The Bank of Industry (BOI) has secured a landmark €2 billion through global loan syndication, marking the largest funding round in its history. The funds aim to strengthen its financial base and enhance development programs targeting critical sectors, including infrastructure, small and medium-sized enterprises (MSMEs), and industrial diversification.
BOI Managing Director, Olasupo Olusi, announced the achievement during a media event held in Lagos on Thursday to commemorate the institution’s 65th anniversary.
Record-Breaking Funding and Growth Milestones
Speaking at the event, Olusi disclosed that the €2 billion funding is part of over $5 billion raised by the bank since 2017. The funds have been secured through Eurobonds, loan syndications, and green finance instruments aimed at expanding BOI’s footprint nationwide.
He stated, “This month, we concluded a global loan syndication that raised nearly €2 billion, the largest fundraising in BOI’s history and the largest syndication in the history of African development finance institutions.”
Highlighting the bank’s progress over the years, he noted that BOI’s authorized share capital was increased from ₦250 billion in 2007 to ₦500 billion in May 2023. This expansion aligns with its mission to better serve its mandate of industrial growth and MSME empowerment.
Supporting MSMEs and Strategic Partnerships
Olusi emphasized BOI’s commitment to supporting MSMEs, noting the engagement of over 300 Business Development Service providers to assist SMEs nationwide. He also highlighted strategic alliances with 10 SME-focused commercial banks and other financial institutions, including microfinance banks and fintech firms, to boost accessibility to funding.
“In 2014, we began working closely with SME consultants and strengthened partnerships with key stakeholders. Today, we operate a robust on-lending program that ensures SMEs have access to the resources they need to thrive,” Olusi explained.
The bank is also the executing agency for the ₦200 billion Federal Government MSME Intervention Fund, which includes a ₦50 billion Presidential Conditional Grant Scheme, a ₦75 billion Manufacturing Sector Fund, and a ₦75 billion MSME Intervention Sector Fund. According to Olusi, disbursements are ongoing, and the program is already yielding results.
Expanding Services and Future Targets
Looking ahead, the BOI has set an ambitious goal to reach all 36 states by the first quarter of 2025. Plans to expand its offerings to include non-interest banking services are also underway.
In 2024, the bank will focus on six thematic areas: gender, climate and sustainability, youth and skills, digital economy, and infrastructure. Olusi stated that these areas are integral to Nigeria’s economic transformation and will guide BOI’s financing efforts.
This year, the Rural Areas Program on Investment for Development (RAPID) was launched to enhance financial inclusion and support micro and small businesses in rural communities, with a particular focus on youth and women.
Empowering Subsidiaries and Expanding Economic Impact
Beyond direct financing initiatives, BOI is working to strengthen its subsidiaries, such as LECON Financial Services. The bank recently approved a ₦50 billion recapitalization for LECON to enable it to offer cost-effective leasing options for business owners.
“Recapitalizing LECON will empower it to provide affordable financing for equipment acquisition, reducing the financial burden on business owners and fostering economic growth,” Olusi added.
