The functions and objectives of bank of industry in Nigeria are essentially and largely contributory to the nation-building policies of both the government and businesses whose focus tends to be solely on financing various productions. Therefore, the Nigeria Bank of industry is saddled with the responsibility of financing equipment used in value chain production.
The Nigerian Bank of Industry Limited, which is also appended as BOI, is the country’s oldest, largest and most successful development financing institution. It was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank took off in 1964 with an authorized share capital of 2 million (GBP).
Although the bank’s authorized share capital was initially set at N50 billion in the wake of NIDB’s reconstruction into BOI in 2001, it has been increased to 250 billion in order to put the bank in a better position to address the nation’s rising economic profile in line with its mandate. Following a successful institutional, operational and financial restructuring programme embarked upon in 2002, the bank has transformed into an efficient, focused and profitable institution that is well placed to effectively carry out its primary mandate of providing long term financing to the industrial sector of the Nigerian economy.
Some of the financial advantages the industry is know for is its capability to offer a broad range of financial services to micro, small and medium-sized enterprises and various low-income earners both as individuals and as groups. Although the total package must not exceed ₦500,000 per enterprise, the Nigerian bank of industry offers asset financing loans, working capital loans, consumer loans and group loan.
The Current CEO of BOI in Nigeria
Mr. Olukayode Pitan is the Managing Director and Chief Executive Officer of Bank of Industry Ltd, Nigeria’s oldest and largest development finance institution.
BOI BranchesThe Bank proudly has a strong branch network across Nigeria. It has twenty-four branches in the country with a headquarters in Lagos State and a corporate office in Abuja. Their branches across all the Nigerian states include Abia State, Abuja, Anambra State, Bauchi State, Benue State, Borno State, Cross River State, Delta State, Enugu State, Gombe State, Kaduna State, Kano State, Katsina State, Kebbi State, Kwara State, etc.
There is no country in the world that stands without need for the functions and objectives of bank of industry, as this special financial institution is inseparably indispensable to the economic growth and overall development of the nation and its populace.
Functions and Objectives of Bank of Industry in Nigeria.
The functions and objectives of bank of industry in Nigeria are outlined below for your perusal and for the usefulness of the financial institution in the society:
1. It Serves as Reliable Source For Capital Loans and Requirements
One of the functions of the Bank of industry is that it sources for capital loans and its requirements for banks, businesses and organizations who partner with them. What it does is to enter into negotiation terms with these banks, the terms has to do with small and medium scale enterprise financing.
2. It Establishes Large, Medium and Small Enterprises
Another very reliable function of the bank of industry is that it establishes large, medium, and small businesses. Their purpose is to improve on the economic growth of the society; this is because by empowering small and big businesses, the nation too grows in terms of its financial conditions.
3. It Expands, Diversifies, Rehabilitates and Modernizes existing enterprises
The bank of industry as the country’s oldest financial institution helps in expanding, diversifying, rehabilitating, and modernizing existing enterprises by supplying them with the finances that can sufficiently assist them in getting the right tools of production. The Nigeria Bank of industry is saddled with the responsibility of financing equipment used in value chain production. This particular function is also to ensure that businesses succeed through its support.
4. It Finances Plant And Equipment
One of the core mandate of the bank of industry is primarily financing industrial equipment. It is a sure supply of cash to banks, businesses and the various departments of production like agriculture, electrical companies, etc. This supply of cash finances for the purchase of needed equipment for production.
5. It Encourages the Manufacture of Equipment
The Nigeria Bank of industry would disburse funds to the manufacturers or the suppliers of these equipment so as to supply businesses these equipment. This is one of the ways by which the bank encourages the manufacture or production of the equipment of production. By implication, it further strengthens the infrastructure of the country.
6. It Assists Banks, Businesses and Organizations with the Payment of their Loans
The Bank of industry’s assistant or support in ensuing businesses succeed starts from the very time, it is willing to ensure that businesses that applied for loans, access these loans as and when due. It does not just stop there, the Bank of industry will go as far as, ensuring that products do not struggle for sales, it will ensure that businesses make sales, generate profits so as meet their businesses goals and as well, pay back their loans. The Bank of industry has achieved this through Business Development Support Providers. It believes that through Business Development Support Providers, every borrower would be assisted and supported through out the life circle of their businesses.
The Major Objective of the Bank of Industry
The Bank of Industry main objective is to promote industrial sector of the economy, in doing so, it is targeted at financing plants and equipment only. Financing raw materials and working capital of businesses are not in its financing preferences, lest alone financing lands and buildings.
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