Why LCCI, MAN Others Oppose Senate Scrapping BOILCCI, MAN Others Oppose Senate Scrapping BOI

Why LCCI, MAN Others Oppose Senate Scrapping BOI

LCCI, MAN Others Oppose Senate Scrapping BOI. Says scrapping of BOI unnecessary as it has been effective in its functions.

Professional groups and workers’ union Oppose Senate on BOI

Many professional groups and workers’ union including the Lagos Chamber of Commerce of Industry and the Manufacturers’ Association of Nigeria  have opposed the Senate’s plan to annul the Act that establishes the Bank of Industry (BOI) and replace with a National Development Bank of Nigeria (NDBN).

If the NDBN Bill, which has passed a second reading at the Senate goes through, the development bank will have $323 as start off seed capital. It should be noted that the Buhari government was warned by LCCI and MAN on their Forex policies and predicted mass unemployment and many factories shutting down in January if care was not taken.

These are the reason they oppose the senate:

  • The Lagos Chamber of Commerce and Industry, the Manufacturers Association of Nigeria, the Association of Professional Bodies of Nigeria and the Trade Union Congress say the action will lead to wastage of time and resources.
  • MAN President believes the proposed bank may suffer political interference in its operation, and this will grossly affect the performance of its core mandate because of the heavy depend on government funding and the make-up of the Board of Directors.
  • National Assembly should assist the Executive in making operational the Development Bank of Nigeria established by the last administration in March, 2015 with the aim of increasing the capital base of the BoI and the other DFIs for effective delivery of their mandates.
  • BoI it was the outcome merging the defunct Nigerian Industrial Development Bank, Nigerian Bank for Commerce and Industry and the Nigerian Economic Reconstruction Fund in 2001 and it has been functioning and delivering on its mandate within the available funding capacity.
  • Manufacturers would not fund the proposed development bank.
  • Section 16[1] of the Bill, listed MAN as one of the possible sources of funding for the NDBN but “Members of MAN ought to be beneficiaries. So, it is hard to see how they will also be part of the institutions that will fund for the bank.
  • The Lagos Chamber of Commerce and Industry also said BoI was a product of the merger of four defunct banks, and it would be a waste of legislative time and a distraction to all stakeholders for the process to continue.
  • The TUC believes BoI was performing its assigned duties to the satisfaction of stakeholders and the bank should be restructured if it was experiencing legal or structural issues.
  • APBN believes the track record of the BoI will be damaged and it would affect the bank and the nation.
  • APBN believe BoI should continue to function as a separate entity since has performe well over the years and should be re-capitalised to continue to play its statutory role and suggested that the moribund NBCI and NERFUND could be liquidated.




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