The Nation Newspaper

Tag: BoI

  • BoI, firms partner to provide alternative power  

    BoI, firms partner to provide alternative power  

    The Bank of Industry (BOI) has partnered with two indigenous firms in the country to provide alternative source of power supply through renewable energy that will open up the industrial space for more entrepreneurs.

    The bank presented two cheques worth  N 75 million to two off-grid solar home system providers, GVE Projects limited and Arnergy Solar limited, under the BOI/UNDP Solar energy programme, to kick start the pilot scheme in six states across Nigeria.

    The Managing Director and Chief Executive Officer, BOI, Mr. Rasheed Olaoluwa, at the presentation over the weekend, said the initiative is to alleviate poverty in the country by tackling the menace of inefficient power supply killing businesses in the country.

    The six states are Kaduna, Osun, Delta, Gombe, Niger and Anambra and according to Olaoluwa  “It will be tailored along the Pay As You Go  (PAYG) module used  successfully  by the telecommunication companies in the country and other states will be added  in the course of the programme”.

    Olaoluwa said: “The less than 4,000MW total electricity supply on our national grid relative to the conservatively estimated 40,000MW electricity demand, for a leading African economy like Nigeria, with a population of 170 million people, is grossly inadequate”.

    He said the partnership is essentially a programme aimed at poverty alleviation and rural economic development with the focus on remote communities that are not on the national grid.

    Tracing the history of power generation in Nigeria, the managing director said; “The first power plant in Nigeria was installed in Lagos in 1898 by the then colonial government and by the end of the last century, it was clear that central power plants had lost their economies of scale and could no longer deliver competitively cheap and reliable electricity to more remote customers through the national grid.

    He said renewable energy sources such as hydro (16 per cent), wind (three per cent) and solar (one per cent) are growing in relevance and commercial adoption on a global scale and the recent G7 meeting in June had agreed to de-carbonise the global economy by phasing out the use of fossil fuel by the end of this century, over the next 85 years, hence the need to embrace other source of energy.

    He said the medium term vision is to have 100,000 homes installed with solar systems in the next five years through a combination of micro-grid and stand-alone solar home systems

    On the partnership benefits, the Divisional head, Large Enterprises, BOI, Mr Joseph Babatunde rather than wait in vain for the national electricity grid, there is a golden opportunity for our rural communities to be empowered with affordable off-grid solar home systems that are operated on a PAYG basis.

    At the presentation were government delegates from Gombe, Kaduna, Osun and Niger states with the head of Arnergy Solar limited, Mr Femi Adeyemo asserting that the project will run for 25 years and will be effectively done so that Nigerians can benefit from it.

  • Ogun, BOI extend N534m loans to Cooperative movement

    Ogun, BOI extend N534m loans to Cooperative movement

    The Ogun State Government in collaboration with the Bank of Industries (BOI) has so far provided loans worth N534 million to Cooperative movement to boost small and medium scale businesses across the State.

    The State Governor, Senator Ibikunle Amosun, stated this during the celebration of the ‘2015 International Cooperative Day’ co-organised by the state Ministry of Community Development and Cooperatives and the Ogun State Cooperatives Federation Limited (OGSCOFED) with the theme “EQUALITY” Choose Cooperative, Choose Equality”.

    Represented by the Head of Service, Mrs. Modupe Adekunle, the governor said about 108 Cooperative Societies in agricultural, non-agricultural, as well as small and medium scale businesses have benefited from the loans across the State, adding that a sum of N500,000 has been provided as 2015 annual subvention to OGSCOFED.

    Giving an assurance that his administration will continue to provide a veritable platform for sustainable growth and development of cooperative societies in all sectors of our State’s economy, the governor disclosed that over 11,043 registered Cooperative Societies, Unions and Apexes with a total accumulated capital of N35 Billion, comprising of shares, ordinary saving and other funds have been mobilised by cooperators, adding that the executives of the societies should come up with practicable measures that would address the menace of overdue and unredeemed loans which has led to the extinction of several societies and unions.

    Speaking earlier, the President, Ogun State Cooperative Federation Limited, Alhaji Abdulrazaq Ola Balogun, said the celebration was in recognition of the International World Cooperative Day, which was recommended by the International Cooperative Alliance (ICA) and the United Nation (UN) to showcase the importance and benefits of cooperative movement to the development of the socio- economic development of the nation.

