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

PRODUCTS AND SERVICES

          OF

BANK OF INDUSTRY (BOI)

  Shea Conference 2013
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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 self-
sustaining 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
the development of SME sector in Nigeria on a sustainable basis.2

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%
                                               -------------
                                                100.00%
                                               ========
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•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
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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.

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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

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
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subsidiaries.

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,   8
  Micro Finance Bank and Bureau De Change.

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

• 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

• 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

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.
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– 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.

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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.
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THANK YOU AND GOD
       BLESS

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