Relative to other financial institutions in the country like the Central Bank Of Nigeria, there is a significant paucity of awareness as regards the existence of the Bank Of Industry and therefore much less the activities of same. The Bank of Industry was created by the Federal Executive Council in January 2002 with the sole purpose of promoting and encouraging small and medium scale industries in Nigeria. It was formed by the amalgamation of three already existing development financial institutions comprising: The Nigerian Bank of Commerce and Industry (NBCI), The Nigerian Industrial Development Bank (NIDB) and The National Economic Reconstruction Fund (NERFUND).
Following its conception by this merger, former President Olusegun Obasanjo formally launched the new Bank of Industry on 17 May 2002, and the bank officially started operations with an initial capital base of 50 billion naira (about $500 million). The new Bank, which is solely owned by the Federal Government, has offices in 8 states of the federation headed by Evelyn Oputu.
The Bank of Industry, according to its mandates, was conceptualized by the Federal Government to “transform Nigeria’s industrial sector and integrate it into the global economy through providing cheap financing and business support services to existing and new industries in order to achieve the attainment of modern capabilities to produce goods that are attractive to both domestic and external markets”. Specifically, the Bank is expected to assist in resuscitating ailing industries and promoting new ones in all the geopolitical zones in the country. To this effect it has been mandated to identify and assist projects that have large transformation impacts by way of creating forward and backward linkages with the rest of the economy, utilize domestic inputs by adding value to raw materials, generate employment opportunities and produce quality products for the market.
From a structural perspective, the Bank has four subsidiaries namely: Leasing Company of Nigeria Limited (LECON), NIDB Trustees Limited (NTL), NIDB Consultancy and Finance Limited (NIDB Consult) and Industrial and Development Insurance Brokers (IDIB).
The Bank works hand in hand with its subsidiaries aligned towards accomplishing Nigeria’s development aspirations, the vision 20:2020 and the millennium Development Goals.
Accessing the Bank of Industry facility, is made easy for the public by simply submitting a number of documents after which appraisals are undertaken. Checklist for the documents required can be downloaded from the BOI website or from their zonal offices.
Entry for the facility differs either through SMEs or Cooperative. The SME is very accommodating in the sense that over 10million can be accessed with no maximum limit but due to management’s approval at an interest rate of 10% payable monthly and loan is secured using collateral in form of land, building or commercial Bank guarantee. Most appreciated by the grass root community is the Cooperative which allows them access to the facility without the use of collateral but by simply depositing 10% of the loan amount to be collected which cannot exceed 10million naira.
In order to ensure that the money is used for what it is purposed for, the Bank of Industry has put in place the use of quotation for the supply of equipment rather than giving their customers raw money, equipment are purchased whether locally or abroad.
Bank of Industry is indeed a system that works.