BoI financials defy headwinds as profits surge over 700%

Bank of Industry (BoI) seemed to have emerged unscathed from economic headwinds that battered 2015 results of Nigerian banks huge losses from non-performing loans by top tier banks in results recently published on Nigerian Stock Exchange website.

The bank recorded a profit after tax (PAT) of N44.7 billion, which represented a 761 percent increase from N5.2 billion in 2014.

Operating income grew by 161 percent to N70.7 billion from N27.1 billion while net loans grew by N1.7 billion to N572 billion within the period in review.

Waheed Olagunju, acting Managing Director, Bank of Industry (BoI), said that  a total sum of N83.5 billion was disbursed to 776 enterprises by the development finance institution in 2015.

He further noted that the interventions further helped to create over 400,000 jobs for Nigerians.

Speaking in Abuja at the bank’s 56th annual general meeting (AGM), said the bank will seek to further deepen its developmental impact in both core emerging sectors, drive service delivery excellence, and support the development to small and medium enterprises (SMEs) in the country by leveraging strategic partnership, effectively managing enterprise risks as well as leveraging technology.

“A total sum of N95 billion had so far been approved for disbursement to over 400 enterprises as at June this year,” Olagunju said.

He added that bank was working assiduously to approving more loans in the second half of 2016 to meet institution’s disbursement target of N212 billion which could potentially creation up to 1 million jobs in addition to the 1.6 million projected under Government Enterprise and Empowerment Programme (GEEP).

He said by a projection of 2.6 million jobs per annum BOI’s interventions could generate more than 10 million jobs over the next four years to reduce unemployment to a single digit.

Meanwhile, Okechukwu Enelamah, Minister of Industry, Trade and Investment, commended the bank for posting a sustained “impressive financial performance” since its inception 15 years ago.

“I am also happy that BoI had started implementing the N140 billion Government Enterprise and Empowerment Programme (GEEP) which is an aspect of the Federal Government’s N500 billion Social Intervention Package shortly after the 2016 budget was signed into law.”

Under GEEP, the development finance bank was chosen by the federal government, to identify and disburse soft loans to 1.6 million beneficiaries nationwide, mainly market women, youths, artisans, and farmers.

“BoI has braced up to the increasing responsibilities that were being assigned it to fulfill the country’s economic development agenda, particularly in the implementation of the Nigerian Industrial Revolution Plan (NIRP), the National Enterprise Development Programme (NEDEP) and the Government’s Enterprise and Empowerment Programme (GEEP),” said Enelamah.

He, however, charged the bank to intensify efforts at mobilising suitable financial and nonfinancial resources from within and outside the country for the transformation of Nigeria’s industrial sector in accordance with the Nigerian Industrial Revolution Plan (NIRP).

ISAAC ANYAOGU