BOI bags ‘Transaction of the Year’ award

Olasupo Olusi, Managing Director and CEO of Bank of Industry (BOI), has commended the Management and staff of Thisday newspaper for giving the bank “Transaction of the Year Award” at the 30th Commemoration Awards organized by Thisday Newspaper with the theme: “Thisday @ 30 When the going gets tough… the tough gets rewarded” to honour institutions and individuals for their resilience and courage in their various field of endeavours.

Receiving the award at the Eko Convention Centre in Lagos, Olusi expressed his gratitude to Nduka Obaigbena, Thisday’s publisher, and the newspaper’s management for recognizing the efforts of those driving development financing in Nigeria. The award coincides with BOI’s recent landmark syndication of €1.879 billion for lending to Micro and Small Scale Enterprises (MSMEs).

Olusi said the milestone fund raising by BOI in the African continent represented the largest ever raised by an African Development Finance Institution, remarking that shows growing investor’s confidence in Nigeria and the Bank of Industry.

“We are very proud because we are positioned to support enterprise development in the country,” Dr. Olusi said.

Olusi highlighted that this milestone fundraising reflects growing investor confidence in Nigeria and the Bank of Industry. “We are very proud because we are positioned to support enterprise development in the country,” he remarked.

Addressing challenges faced by MSMEs, Olusi said “We need to manage risk in organizations we are financing.” He added that the bank plans to develop a model to strengthen portfolios against non-performing loans.

BOI’s successful syndication of €1.879 billion from international financial markets represents a historic milestone as the largest amount ever secured by any Nigerian or African development finance institution (DFI).

This capital inflow is earmarked for MSMEs, a sector crucial to Nigeria’s economic landscape. The new funds have significantly bolstered BOI’s balance sheet, increasing it from N3.9 trillion in 2023 to N7.1 trillion by the end of December 2024.

The syndication attracted considerable interest from international investors, including over 10 new participants from the Middle East and Asia. This robust engagement underscores BOI’s reputation as a trusted partner in Nigeria’s industrialization.

The syndication was oversubscribed by 187.9 percent, showcasing innovative financing achieved through a dual-layer guarantee structure supported by the Africa Finance Corporation (AFC) and the Central Bank of Nigeria (CBN). This mechanism allowed BOI to secure significantly lower interest rates than typically associated with Nigerian debt instruments, translating to savings of approximately 3.6 percent per annum or an estimated ₦295.7 billion over the three-year tenor.

The favourable terms will reduce the cost of borrowing for the real sector, making it more competitive.

Financial analysts view this achievement as a testament to BOI’s sound management and consistent investment-grade ratings from Fitch and Moody’s since 2015. Such accolades reinforce its standing as one of Nigeria’s best-managed government institutions, reflecting high standards of governance and financial management.