the ₦200 billion FGN MSME Intervention Fund, comprised of ₦50 billion Presidential Conditional Grant Scheme (PCGS), ₦75 billion Manufacturing Sector Fund and a ₦ Are. ₹75 billion MSME Intervention Sector Fund.
“This program is currently being delivered and there are many stories of its impact on private enterprises. Our strategic partnerships extend to a number of organizations, such as the African Development Bank (AfDB), African Finance Corporation (AFC), Investment Climate Reform (ICR) Initiative, African Guarantee Fund (AGF), Multilateral Investment Guarantee Agency (MIGA), United States Export-Import Bank (USEXIM), International Finance Corporation (IFC), etc. and many others.
“Over the past twelve months, we have also revised our strategy to focus on impact and launched various strategic initiatives in line with President Bola Ahmed Tinubu’s renewed Hope Agenda and in response to emerging macroeconomic issues. In 2024, we launch our six thematic focus areas to enhance developmental impact – gender, climate and sustainability, youth and skills, digital economy and infrastructure. These themes stem from their importance to the broader development of Nigeria and will guide our financing interventions in the Nigerian economy.
“This year, we launched the Rural Areas Program on Investment for Development (RAPID) programme, to promote financial inclusion and support the growth of micro and small businesses in rural Nigeria, with a focus on youth and women.
“Recognizing our national diversity, we plan to enhance Non-Interest Banking (NIB), Export Credit Agency (ECA) and Supply Chain Finance (SCF) with a view to providing adequate financing to different economic groups. Improving the offering. To accelerate economic development.
“In line with Nigeria’s sustainability agenda, BOI has also launched a climate-focused initiative. As evidence of this, BOI has been designated 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 empowers BOI to lead climate initiatives and support sustainable development efforts in Nigeria. In October 2024, the Bank held its first inaugural annual lecture series and 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 items across the country. The platform seeks to increase transparency and accountability in the food commodity market by providing real-time information into price trends, stabilizing markets, protecting consumers, and informing policy decisions.
“In addition to the Bank's efforts, we have also begun to implement steps to ensure that our subsidiaries are significant contributors to the national impact.
“All these efforts have not gone unnoticed. In the past year, BOI has received several awards, including the EMEA Award for “Best Social Development Program in Africa”, “Best Company in Financial Inclusion” and the SERAS Award for “Most Effective” for Investing in the Digital and Creative Economy (iDICE). Have done. MDAs/Parastatals in Sustainable Development, and the Phillips Consulting Ltd Award for “Best Website and Best Overall Digital Presence for a Federal Parastatal”. (IOD). As we celebrate our past achievements, we also recognize the opportunities and challenges that lie ahead. We live in a time of rapid technological advancements, changing economic dynamics and growing environmental concerns. Looking to the future, we look forward to policies that promote sustainable industrialization, support customers with innovative financing solutions, expand our partnerships, strengthen financial inclusion efforts and foster a supportive business environment, especially for MSMEs. We reaffirm our commitment to work closely with government agencies to advocate for And start-ups are, thus, building a resilient and inclusive economy.
“This anniversary is a testament not only to the longevity of our organization but also to the resilience, adaptability and shared purpose of our mission. To our partners and stakeholders who have contributed to our journey, thank you for your passion, dedication and belief in our vision.
“As we celebrate our past achievements, we also recognize the opportunities and challenges that lie ahead. We live in a time of rapid technological advancements, changing economic dynamics and growing environmental concerns. Looking to the future, we look forward to policies that promote sustainable industrialization, support customers with innovative financing solutions, expand our partnerships, strengthen financial inclusion efforts and foster a supportive business environment, especially for MSMEs. We reaffirm our commitment to work closely with government agencies to advocate for And start-ups are, thus, building a resilient and inclusive economy. This anniversary is a testament not only to the longevity of our organization but also to the flexibility, adaptability and shared purpose of our mission.
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