NationalMirror Industrialists to access AFDB $500m facility soon – BOI by OLUFEMI ADEOSUN on Feb 3, 2014 Posted under: Business, Business Courage Industrialists may soon begin to access the $500m Africa Development Bank, AfDB facility to the Bank of Industry, BOI, as the bank has announced its readiness to perfect all documents for the release of the funds. This is even as the bank put the total loan disbursement across various sectors of the Nigeria economy within two years at N870.44bn. The Chairman, Shareholders’ Committee of BOI Mohammed Kyari Dikwa disclosed this at the weekend in Abuja during the bank’s 53rd Annual General Meeting. According him, Nigerian industrialists would soon begin to benefi t from the $500million credit line facilitated by the Federal Government to boost the country’s industrial base as soon as the bank complies with the stipulated disbursement requirements. He said, “It is with the expectation to deepen the Bank’s credit delivery process that the Federal Government facilitated the approval of the $500 million Line of Credit from Africa Development Bank (AfDB) for BOI to utilize for the funding of the industrial sector at concessionary rate. “As soon as BOI complies with the disbursement processes which has reached an advanced stage, the Nigeria industrialists will start benefi ting from the incentive-backed facility.” Given the breakdown of the N870.44bn disbursed across the various sectors of the country’s economy within the years under review, he said that the agro-business benefi tted N53.3billion while the entertainment sector gulped N337.60million. Other sectors that have benefi tted from the bank’s loan disbursement also include, Aviation (181bn), Textile (50.39bn), Rice(N2.8bn),NAC fund(N9.74bn) Cement(N0.719bn) and Restructuring and Refi nancing Fund(N229.18bn). Speaking on the significance of the various loan facilities to the Nigerian economy, Kyari Dikwa noted that the astronomical increase in loans and advances to the real sector as well as increases in other comprehensive incomes contributed signifi cantly to the 53.4 per cent increase in gross income from N10.013 billion in 2011 to N15.358 billion in 2012. For instance, he said while the total fund disbursed under RRF schemed increased from N218.8bn as at December 2011 to N229.18bn in 2012, representing fi ve per cent increment, number of benefi ciaries also increased from 498 to 534 during the same period. He added that a total of 23 commercial banks and one Development Finance Institution participated in the RRF scheme, which he said has enhanced the liquidity of participating banks considerably. The RRF covers 12 broad sectors with chemicals and plastic sectors having the highest exposure of 30.42 per cent while transportation had the least of 0.46 per cent. “Direct employment by benefi ciaries increased from an average of 62,097 before intervention to 76,581 after intervention representing an increase of 23 per cent. The scheme had generated an indirect employment in multiples of this fi gure. Cumulative turnover of the obligors increased from N503.17 billion per annum before intervention to N659.15 billion after intervention,” he said. He further explained that, going forward, BOI being a critical intervention agency in the actualisation of the Federal Government’s transformation agenda would continue to fund real sector of the economy while looking ahead for enhanced collaboration with both local and foreign partners in its bid to discharge on the mandate. “While the Bank expands its network of partnerships both locally and internationally, it shall sustain existing collaboration programmes with its domestic and foreign development partners in the public and private sectors and also pay considerable attention to the Federal Government’s priority sectors. “The Bank of Industry will continue to work closely with other Development Finance Institutions and Development Promotion Agencies to achieve synergy and higher effi ciency in the process of pursuing Nigeria’s economic development programmes, he said.
Posted on: Mon, 03 Feb 2014 05:42:33 +0000
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