    He assured of the readiness of Cooperative movement in the state to always support and contribute its quota to the ‘’rebuilding mission’’ of the present administration in the State, noting that the International Cooperatives Day was aimed at strengthening and improving the cordial relationship between cooperatives and local and state government.

     

  • BoI’s automotive fund hits N18.09b

    BoI’s automotive fund hits N18.09b

    The Bankof Industry (BoI) National Automotive Council (NAC) Fund has grown to N18.09 billion since inception in 2003.

    The fund is aimed at developing the automotive sector by financing projects in the industry and  the annual budgetary approval for capital and recurrent expenditures of NAC.

    Bol manages the fund for a fee of five per cent per annum on investible fund, payable quarterly and deductible from the balance of the fund.

    Similarly, it was learnt that NAC receives management fee of two per cent per annum on investible fund payable quarterly and deducted from the balance of the fund.

    For the funding of projects, the fund is broken down into three categories such as, NAC Term loans and Working Capital Financing granted at 7.5 per cent and 10 per cent per annum on term loan and working capital respectively. The  second category, NAC Auto Technicians Support Scheme boasts of N1 billion set aside from the main NAC fund for capacity building in repair and maintenance for artisans, craftsmen, technicians and mechanics.

    The scheme is provided at 7.5 per cent per annum to the partnering Micro Finance Bank (MfB) and 10 per cent per annum to the final beneficiary. The last one is vehicle purchase credit scheme for individuals and private commercial operators, lease finance for fleet operators to purchase vehicles  from local assembly plants in order  to enhance their capacity utilisation and those of component manufacturers.

    BoI also manages funds for state governments such as Anambra , Niger and Kogi states. For Anambra State the fund is geared towards addressing the dearth of funding support to small business owners in the state. Under the scheme, entrepreneurs of Macro, Small and Medium Scale Enterprises (MSME) with production capacities within the state would access to the fund by way of funding equipment supply and requisite working capital.

    These entrepreneurs are basically divided into two major categories namely cooperatives and SMEs both with distinct eligibility requirements and loan servicing conditions and terms, the financial commitment of the state to the programme is over a billion naira. For Niger State the government committed over a billion also to support businesses while Kogi state said that under the programme the small business owners with production capacities within the state would have access to the fund by way of equipment supply and requisite working capital.

    All the collaborations the bank said is to grow small business who are the engine of growth in the different states and also  a vehicle for job creation bearing in mind the millions of youth who roam the street on a daily basis looking for jobs. This intervention by BoI is in addition to a programme recently established to aid SMEs  access an online real time request platform to grow their businesses. The bank said it  took this path to starve the failure rate of applications and the inconveniences encountered by business owners to come physically to their office to make requests.

    BoI Managing Director, Mr. Rasheed Olaoluwa said it will remove the inconveniences suffered by applicants; he spoke toThe Nation in Lagos. He said: “We have come up with a loan tracking system in such a way that when you apply for loan we give you a code. We have also appointed 122 Business Development Service Providers (BDSPs) to help the businesses write good proposal that will attract loans from banks.

    Our newly introduced SME Customer portal where have value proposals and contact details of all our customers. Currently we have data base for over 400 SMEs. This also makes for easier interaction amongst our customers where they can be encouraged to do businesses together.”

  • BoI, Taraba partner on N700m MSMEs Fund

    BoI, Taraba partner on N700m MSMEs Fund

    Taraba State government in partnership with Bank of Industry, (BoI), has signed a N700 million Memorandum of Understanding (MoU) for the establishment of micro, small and medium scale enterprises (MSMEs) Development Fund in the state.

    The business and development fund, for which the state government and the bank have contributed N350 million each, is meant for indigenous entrepreneurs engaged in, or willing to establish MSMEs in the state.

    The Governor, Darius Dickson Ishaku and the Managing Director of BoI, Mr. Rasheed Olaoluwa signed the deal in Abuja.

    He said the MoU would serve as a catalyst for industrialisation.

    “With the MoU just executed, it will serve as a catalyst to the industrialisation process of the state which this administration is committed to achieving, the Governor said.

    “The state government’s N350million contribution to the fund was released to BoI in April 2014, we are using this medium to appeal to the Bank to commence the process of disbursing the loan to the people of Taraba.

