PRODUCTS AND SERVICES BANK OF INDUSTRY (BOI) Shea Conference 2013

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Sharleen Mosley
7 years ago
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1 PRODUCTS AND SERVICES OF BANK OF INDUSTRY (BOI) Shea Conference

2 Background BOI was established in October, 2001 following the reconstruction of the Nigerian Industrial Development Bank (NIDB) by subsuming the mandates of NBCI and NERFUND. NIDB had been in existence since 1964 as one of the oldest DFIs in Nigeria, and Africa. In pursuance of its vision to become a world class and selfsustaining National Development Finance Institution, a consultancy firm was commissioned in 2004 to undertake an Institutional and Management Study of the bank, which resulted in the restructuring of its erstwhile Management to its present status to allow for efficiency in driving the Bank s business. BOI is largely a state owned DFI charged with the responsibility of promoting the emergence of a virile industrial sector. In other words, BOI was conceived to catalyze the transformation of the real sector. Its mandate is to provide financing and business support services to entrepreneurs especially SMEs with strong potentials for employment generation and exports. The Bank is to act as a driver in 2 the development of SME sector in Nigeria on a sustainable basis.

3 BOI s Ownership Shareholders»99.9% of Equity held by the Federal Government through: Ministry of Finance Incorporated (MOFI) 59.54% Central Bank of Nigeria (CBN) 40.36% Equity held by 42 private Shareholders 0.10% % ======== 3

4 At BOI, there is clear delineation of separate and distinct roles for the owners, the Board and the Management, as well as clarification of the powers of the Board, those delegated to Management and the results and accountability it expects from the Management. BOI fully complied with the requirements of the Companies and Allied Matters Act (CAMA) in its operations and reporting through; -maintenance of proper accounting records, -applicable accounting standards are followed, -suitable accounting policies are adopted and consistently applied Internal control procedures are instituted as far as is reasonably possible, safeguard assets and prevent and detect fraud or other irregularities 4

5 BOI s VISION To be a leading self-sustaining Development Finance Institution, operating under sound management and banking principles, that would promote the emergence and development of a virile competitive industrial sector in Nigeria. 5

6 BOI s MISSION To transform Nigeria s industrial sector and integrate it into the global economy by providing financial and business support services to existing and new industries to attain modern capabilities to produce goods that are competitive in both domestic and external markets. BOI Core Activities Project Identification and Selection Resource Mobilization Financing (Long Term, Short Term and Equity) Industrial Policy Formulation Business Development Support 6

7 BOI Products and Services Primarily, BOI aims to support business through the provision of the following support programs: Providing financing for the support of entrepreneurs through the provision of direct loans, guarantee support etc Providing financial advisory services to entrepreneurs Acting as intermediates between entrepreneurs and both local and international financial institutions assisting businesses access financing from these institutions. Collaboration with other development institutions particularly national, public and private sector multilateral and bilateral agencies. A host of other complimentary services rendered by BOI s subsidiaries. 7

8 BOI Specific Services are; Equity Financing Co-Financing/Syndication Infrastructure Development/Industrial Parks Structured Lending International Operations/Trade Services Management of specialised Funds Other complimentary services rendered by BOI s subsidiaries: Leasing, Trustees, Insurance, Consultancy, Micro Finance Bank and Bureau De Change. 8

9 OTHER ROLES OF BOI Establishment of global partnership in support of the industrialization of Nigeria in conjunction with other development partners. BOI has working relationship with the following; - DBJ, JBIC, JICA, JASME amongst others. Also have MOUs/Working Relationships with the World Bank Group, African Development Bank Group, IDB, IDC, TICAD/UNDP, UNIDO, etc. Structuring of schemes of financial partnership (M&A, JVs, PPP, portfolio investment, ventures capital, leasing, etc) between Nigerian and foreign companies. 9

10 In its bid to further cascade its operations to Micro, Small and Medium Enterprises (MSMEs), BOI recently established a Micro Finance Bank and also introduced lending to cooperatives. The cooperatives comprises, mainly, those that attended the Entrepreneurial development workshops (Boot Camps) which the bank has been organizing in conjunction with the Commerce Department of the United State of America in some states of the federation. The Industrial/Entrepreneurial Development Program has continued to receive the Bank s attention. The Bank similarly encourages state governments to establish MSME funding schemes under which BOI and state governments contribute in equal proportion solely for the industrial development of their respective states. 10

11 In order to reduce the operating expenses of MSMEs, decrease the hardships posed by infrastructural challenges and thereby enhance their viability as well as competitiveness, BOI is encouraging state governments to build industrial parks in collaboration with their commercial banker and development partners. Under the scheme, MSMEs are to be allotted rented spaces in clusters in the industrial parks that would be provided with some infrastructural facilities as roads, electricity, water, telecommunications services and security. Towards attaining the Millennium Development Goals (MDG),the bank also organized workshop on Women Entrepreneurship Development and Access to Finance in collaboration with Women Affairs Ministry and House of Representatives Committee on Women Affairs and as well first Ladies of some States. The bank also have a Gender Desk handling various loan schemes exclusively for women enterprises in conjunction with the Federal Ministry of Women Affairs amongst others. 11

12 MATCHING FUND The essence of the fund is to empower entrepreneurs in the state. BOI will match whatever amount the State Government is willing to put down. The key areas for which the fund will be utilized include the following: Cooperative Funding: The fund will be used to finance mostly cooperatives utilizing local resources in each local government area. The collateral security that will be required under the scheme is relaxed. Participants will just be required to contribute 10% of the borrowed fund as collateral deposit. 12

13 SME Financing: This will involve provision of plant and machinery, retooling etc of SMEs. Rehabilitation and resuscitation of industries. Finance of clusters and industrial parks. Special Projects. 13

14 CONCLUSION Based on the foregoing, BOI will be delighted to partner with genuine entrepreneurs to foster economic growth and assist in alleviating poverty in the country. 14

15 THANK YOU AND GOD BLESS 15

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