The Bank of Industry (BoI) in 2019 made a total disbursement of N53.0 billion to the development of Micro, Small and Medium Enterprises (MSMEs) segment in the country, a 56.3 per cent year-on-year increase from the N33.9 billion disbursed in 2018.
This was announced at the Bank’s 60th Annual General Meeting held virtually in line with COVID-19 protocols of the Federal Government.
The bank in a statement said, “Indeed during the year under review, the BoI disbursed a total of ₦234 billion to a total 10,145 enterprises, thereby facilitating the creation of an estimated one million direct and indirect jobs.”
Presenting the Group’s financial scorecard for the year 2019, the chairman, board of directors, Mr. Aliyu Abdulrahman Dikko, stated “I am also pleased to report that the group’s balance sheet remains strong while our business operations are in line with both regulatory requirements and global best practices.”
According to him, the Group grew its total equity by 13.5 per cent to ₦293.09 billion for the year ended 2019 over 2018 position of ₦258.24 billion. However, he noted, the group’s total asset dropped slightly by 2.7 per cent to ₦1.04 trillion.
The Group also recorded an increase of a Profit Before Tax by 7.3 per cent to ₦39.34 billion year-on-year over the ₦36.66 billion recorded in 2018.
On loans and advances, the chairman said that despite a slow start in the first quarter of the year due to the build-up to the 2019 general elections, the Group recorded a growth of 16.7 per cent from ₦634.11 billion in 2018 to ₦740.03 billion in 2019.
Interest income and interest expense increased by 20 per cent and 54 per cent on a year-on-year basis respectively, due to increase in loan book as well as the impact of borrowings.
He said, “in the course of the year, we made significant progress towards improving the size of our loanable funds, leveraging our strategic partnerships in the international market and the support of the Central Bank of Nigeria. The Bank was able to raise €1 billion (One Billion Euro) through syndication by international banks for on lending to SMES to create jobs.”
The managing director of BoI, Mr. Kayode Pitan, described the year under review, which marked the 60th anniversary of Nigeria’s oldest Development Financial Institution, as a significant year for the Bank.
“As a Bank, we have survived 60 years and by God’s Grace, the Bank has done very well,” he said. “The balance sheet of the Bank, after 60 years, is now slightly over one trillion Naira; and the profit for last year was also very good.”
Beyond the profit, he said, the Bank made strong impact on the economy by disbursing over N200 billion in 2019 to over 10, 000 different institutions and organizations, including the about 60 per cent increase in disbursement to the SME segment.
Earlier, the Bank’s shareholders approved new appointments to its Board. Mr. Shekarau Omar was appointed executive director, Small and Medium Enterprises, a position that was previously held by Dr. Waheed Olagunju, who retired from the bank.
Also, two non-executive directors, Dr. Bakari Wadinga representing the Federal Ministry of Finance; and Mr. Femi Edun representing the Federal Ministry of Industry, Trade and Investment, left the Board in 2019.
Subsequently, two new Non-Executive Directors, Mr. Alexander Adeyemi (representing Ministry of Finance) and Mr. Salisu Bala Kura (representing Federal Ministry of Industry, Trade and Investment) were appointed.
Mr. Dikko used the opportunity to thank his colleagues on the Board “for their diligent oversight, and the Executive Management and the staff for their hard work and tenacity which has continuously positioned the Bank as a leading development finance institution.”
Mr. Pitan, who noted the year 2019 was a very good year but that would not have been possible without the help of stakeholders, thanked major stakeholders for their tremendous support.
He said: “I want to thank the CBN Governor, Mr. Godwin Emefiele and the Directors; the Minister of Finance, Budget and National Planning Zainab Shamsuna Ahmed; and Otunba Niyi Adebayo, Minister of Industry, Trade and Investment for their part in making 2019 a good year for us.”
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