By Stanley Opara

Thursday, 27 Jan 2011

The Bank of Industry approved loans and investments worth N114.3bn in 2010, the Managing Director of the bank, Ms. Evelyn Oputu, said on Wednesday.

Oputu said this represented an increase of 1,066.3 per cent over N9.8bn approved in 2005.

She spoke at the 10th Sharing Experience Series (2011 edition) organised by the Harvard Business School Association of Nigeria.

She added that BOI’s percentage of annual lending to Mirco, Small and Medium Enterprises increased to 96 per cent in December 2010 from 35 per cent in 2005.

Oputu said the cumulative number of approved loans and investments of the bank also grew by 1,125 per cent from 88 as at 2005 to 1,078 by December 2010.

“Also, the value of fresh loans and investments rose by 1,066.3 per cent from N9.8bn to N114.3bn, within the same period,” she said.

She noted that portfolio at risk declined from 65 per cent in December 2005 to less than 21 per cent in December 2010, resulting in improved efficiency and productivity for the bank.

The managing director said that in recent times, BOI had embarked on a number of initiatives designed to facilitate the attainment of the Millennium Development Goals in Nigeria.

She added that the bank’s investment portfolio had been expanded mainly in favour of MSMEs in view of their high multiplier effects per unit of investment.

Oputu said, “In order to deepen the developmental impact of assisted projects, priority is being accorded those that utilise local raw materials, have high employment, export generating potential and promote linkages between micro, small, medium and large enterprises as well as those promoted by women.

“In order to cascade BOI’s credit delivery process, we initiated a lending scheme to cooperative groups under collective guarantee arrangements and also established a microfinance bank.”

The BOI boss also urged the Federal Government to ensure that the manufacturing sector grew hand-in-hand with the educational sector, which she said would provide the needed capacity for productivity, economic advancement and social well-being.

However, the President/Chairman, Harvard Business School Association, Nigeria, Chief (Mrs.) Nike Akande, said there was the need for the country to develop entrepreneurial skills in young people, “especially at their constructive stage in life.”

Akande also called for good mentoring in the system, which she explained was the reason behind the involvement of some schools like Kings College, Vivian Fowler Memorial College and Chrisland Secondary School in the HBSAN programmes.

She said that in a bid to sustain the level of economic progress so far made in the country, young people should be guided through the journey to leadership and management.

 

Source: Punch