Sunday Ojeme 
To ease the process of acquiring assets by business owners, the Bank of Industry (BoI) has approved a N50 billion recapitalisation for its subsidiary, LECON Financial Services.
The development is aimed at ensuring the bank’s subsidiaries make maximum impacts on the economy.
Disclosing this yesterday in Lagos as part of activities to commemorate the bank’s 65th anniversary, the Managing Director/Chief Executive Officer, BoI, Dr Olasupo Olusi, also recalled the successful conclusion of a global loan syndication that raised nearly €2 billion, which is the largest fundraising in BOI’s history and indeed the largest syndication in the history of African DFIs.
Olasupo, who spoke extensively on the success story of the development finance institution, said: “The new funding will enable LECON to support key sectors and better respond to increasing customer interest in asset acquisition through leasing as an alternative to outright purchasing equipment at a relatively lower cost and longer tenure, taking pressure off business owners.
“Another subsidiary of the bank, BOI Investment and Trust Company Limited (BOI-ITC), has been re-issued by the Securities and Exchange Commission (SEC), its Trusteeship Operating License. BOI-ITC will re-enter the trusteeship market, focusing on Trusts/Trusteeship Services, Consultancy, Business Advisory, Governance Advisory, and Nominee Services.
“We have increased the capitalisation of BoI Microfinance Bank to enable it to obtain a state licence, rather than its current unit licence.”
He commended the efforts of the bank’s founding fathers, whose legacies and vision have propelled the lender to its current status.
According to him, “Reflecting on our journey, I am reminded of the visionary leaders who laid the foundation of this institution and the dedicated professionals who built on that vision with unwavering commitment.
“We are indeed grateful for the legacies bequeathed to us, which we build on to catalyse industrial growth and engender developmental impact.
Starting from our humble beginnings as the Investment Company of Nigeria (ICON) in 1959, to the Nigerian Industrial Development Bank (NIDB) in 1964, and finally our transformation into the Bank of Industry in 2001, the bank has continuously evolved to meet the changing needs of Nigeria’s economy.
“In doing so, we have positively impacted the lives of countless Nigerians by supporting businesses, promoting job creation, and facilitating inclusive economic growth. As Nelson Mandela aptly noted “The past is not merely a place of reference but also a source of inspiration for building the future.
“As we mark this historic milestone, I would like to highlight some of the bank’s key achievements over time. In 2007, BOI’s authorised share capital was increased to ₦250 billion to put the bank in a position to address its mandate better; this was subsequently increased to ₦500 billion in May 2023.”
He also said in recognition of the pivotal role of MSMEs in national economic development, the Bank in 2014 engaged 122 SME consultants and entered strategic alliances with 10 SME-friendly commercial banks.
“Today, we have over 300 Business Development Service providers supporting SMEs nationwide. The bank also has a robust lending programme with various financial institutions, including microfinance banks and fintech.
“In 2015, BOI commenced a national footprint expansion by opening eight state offices. This drive has continued through the years, and I am proud to say that today, the bank has a presence in 33 states nationwide.
“In 2017, BOI commenced raising funds on the international market with a $750 million AFREXIM loan. Since then, we have successfully raised over $5 billion from the international capital markets through Eurobonds, loan syndications, and green finance instruments.
“One key thread in achieving these milestones through the years is our partners. BOI has established strategic partnerships with key local public and private institutions, as well as global financial and multilateral institutions to enable the bank to fulfil its mandate effectively.
“BOI partners with state governments, and foundations to establish the “Matching Fund” scheme. We also have partnerships with trade associations, such as the National Association of Small and Medium Enterprises (NASME), Nigerian Association of Small-Scale Industrialists (NASSI), and Manufacturers Association of Nigeria (MAN), to deepen real sector financing,” he added.
He pointed out that BOI recently signed a partnership agreement with SMEDAN to provide Nano and Micro Enterprises in Nigeria with a ₦1 billion fund at a single-digit interest rate. We have partnerships with several other public agencies like NCDMB, to support specific sectors.
According to him, “in November 2023, the Federal Government of Nigeria appointed BOI as the executing agency for the ₦200 billion FGN MSME Intervention Fund, which includes a ₦50 billion Presidential Conditional Grant Scheme (PCGS), a ₦75 billion Manufacturing Sector Fund, and a ₦75 billion MSME Intervention Sector Fund. This program is currently being disbursed and there are numerous stories on the impact on private enterprises.
“Our strategic partnerships also extend to numerous organisations, such as the African Development Bank (AfDB), the African Finance Corporation (AFC), the Investment Climate Reform (ICR) initiative, the African Guarantee Fund (AGF), the Multilateral Investment Guarantee Agency (MIGA), the United States Export-Import Bank (USEXIM), the International Finance Corporation (IFC), etc. and several others.
“In the last 12 months, we have also revised our strategy to focus on impact and introduced various strategic initiatives in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda and in response to emerging macroeconomic issues.
“In 2024, we introduced our six thematic focus areas to drive developmental impact Gender, Climate and Sustainability, Youth and Skills, Digital Economy, and Infrastructure. These themes stem from their importance to Nigeria’s overarching development and will guide our financing interventions in the Nigerian economy.
“This year, we launched the Rural Areas Program on Investment for Development (RAPID) programme, to promote financial inclusion and support the development of micro and small businesses in rural Nigeria, focusing on youth and women.”
