BusinessDay
Nigeria's leading finance and market intelligence news report.

Senate urges BOI board to increase FG’s dividend to 20%

The Senate has urged the Bank of Industry (BOI) to increase the percentage of dividends accruing to the Federal Government, even after it had paid an N8.2 billion dividend to the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance, between 2014 and 2019.

A statement in Abuja, by Kayode Odunaro, media adviser to the chairman, Senate committee on finance, Solomon Adeola (APC- Lagos) said Adeola made the call at an investigative hearing on revenue remittances by ministries, department and agencies (MDAs) in Abuja.

Adeola described the seven to 10 percent used by the board of directors of the bank to determine dividend on the net profit of the bank as too low and that the bank should consider increasing the percentage to 20 percent or more.

“While I want to commend the BOI for running an efficient bank, that is adding value to our industrial production as well as earning revenue for the Federal Government, I want to say that more money should be paid to the government in view of the financial constraints the country is facing at this point,” he said.

Read Also: Rivers courts decide on Indorama’s 7.50% host community equity dividends

Adeola urged the managing director of the BOI, Olukayode Pitan, to bring the issue of increased dividends to the bank’s board of directors, to help reduce recurrent budget deficits and borrowings by the government.

He said that given the 2021 budget deficit of about N6 trillion, the country was sourcing for revenue for a supplementary budget for procurement of COVID-19 vaccine and for fighting insecurity.

Adeola also called for confirmation, with treasury receipts, on the payment of the dividend by the BOI into the Consolidated Revenue Fund.

Pitan had earlier told the committee that BOI had paid a dividend of N8.2 billion to CBN and Federal Ministry of Finance as shareholders in the bank, and over N1 billion as one percent Stamp Duty to the Federal Inland Revenue Service.

Whatsapp mobile

Get real time updates directly on you device, subscribe now.