BOI’s nonperforming loan less than 5% despite risk taking - Pitan

The non-performing loans of the Bank of Industry (BOI) are less than 5 per cent despite taking risks that commercial banks avoid in order to develop industries in Nigeria.

Speaking yesterday in Abuja while receiving a delegation from the Association of African Development Finance Institutions (AADFI), the Managing Director of BOI, Olukayode Pitan, said development finance institutions worldwide are more venturesome than commercial banks in aiding industries.

The BOI has the mandate to host the 2017 Association of African Development Finance Institutions’ international conference with participants coming from over 100 countries slated for Abuja soon.

Speaking on the need for development finance institutions to finance businesses that commercial banks may avoid, the BOI boss said, “Our rating in BOI is better than most Nigerian banks and we are taking risks they are not taking.”

He said the bank has Double A rating which is better than the ratings of most commercial banks because the BOI gives loans to bankable businesses after careful consideration.

The Secretary General of the Association of African Development Finance Institutions, Joself Alfred Amihere, said the conference will provide opportunity for players in development finance to discuss innovations, network and chart the way forward for funding challenges for businesses in Africa.

Amihere said Nigeria won the bid to host the conference and that participants would come from beyond Africa, including Asia and Europe.