    “The loan would enhance capacity building of the people as well as reduce unemployment and poverty among them, we all know that the state is richly endowed with vast fertile land and other natural resources.

    “Majority of the people live in abject poverty due to lack of entrepreneurship and business development knowledge, if these resources are properly harnessed, the state could be poised for a promising future.

    “The partnership would lay the foundation that will bring about the take-off of the industrial development of the state by inculcating entrepreneurship culture among the people of Taraba State.”

    He added that it would also create employment opportunities to reduce over-dependence on government by encouraging them to be self-reliant and provide agro-based industries to take advantage of agricultural raw materials that abounds in the state.

    Olaoluwa said the MoU would foster the industrial development of the state and promote inclusive growth through job and wealth creation.

    He said Taraba was the second state in the Northeast  to partner BoI on its state’ matching fund scheme, noting that the state is renowned for its agrarian nature and rich alluvial soil which made it abundantly endowed in agricultural products as well as large untapped solid mineral deposits.

    He said: “In our quest to promote inclusive growth, BoI has embarked on the identification of thriving real sector SME clutches in all parts of the country.”

    He said  the strategy that would be adopted in the administration of the Matching Fund in the state is to finance projects in the identified agricultural and solid mineral clusters.

    These, Olaoluwa listed, to included the Mambilla Plateau for tea and coffee, Jalingo for rice, Wukari for cassava, Gebu for daity products, Sardauna for kaolin as well as Ibi for barylites.

  • BoI unveils loan application tracking system

    BoI unveils loan application tracking system

    Bank of Industry (BoI) has introduced an online real time request platform to assist Small and Medium Enterprises (SMEs) to grow their businesses.

    The bank took this path to stem the failure rate of applications and the inconveniences encountered by business owners to come to their office to make requests.

    BoI Managing Director, Mr. Rasheed Olaoluwa, said: “We have come up with a loan tracking system in such a way that when you apply for loan we give you a code. We have also appointed 122 Business Development Service Providers (BDSPs) to help the businesses write good proposal that will attract loans from banks.

    “Our newly introduced SME Customer portal, where we have value proposals and contact details of all our customers. Currently we have data base for over 400 SMEs. This also makes for easier interaction amongst our customers where they can be encouraged to do businesses together.”

    He further revealed that BoI also has an online loan application portal and encouraged deserving businesses to take advantage of it as the bank in partnership with one of their consultants has modeled an SME mobile application demo to ensure business template models to assists prospective clients.

    Another BoI executive, Mr. Philip Ikhile said the dearth of SMEs has reached an alarming rate mainly due to poor accounting skills and IT illiteracy. To check the trend, he said a package that works for both accounting and non accounting business people that allows up to 20 sub titles, profit and loss account and indeed to keep track of income and expenditure of every business is up to their customers.

    He said for now it sells as a flash drive for N20, 000 but to encourage a lot of businesses to buy into it the bank, he said, is giving it out for N10, 000 for the first 100 businesses that will show interest. He said it is accounting made easy for small businesses to run efficiently to meet not only daily modern business demands but in compliance to international accounting profession ethics and demands.

    Executive Secretary, Nigerian Association of Small & Medium Enterprises (NASME), Mr. Eke Ubiji, commended the bank for the innovation and said it would help his members to stay in business.

    He also reiterated that many businesses have not grown because of the lack of requisite skill in financial literacy, information technology and funding.

    Ubiji said with his position in NASME he would spread the message to his members and encourage them to key into new technological models that would grow their businesses.

  • BoI boosts SMEs with digital apps

    The Bank of Industry (BoI) has released five digital applications that will enhance development among the over 2,500 Small and Medium Enterprises (SMEs) that are linked to the bank’s website.

    The digital solutions, which will address SMEs challenges in the digital age, is expected to also promote entrepreneurial business in the areas of funding and business exposure among SMEs.

    The products include SME Mobile App, SME Accounting Application (SAApp) Software, Online Loan Application Portal, Loan Application Tracking System, and SME Customer Portal.

    Its Managing Director/ Chief Executive Officer, Mr. Rasheed Olaoluwa, said the products were tailored to address new demand for digital solutions, occasioned by the increase in the number of internet users in the country, which include SME operators.

