By Akanimo Sampson
The size of Bank of Industry’s balance sheet has broaden to N1.86 trillion in the financial year, its Chairman, Aliyu Dikko, said even while noting the shocks of the COVID-19 pandemic on the global economies.The bank is however, Nigeria’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).
The International Finance Corporation which produced its pioneer Chief Executive held 75% of its equity along with a number of domestic and foreign private investors. Although the bank’s authorised 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.While its vision is to be Africa’s leading development finance institution operating under global best practices, its mission is to transform the country’s industrial sector by providing financial and business support services to enterprises. The bank has as its mandate, providing financial assistance for the establishment of large, medium and small projects as well as the expansion, diversification and modernisation of existing enterprises; and rehabilitation of existing ones.The chairman said the N1.86 trillion represented an increase of 79.1 percent when compared to the N1.04 trillion it recorded in the 2019 financial year. Dikko ascribed the achievement to the bank’s resilience and strive amidst the challenges posed by the COVID-19 pandemic to businesses.Dikko noted that the increase in total assets by 79.1 percent was driven to a large extent by the successful debt syndications of €1 billion and $1 billion that were concluded in March and December 2020, respectively, stating that the Group’s total equity increased by 15.3 percent from N293.08 billion in the previous year to N336.48 billion in 2020.He informed shareholders at the meeting that Loans and Advances grew marginally in 2020 by 1.3 percent to N749.84 billion, from the year 2019 position. This, he stated, was a reflection of the adverse impact of the challenging operating environment on the growth of new loans.
He further explained that Profit before Tax fell by 9.6 percent from N39.34 billion in 2019 to N35.54 billion, attributing it to the slowdown in economic activities during the year, as well as the various interventions and support initiated by the Bank for its customers.
The chairman said that the bank facilitated the disbursement of N2.5 billion and N1.2 billion under the N-Power and Government Enterprise & Empowerment Programmes to 300,011 and 109,039 beneficiaries, respectively, as part of the bank’s partnership with the Federal Government under the National Social Intervention Programme.
Dikko stated that BOI also made donations that impacted on economic integration and intra-Africa trade, by creating key opportunities for growth in the region particularly in food, pharmaceuticals, logistics and the digital economy.
“Despite the challenging year, I am pleased to announce that the Group’s financial statements remain strong and resilient.
“The COVID-19 pandemic has forced the world to transform much faster than expected from the way we work to how we communicate; from the way we learn, to how we travel.
“We have witnessed improved opportunities in key sectors and industries, notably health care and Information and Communication Technology.
“The IMF projects a growth of 1.5 percent for Nigeria on the back of recovery in oil economy, as well as implementation of key initiatives aimed at spurring economic growth.
“Our broad strategy in the coming year shall mirror that of the government, in terms of focusing on business recovery, whilst keeping an eye on growth and new business opportunities,” he said.
Dikko expressed appreciation to the bank’s Board, its management and staff and relevant stakeholders, including the CBN, customers, government agencies and other strategic partners for ensuring its continued growth and success.
Similarly, the chairman commended the Presidential Task Force on COVID-19, members of the Coalition against COVID-19, other private and public sector agencies, for their immense efforts toward managing and reducing the impact of the pandemic.
“Our thoughts and prayers also go to the frontline health workers and emergency response officials, who risked their lives daily to ensure the safety of others. They are by far the true heroes of 2020,” Dikko said.
