DFIs must initiate creative ideas to bridge financial gaps in Nigeria, says BoI MD

Kayode Pitan, managing director of the Bank of Industry (BoI), says creative approaches and collaborative efforts must be initiated to drive transformative changes that Nigeria needs.

Pitan spoke on Thursday at the 3rd annual general assembly of the Association of Nigerian Development Finance Institutions (NDFIs), in Abuja.

The event, themed, ‘Innovative Financing for Developmental Impact’, had in attendance stakeholders from the development finance sector.

Pitan, who is also the chairman of the association, said Nigeria is projected to experience the largest population growth in Africa by 2050 to about 400 million people.

With this, he said, it had become increasingly clear that traditional financing models were inadequate as the country aspires to achieve sustainable development goals and address global challenges.

The managing director, therefore, urged DFIs in Nigeria to become innovative in implementing transformative development and bridging financial gaps.

“We need fresh ideas, creative approaches, and collaborative efforts to bridge the financing gap and drive the transformative changes our country desperately needs,” Pitan said.

“This is where innovative financing mechanisms that will complement traditional DFIs funding sources come into play.

“By utilising specialised funding arrangements complemented by non-financial services, we as DFIs are able to act as growth catalysts to the development of the Nigerian economy.

“As we all know, DFIs play a significant role in ensuring sustainable economic and social development. This is evident in developed and developing economies where DFIs are instrumental to their economic successes.

“Therefore, we must continuously work together, leveraging on our expertise, resources, and networks to unlock transformative projects by working in synergy with the organised private sector and our respective governments.

“Collectively, we can deliver the level of sustainable social and economic development that Africa needs.”

Pitan also said stressed the need for international cooperation and solidarity in advancing innovative financing for developmental impacts.

He said developed economies could support developing countries by providing resources, technology transfer, and capacity building.

“Multilateral institutions have a critical role to play in coordinating efforts, mobilising resources,  and ensuring the effective implementation of innovative financing mechanisms,” he added.

“Therefore, we must continuously work together, leveraging on our expertise, resources, and networks to unlock transformative projects by working in synergy with the organised private sector and our respective governments.”

Speaking further on innovative financing, Pitan said over the years, the bank has successfully raised funds from the international capital market.

This, he said, has enabled the financial institution to not only fill critical gaps and provide the necessary funding for transformative projects, but also exposed it to global best practices and innovative solutions that promote institutional development, and improve the effectiveness of developmental initiatives.

He further called for the exchange of technical expertise between DFIs members and similar organisations globally; prioritising professional advancement while leveraging the knowledge from best-in-class economies as ways of deepening innovative financing.