Bank of Industry Limited (BOI) is Nigeria’s foremost development finance institution (DFI). It was incorporated in 1959 as the Investment Company of Nigeria Limited and reconstructed into the Nigerian Industrial Development Bank in 1964. The bank transformed into Bank of Industry in 2001, following the merger of the mandates of NIDB, Nigerian Bank for Commerce and Industry and the National Economic Reconstruction Fund.
BOI has a mandate to transform Nigeria’s industrial sector by providing financial assistance for the establishment of large, medium and small enterprises. It also drives the expansion, diversification and modernisation of existing enterprises, and the rehabilitation of ailing ones. This mandate is geared towards supporting projects with potential developmental impact, and the capability to generate considerable multiplier effects, such as industrialisation, job creation, and poverty alleviation, which would have lasting positive effects on the socioeconomic condition of Nigerians.
BOI is a key implementing agency of the Nigerian Federal Government’s economic and industrial growth plans, such as the Nigeria Industrial Revolution Plan and the Economic Recovery and Growth Plan. Consequently, the bank focuses on key sectors identified for growth by the government: agro & food-processing, oil & gas, engineering & technology, solid minerals, healthcare & petrochemicals. BOI also focuses on growing key emerging sectors and economic segments, such as the creative industry and renewable energy –particularly solar energy – whilst also giving particular attention to businesses led by women and youth entrepreneurs.
BOI has a vision to become Africa’s leading DFI operating under global best practices. As such, the bank’s strategy is supported by three pillars: deepening penetration in key markets; building a highly customer-centric bank through service delivery excellence; and strengthening the bank’s operating model capabilities across people, technology and risk management.
Since 2015, BOI has provided almost NGN600bn ($2.1bn) worth of financial support at a low interest rate to 4,448 enterprises. This support has led to the creation of over 2.5 million jobs in the period. The bank also facilitated the disbursement of an additional NGN30.3bn to 1,804,154 beneficiaries under the federal government’s social intervention initiative – the Government Enterprise and Empowerment Programme, which is targeted at informal businesses at the bottom of the pyramid. An additional 199,989 jobs were also facilitated by disbursing NGN15.3bn through the N-Power programme; a skills development and knowledge sharing and acquisition scheme, which is part also of the government’s social intervention programme.
Promotion and support of gender equality are also part of the bank’s strategic focus. As a result, BOI provides financial support through its dedicated gender desk to ensure there is sufficient growth and development of women-owned businesses. BOI is also a strong advocate for women’s rights and regularly participates and sponsors events that support female entrepreneurship and wellbeing.
Given that Nigeria is home to almost 200 million people, the scale of the bank’s achievements could not have been possible without developing strategic partnerships with state governments, foundations, high net-worth individuals, private, public and multilateral institutions – all of which have been supportive in funding, business advisory and capacity building.
Through these partnerships, the bank has been able to raise about $1.5bn in the last 18 months including: $750m syndicated loan facilitated by AFREXIM and 15 other international financial institutions, $200m from the Nigerian Content Development and Monitoring Board for oil and gas businesses, $100m from the Africa Development Bank AfDB, and NGN100bn Industrial Fund from Central Bank of Nigeria. BOI also recently signed a memorandum of understanding with the Export Import Bank of China for a $500m line of credit to fund modular refineries.
Furthermore, the bank’s partnership with AfDB and GBRW Consulting provided technical training and business advisory services to support the bank’s operations. In addition to this, the bank has an ongoing partnership with over 200 business development service providers to offer business advisory services to its customers.
BOI has also leveraged other local associations and centres such as Standards Organisation of Nigeria, Federal Institute of Industrial Research Oshodi, Enterprise Development Centre and Co-Creation-Hub for sector-specific certification or training.