    He said: “At BoI, we have repositioned our systems, processes and services to take advantage of this new digital and mobile world, in order to offer our customers the benefits of speed, mobility and convenience that came with it.”

    According to him,  in March this year, the lender upgraded its banking application from Equinox to a more robust version called Rubikon, in order to serve its customers better.

    Its Group Head, Information and Strategy, Mr. Thomas Akphororo, said the objective of the apps is to provide members of the public, especially entrepreneurs, easy access to information on their mobile phones, about the key activities and products of the bank, as well as how to avail themselves of the bank’s services.

    The mobile app gives overview of the bank and what it stands for, the category of customers the bank could assist, as well as list of the bank’s accredited business development service providers, with download features.

    An official of Kinesis Consulting Limited,  BoI’s partner, Mr. Philips Ikhile, who spoke on SME Accounting App, said the app would enable users keep proper accounting records of their business transactions, and generate requisite financial statements, without employing the services of an Accountant or Chartered Accountant.

  • BoI and the creative non-oil sector

    OF the government banks saddled with the mandate of developing the non-oil sector of the Nigerian economy, one appears not only dedicated, but proactive in its drive, especially for the film industry. The bank, it appears is fast clipping the lips of filmmakers whose slogan have always been self-eulogising, dwelling on how Nollywood had evolved without government support.

    The seeming ‘playfulness’ of some filmmakers notwithstanding, the near absence of accountable structures aside – irrespective of the failed Project Nollywood, which put Ecobank in serious debt in the mid-2000, Bank of Industry (BoI) appears to have a positive answer to some of challenges of doing business with Nollywood. And rather than being cowed by the bitter experiences of past sponsors, it has developed its own model of ‘rescue and survive’.

    The bank’s creation of an Entertainment Desk, to me, marked the beginning of the seriousness it has shown the Nigerian motion picture industry. And from indications, the consistency that the bank has shown through single digit interest rates on loans for the development of cinema chain, huge budget-exportable films, auditable distribution companies and production studio services are evidences of its ‘from start to finish’ film business financial  management.

    This slow and steady race, as it endures, could be said to be part of the mission to wean Nigeria from its over-dependence on oil.

    Recently, figures released by the Central Bank of Nigeria indicated that the estimated aggregate output in the fourth quarter of 2012 measured by gross domestic product at 1990 basic prices grew by 7.1 per cent, compared with 6.9 per cent recorded in the preceding quarter.

    While real non-oil GDP was estimated to have grown by 8.2 per cent and accounted for 87.4 per cent of the total GDP in the review quarter, real oil GDP, comprising crude petroleum and natural gas was estimated to have declined by 0.17 per cent, compared with the growth of 16.7 per cent in the preceding quarter and accounted for 12.6 per cent of the total real GDP.

    I am particularly thrilled by the efforts of the Bank in support of the establishment of cinema houses across the country. This, in the wisdom of film pundits is the most realistic measure of recouping investment (relatively), in the face of piracy that presently bedevils the creative industry. The rationale is that, the more cinema houses we have in Nigeria, the more the people who get to see the movies first-hand, and the less the people who would desire pirated copies to assuage their thirst.

    Penultimate Friday, a new film house, Viva Cinema, was opened in Ilorin, Kwara State, courtesy of BoI’s ‘Nollyfund’ initiative. In the scheme, an initial of N1.0billion was earmarked, with a single obligor limit of N50million for individual loans.

    The Viva Cinema, Ilorin, is the second to be established by Viva Entertainment Company in recent time, having initially opened a branch in Ibadan, Oyo State.

    This is aside support given to Kene Mkparu, owner of Filmhouse Cinema, who continues to blaze the trail with his fast-expanding cinema chain, having presence in Apapa, Surulere, Kano, Asaba, Ibadan, Port Harcourt and Calabar among other cities in the country.

    On the other hand, the “BOI NollyFund”, I understand, also makes provision for Nigeria’s leading movie producers to receive financial support to produce international quality films and screen them through various platforms of movie distribution available both in Nigeria and internationally.

    It will be recalled that the Bank had in the past, financed the production of Half of A Yellow Sun, an adaptation of Ngozi Adichie’s book, and Flower Girl by Michelle Bello. It is said to also have a stake in the digitization of Silverbird Cinemas, Filmhouse, Viva Cinemas, Ozone Cinemas and G-media among others.

