BoI Disburses N496.72bn Credit to 75,809 SMEs, Adds 2.2m Jobs to Economy

James  Emejo in Abuja

The Bank of Industry (BoI) yesterday disclosed that it disbursed the sum of N496.72 billion loans to 75,809 beneficiaries including large, medium, small and micro enterprises in 2023.

Speaking at the bank’s 64th Annual General Meeting (AGM) in Abuja, Chairman, Shareholders Committee, Mallam Muhammed Bala, also said the development finance institution grew its profits to N153 billion. He said the bank had maintained an impressive financial performance, showcasing a year of remarkable growth and achievement despite facing significant global and local economic challenges.

He said these efforts have had a substantial socio-economic impact, creating about 2.20 million direct and indirect jobs across the country.

According to him, the bank’s total assets surged by 64.6 per cent to N3.91 trillion from N2.37 trillion which underscored the bank’s commitment to enhancing its financial foundation and expanding capacity to support Nigeria’s industrial sector.

Bala pointed out that this had impacted the bank’s fortunes as Profit Before Tax (PBT) increased by 117.69 per cent to an historic N153.81 billion compared to N70.7 billion in 2022.

He said total loans and advances increased substantially by 41.5 per cent to N1.14 trillion and N803.6 billion respectively, due to increased interventions and disbursements to enterprises, which reflected the bank’s ongoing efforts to provide essential financial support to businesses across various sectors.

The bank’s total equity witnessed a significant boost, growing by 57.7 per cent from N427 billion to N678 billion, reinforcing the institution’s financial stability and capacity for future investments.

Commenting on the outlook for 2024, Bala said, “Subsequent to President Tinubu’s Renewed Hope agenda and in tandem with the National Development Plan (2021-2025), the Bank of Industry will continue to implement its medium-term corporate strategy for 2022-2024, on effectively sustaining the trajectory of supporting Nigeria’s industrial growth.”

In his remarks, the Managing Director/Chief Executive, BoI, Dr. Olasupo Olusi, said the bank has not only contributed to Tinubu’s goals of economic recovery and job creation but also empowered Nigerian enterprises, particularly the micro and small businesses to remain in operation sustainably.

He said the success was achieved through the bank’s disbursement lines and managed intervention programmes, including the Smallholder Farmer Financing Product, MSME Distributor Finance Programme, Fintech/Digital Lending Product, Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES), the Business Resilience Assistance for Value-Adding Enterprise (BRAVE) among others.

Olusi added that BoI’s continued focus on strategic lending and investment in critical sectors had been instrumental in achieving these outstanding results.

He said: “As the bank looks to the future, it remains dedicated to leveraging its financial strength to support the industrialisation and economic transformation of Nigeria.”

BoI remains the country’s oldest, largest, and most successful development financing institution, providing financial assistance for the establishment of large, medium, and small projects as well as the expansion, diversification, and modernisation of existing enterprises. The bank seeks to transform the country’s industrial sector by providing financial and business support services.