BOI: We disbursed N234bn to 10,145 MSMEs in 2019

The Bank of Industry (BOI) disbursed N234 billion to 10,145 micro, small and medium enterprises in 2019.

This was disclosed at the bank’s 60th annual general meeting that held virtually in line with COVID-19 protocols.

Presenting the annual results, Aliyu Abdulrahman Dikko, chairman of the board of directors, said: “I am also pleased to report that the group’s balance sheet remains strong while our business operations are in line with both regulatory requirements and global best practices”.

Dikko said the bank’s total equity grew 13.5 percent to N293.09 billion from N258.24 billion in 2018 while total assets declined by 2.7 percent to N1.04 trillion.

Profit before tax was reported to have increased by 7.3 percent to N39.34 billion year-on-year over the ₦36.66 billion recorded in 2018 while the bank also recorded a 16.7 percent growth in loans and advances from ₦634.11 billion in 2018 to ₦740.03 billion in 2019.

“In the course of the year, we made significant progress towards improving the size of our loanable funds, leveraging our strategic partnerships in the international market and the support of the Central Bank of Nigeria,” Dikko said.

“The bank was able to raise €1 billion through syndication by international banks for on-lending to SMEs to create jobs.”

He also assured that the bank will continue to provide financial and non-financial support to local companies to help them improve operational efficiency to compete effectively and take advantage of the anticipated improved demand after the African Continental Free Trade Area (AfCFTA) kicks off.

In his remarks, Kayode Pitan (pictured), BOI managing director, said the year under review represented a significant year for the bank.

“As a bank, we have survived 60 years and by God’s grace, the bank has done very well. The balance sheet of the bank, after 60 years, is now slightly over N1 trillion and the profit for last year was also very good.”

Pitan said the bank introduced a number of initiatives to help cushion the effect of the pandemic.

Listing the initiatives introduced, Pitan said BOI reduced interest on its direct line of credit by two percent for one year from April 1, 2020, to March 31, 2021; granted a three-month moratorium on principal repayment to all beneficiaries of the BOI Fund from April 1, 2020, to June 31, 2020; with the option to extend by up to 12 months for customers with proper justification on a case by case basis.

For loans issued under the Central Bank of Nigeria (CBN) intervention programme and in line with a CBN directive, he said the bank reviewed interest rate downwards to five percent per annum, with a three-month moratorium.

Pitan said the bank also worked with the Nigerian Content Development Management Board (NCDMB) to reduce interest rates on credit facilities approved under the Nigerian Content Intervention Fund from eight percent per anum to six percent per anum, including an extension of the moratorium period.