    To ensure that only commercially viable scripts with good storylines benefit from the scheme, BoI set up a NollyFund Implementation Advisory Group made up of, not just cinema management experts, film producers, national film distributors, production and post-production experts, but also journalists and film critics.

    The producer is expected to sign up a reputable distributor who would issue a Minimum Guarantee and provide a cash deposit of 5% of the loan amount.  A Minimum Guarantee is a cash advance payable to the producer by the distributor in exchange for the exclusive rights to distribute a film in contractually stipulated media in agreed sales territory. This, I am sure, is similar to the internationally accepted loan structures for movie production and will definitely provide a great boost to Nigeria’s Nollywood.

    Interestingly, BoI has already accredited some reputable distributors, including G-Media, FilmOne Distribution Company, Silverbird Distribution Company and Genesis Deluxe Distribution Company for the project. Also joined in the scheme are studio operators such as Fans Connect Online Nigeria Limited, aka Afrinolly, Kingsley Ogoro Productions Limited and 4Screams International Nigeria Limited.

    I believe that every filmmaker worth their game should apply for this fund. A notable Yoruba actress and producer asked me if the scheme was still on, and I said yes. I told her to visit www.boinigeria.com/nollyfund for more information on the product features, the procedure for submission of applications, documentation requirements, pricing, amongst other relevant information.

    Many countries of the world recognise that the private sector has the capacity to drive economic growth given the right conditions. I recall that at an empowerment summit for small and growing business, former Minister of Trade and Investment, Olusegun Aganga mandated the Bank of Industry and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)  to create five million jobs within the next two years (2013 and 2014). There is no gain saying that the movie industry has been classified among the sectors with high capacity for employment across all age brackets.

    Therefore, if the giant strides already taken by BoI are anything to go by, I can only share in the bank’s genuine interest for the creative non-oil sector, and tell it to all.

  • BoI urges investment in solid minerals

    BoI urges investment in solid minerals

    The Bank of Industry (BoI) has called on the Federal Government to pay  attention to funding investments in the solid minerals sector, noting that the industry has the potential to attract huge foreign exchange if developed.

    Its Managing Director, Mr. Rasheed Olaoluwa, explained that most countries in the continent have been able to achieve economic growth because they have invested a lot of resources into developing their natural resources.

    Olaoluwa, in a chat with The Nation, pointed out that Nigeria has not been able to develop its solid mineral space, calling on the government to fund a geological data in the country and conduct an international bid to develop the industry.

    “Botswana has been able to make millions of dollars from gold mining. Nigeria should look towards this direction by investing in solid minerals where the country has a comparative advantage to diversify the economy,” he added.

    The BOI boss, however, stated that the development finance institution has an authorised capital of about N250 billion, with N146 billion as paid up. “We want to take steps to look at an alternative way of funding the financial institution because our capital has always come from the government. We are looking at other sources already,” he said.

    He said in terms of Non Performing Loans (NPLs), the bank recorded a relative high NPL in the past, but stressed that the bank had embarked on a number of initiatives to review the NPL downward, including recovery of loans that were not properly monitored.

    “In a nutshell, today, at the BOI, our NPL is less than five per cent. The development bank in Brazil, their NPL is 2.2 per cent. The development bank in South Africa, the NPL is 16.8 per cent. With less than five per cent as NPL, BOI’s ratio is not bad,” he said.

    Olaoluwa, however, said the bank has done a lot to support Small and Medium Enterprises (SMEs), but stressed that what the sector needs goes beyond finance.

    He added that the bank is giving the loans and also looking at making the lending process more efficient to assist the SMEs.

    “This is why we appointed over 100 Business Development Service Providers (BDSPs) to help the SMEs prepare lendable business plans to access BOI’s business loans,” he added.

    He said the bank is automating its processes to give SMEs the opportunity to enjoy the benefit of automation. “A lot of SMEs are unable to keep records because they do not have an accountant, who understands the technical details of debit and credit. We are looking at a model to empower SMEs to transact businesses with their mobile phones on their own without the help of any accountant,” he said.

