Bank of In­dus­try Back­ing Youth Em­ploy­ment and Ru­ral So­lar Power

Financial Nigeria Magazine - - Finance -

The level of in­dus­tri­al­iza­tion is the crit­i­cal dif­fer­ence be­tween poor and rich coun­tries. In­dus­tri­alised coun­tries – de­fined as coun­tries with at least 20% of GDP in man­u­fac­tur­ing – are the wealthy coun­tries. Coun­tries with ro­bust man­u­fac­tur­ing bases achieve eco­nomic de­vel­op­ment, as they build the value chain of in­dus­trial pro­duc­tion. The mul­ti­plier ef­fects of in­vest­ment in the in­dus­trial sec­tors are tremen­dous, in­clud­ing em­ploy­ment cre­ation.

Our re­spon­si­bil­ity as Bank of In­dus­try is to pro­vide suit­able fi­nanc­ing to man­u­fac­tur­ers, in terms of pric­ing (sin­gledigit prefer­ably) and long-term ten­ure. BOI is a de­vel­op­ment fi­nance in­sti­tu­tion (DFI). Our ap­proach to risk man­age­ment is dif­fer­ent from those of com­mer­cial banks. Our cus­tomers need to pro­vide their coun­ter­part fund­ing. Through our qual­i­fy­ing cri­te­ria, we try to en­sure they don’t lose their own cap­i­tal. Our pro­cesses could be strin­gent, but they are de­signed to pro­tect the funds of our cus­tomers as well as the Bank’s funds. We raise re­sources from within and out­side the coun­try. The re­sources we raise are other peo­ple’s sav­ings. We must pay back; like we have a 15year deben­ture with the Central Bank of Nige­ria – un­der the CBN’s N535 bil­lion in­ter­ven­tion fund – we must pay af­ter 15 years.

In 2016, we ap­proved 800 loans bankwide, with to­tal value of N150.23 bil­lion. While our to­tal loan ap­proval grew by 9% over the fig­ure for 2015, our NPLs de­clined to 3.72% (which is below CBN’s thresh­old of 5%)

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