‘We recovered 95% of BoI loans to SMEs’ – BoI Ninety five percent of Bank of Industry, BoI loans given to small and medium scale enterprises (SMEs) have been recovered.
“We recovered 95% of BoI loans to SMEs” – MD, BoI
Ninety five percent of Bank of Industry, BoI loans given to small and medium scale enterprises (SMEs) have been recovered according to BoI acting Managing Director, Waheed Olagunju.
Despite inadequate funds, BoI was able to galvanize SMEs into becoming an active force in driving Nigeria’s economy.
Olagunju, spoke with reporters in Abuja last year at a hearing by the House of Representatives Adhoc Committee investigating activities of Federally Owned Development Finance Institutions (FDIs) in Abuja.
He stated that BoI can boost the economy and pull the country out of recession with proper funding.
Sources of BoI Loans and Funding
BoI is privately funded by the World Bank, African Development Bank (AfDB) and some foreign banks. It disbursed loans from N10billion out of N100billion promised by the Federal Government since 2007.
BoI also got a six-year intervention fund of N535billion from the Central Bank of Nigeria (CBN) running from 2010. The performance of BoI loans is 95 per cent which is over above the CBN threshold and the industry average of 11 per cent.
This shows both BoI and the SMEs were equally responsible with the disbursing and use of the BoI loans.
With this up-to-date recovery of BoI loans, the bank was able to create an enabling atmosphere for businesses to thrive with strong monitoring mechanism.
Government alone cannot revive the Nigerian economy
Olagunju noted that “The government alone cannot do all that it takes to resuscitate the economy without private sector participation. Government cannot do much to boost the economy except private investors bring in money. They are the ones who can help the economy out of recession. Government is just to catalyze.
“That is why this current administration’s industrialization drive should be encouraged because industrialization is a multi-faceted process the government alone cannot execute.
“When investors want to come into Nigeria, how they are treated at our embassies in their country when seeking for visas matter greatly.
How the airport security treat them? How the taxi driver and hotel receptionists receive them in Nigerian and lastly, how bureaucrats handle their files while pushing for investment opportunities all determine whether they bring in the money or not.”