    The BOI boss decried the lack of patronage of locally produced goods, saying that Nigerians must patronise Made-in-Nigeria goods for the country to achieve economic growth. “It is in our national interest. We are all complaining about lack of jobs, we are complaining about economic issues, if we do not patronise our local producers, we will not make any progress,” he noted.

    According to him, there are people, who have invested in facilities to produce locally, but they cannot sell and they go bankrupt and lay off staff. But if they produce and are able to sell, they are able to grow and hire more people, translating to economic growth.

    “I am not saying that we should support any producer because there are people who are local producers and they produce trash, but there are few companies producing to meet international standards and such companies should be patronised,” he added.

  • BoI provides funds FOR Nigerian filmmakers

    BoI provides funds FOR Nigerian filmmakers

    In furtherance of its commitment to the development of the creative sector, the Bank of Industry (BoI) has instituted a special fund, to advance the works of leading motion picture practitioners in the country.

    Called ‘BoI Nollyfund’, the special Product Program, will provide financial support to filmmakers to produce international quality films and screen them through various platforms of movie distribution available both in Nigeria and abroad.

    To this end, the Bank, which has been at the forefront of providing facilities for film production and distribution chain, seeks application from filmmakers who have got the potentials for exportable creative works.

    However, to ensure that only commercially viable scripts with good storylines benefit from the scheme, the Bank has set up a NollyFund Implementation Advisory Group made up of two cinema management experts, one national film distributor, two production and post-production experts, two film critics/reviewers, and two film producers.

    The Group’s mandate, according to the management of the Bank, is to critically review all the film scripts and associated budgets submitted to BOI by movie producers and make technical recommendations to BOI management for final credit appraisal and subsequent approval in line with the Bank’s Credit Policy.

    In a statement released on Wednesday, the Bank stated that “NollyFund has an initial Program Limit of N1.0billion and a single obligor limit of N50million for individual loans.”

    The Fund, it said, can be accessed by companies that are engaged in film production, while the applicants are also expected to provide commercially viable scripts and demonstrate a track record of successful movie productions.

    “The producer is expected to sign up a reputable distributor who would issue a Minimum Guarantee and provide a cash deposit of 5% of the loan amount.  A Minimum Guarantee is a cash advance payable to the Producer by the Distributor in exchange for the exclusive rights to distribute a film in contractually stipulated media in agreed Sales Territory. This is similar to the internationally accepted loan structures for movie production and will definitely provide a great boost to Nigeria’s Nollywood.”

    Interested movie producers are expected to visit www.boinigeria.com/nollyfund  for information on the product features, the procedure for submission of applications, documentation requirements and pricing, amongst other relevant information.

    Meanwhile, the Bank has already accredited some reputable distributors to support the initiative. They include, G-Media, FilmOne Distribution Company, Silverbird Distribution Company and Genesis Deluxe Distribution Company. Also joined in the initiative are studio operators such as Fans Connect Online Nigeria Limited, aka Afrinolly, Kingsley Ogoro Productions Limited and 4Screams International Nigeria Limited.

    It will be recalled that the Bank of Industry had in the recent past, financed creative industry projects such as Half of A Yellow Sun, Flower Girl, Digitization of Silverbird Cinemas, The Filmhouse, Viva Cinemas, Ozone Cinemas and G-media among others.

  • BoI gives N10b loan to 80 firms in Oyo

    BoI gives N10b loan to 80 firms in Oyo

    NO fewer than 80 firms and micro enterprises in Oyo  State have received loans worth N10billion from the Bank of Industry (BoI), its Managing Director, Mr Rasheed Olaoluwa, has said.

    He made this known at the inauguration of bank’s Western Regional Office and Oyo State office, at Iyaganku, Ibadan, Oyo State capital yesterday.

    Olaoluwa said: “The Oyo State government  signed a Memorandum of Understanding (MoU) with BoI in 2012, which culminated in the establishment of OYSG/BoI micro., small and medium enterprises, matching fund scheme to the tune of N10 billion. To date, the bank has recorded a total loan approval of N375 million in respect of 68 companies.

    “Oyo State is very central to BoI’s strategy of ensuring that our development finance services are brought closer to the people of the state, especially in our bid to vastly improve our services delivery efficiency, while also reaching out to all parts of the Southwest region.”

    According to him, additional disbursement to 17 other enterprises in the sum of N104 million is being processed.