Business
BoI Eyes $10bn from Foreign Investors, Disbursed N1.2trn in Seven Years
By Derrick Bangura – President Muhammadu Buhari, on Thursday commended the board and management of the Bank of Industry (BoI) for contributing to the growth and industrialisation of Nigeria.
Buhari made the commendation when he unveiled the bank’s second edifice in Abuja. He said the structure would boost BoI’s Internally Generated Revenue (IGR) potential.
That came as BoI said it had raised about $4 billion from over 100 international banks/investors in over 20 countries within the past four years. The bank revealed that it was also working to increase the figure to about $10 billion within the next few years.
Buhari pointed out that the development finance institution had disbursed over N1.4 trillion to micro, small and medium sized enterprises (MSMEs) at single-digit interest rate. This helped in making access to credit easier and affordable for Nigerians as well as supporting the diversification agenda.
Buhari addressed the gathering via a video conferencing. Dignitaries physically present at the unveiling of the BoI edifice included Minister of Industry, Trade and Investment, Mr. Adeniyi Adebayo; Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele; Chairman of BoI, Mallam Aliyu AbdulRahman Dikko; and the bank’s Managing Director/Chief Executive, Mr. Olukayode Pitan, as well as development partners.
The president expressed optimism that with the raising of a €700 million Eurobond, the BoI would be able to provide more funding for the growth of businesses in the country.
He said, “I am particularly impressed that this world-class building will finance internally generated revenue of the bank. The BoI has continued to successfully execute its mandate as a policy institution of the federal government. Through the Bank of Industry, this government extended the single-digit interest rate loans.
“As part of this mandate, the Bank of Industry disbursed over N1.4 trillion to micro, SMEs, and large enterprises, creating over nine million jobs from its inception.”
Adebayo said BoI had added significant value to the federal government’s industrialisation agenda over the past 62 years and thanked the president and other arms of government for their confidence in the bank.
Buhari said the DFI had been appointed as the implementation partner for several laudable projects towards alleviating poverty, job creation as well as ensuring affordable financing opportunities for Nigerian enterprises.
Emefiele, in his remarks, said all the credit must be given to Buhari for setting the pace for the country’s development and economic diversification as well as the restructuring of the base of the Nigerian economy.
He noted BoI was jointly owned by the CBN and the Federal Ministry of Finance, stressing that the central bank has been working closely with the DFI to ensure that it achieves its mandate.
The CBN governor said, “Since 2014 when I assumed leadership at the CBN, we have ensured that we work closely with BoI to ensure that their core mandate, which is to provide finance for the development of not just the Small and Medium Enterprises but also our large corporate.
“That they are able to complement our efforts in achieving the vision that has been set by President Muhammadu Buhari that says that we should work together to make sure we make finance available to Nigerians and not just make finance available to Nigerians but also make this finance available at affordable interest rates.”
He added, “I will continue to give the credit to the president for setting the vision for the development and diversification of the Nigerian economy. Not just development and diversification but also ensuring that we really work hard to restructure the base of the Nigerian economy.
“From being an import-dependent economy to an economy that is self-sufficient and economy that develops itself and ensures that we reduce imports and begin to export and produce.”
Emefiele said Nigeria has the potential to grow not just its economy but also the economy of other countries in Sub-Saharan Africa.
The BoI managing director disclosed that the bank had raised about $4 billion from over 100 international banks/investors in over 20 countries within the past four years, adding that most of the funds ended up as part of the country’s foreign reserve.
While thanking Buhari for the renewal of his tenure and that of the chairman for another five years, Pitan assured that the board would work harder and, “complete our succession planning project, which is on-going with our consultants, Price Waterhouse.”
Pitan said through the president’s support, BoI had been able to approach the international capital market and conclude various funding transactions, including a $750 million syndicated medium-term loan in 2018, which had now been fully paid; €1billion syndicated loan in March 2020; $1billion syndicated loan in December 2020; and recently the €750million Senior Eurobond (the first by any African national DFI) in February 2022, whose sovereign guarantee was also approved by the National Assembly.
The BoI MD added that these funds had significantly improved the bank’s capacity to continually support Nigeria’s real sector.
On his part, Dikko said the commissioning was an important milestone for the bank, as it signifies the culmination of many years of tenacity and determination to ensure that the edifice was completed and put to judicious use.
He said judging by the increasing profile of the bank and its operations, the new building should open new business frontiers for the country in general.
According to him, for decades, BoI has delivered appreciable results on its mandate towards transforming the country’s industrial sector by providing affordable and long-term financing across key segments and sectors of the economy.
The BoI chairman said in the last five years alone, working with strategic partners, the bank had supported over 3.2 million MSMEs as well as large enterprises, and created over 7.1 million direct and indirect jobs in the process.
He added that the bank’s total assets also grew from N683 billion in 2016 to N1.7 trillion in 2021.
He said, “BOI has consistently aligned its corporate strategy with the strategic objectives of the federal government, especially as it relates to industrialisation and job creation; from Nigeria Industrial Revolution Plan, to Economic Recovery and Growth Plan; and now to the newly introduced National Development Plan.
“To that end, the bank has been a reliable partner in managing several intervention projects and funds targeted towards entrepreneurship, economic rehabilitation and poverty eradication on behalf of the federal government.”
The BoI Tower 2 is a state-of-the-art innovative building with 12 lettable floors with unique features, which include energy-conserving smart lighting system that is motion activated, back-up power system with special panels that are synchronised to deliver power according to demand and high diesel efficiency.
The facility is also built with a building management system, which monitors, supervises, controls and reports on smart building technology systems, including generators, CCTVs, and other gadget
Business
Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa
Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.
The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.
Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.
The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.
Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.
A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.
He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.
This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.
“We must invest in power because it is the biggest determining factor for industries to thrive.
“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.
“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.
Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.
He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.
A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.
Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.
He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.
“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.
Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.
Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.
He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.
“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.
“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.
Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.
He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.
Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.
“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.
While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.
In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.
This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.
“It empowered the state houses of assembly to enact laws on power.
“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.
“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.
According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.
“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.
“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.
Business
Mercedes urges delay of EU tariffs on Chinese electric vehicles
The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.
“We need more free trade instead of new trade barriers.
“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.
“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.
At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.
Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.
The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.
But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.
The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.
Business
ACCI moves to promote business connections, balance work-life
The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.
The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.
Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.
He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.
“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.
“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.
“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.
“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.
According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.
“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.
“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.
“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.
“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.
The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.
Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.
He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.
The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.
The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.
Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.
He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.
“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.
“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.
“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.
“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.
According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.
“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.
“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.
“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.
“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.
The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.
Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.
He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.
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