The Management of Bank Of Industry (BoI) disclosed that it has disbursed N83.5billion to more than 776 enterprises that created almost 400000 jobs in the year under review. The most striking achievement in its credit operations was the disbursement of loans that amounted to N5.7billion to Micro Small and Medium Enterprises (MSMEs).
Waheed Olagunju, the Acting Managing Director of BoI stated this at media parley held at Oak Hotel, lekki in Lagos recently that these records represented 205percent increase over the average annual run rate of NI.7billion to MSMEs in the previous year. The three fold increase in loans disbursed to MSMEs in 2015 was due to the establishment of separate directorate for Small and Medium Enterprises (SME) in late 2014 which was headed by Executive Director, he added.
The media parley is annual event organized by BoI for those who covering business for their medium sometimes including editors and analysts.
Olagunju pointed out that the operations of the SME directorate were driven mainly by the fact that the multiplier effects per units of investment in MSMEs are higher than in large enterprises. Accordingly considerable financial and human resources were deployed towards their development. In this regard we decided to bring the bank’s services closer to our esteemed current and potential customers, by increasing our offices to seventeen (17) from seven (7).
He disclosed that the number of business development service providers who were appointed to help SMEs package their loan application was increased to 200 from 122 in the course of 2015. The bank also leverages technology to automate its operations process and develop the following five digital products. SME Mobile App, SME Loan Application and Tracking System, SME Accounting App and the SME Customer Portal were about 700 of our customers now advertise products on BoI’s website.
“The bank strongly leverages its Enterprise Risk Management Framework to effectively manage its risk exposure as non-performing loan ratio improved from 6.92percent in the year under review to 4.01 percent as at end of 2015. Bad loan recoveries of the year stood at N1billion was achieved in the year. The secured a credit rating of AA+ from Fitch Rating, an international rating agency.
In His Words: “Technology is transforming the way we do business. The bank upgraded its core banking application in the year to a more robust version with more functionality. The following value-adding automation projects went live in the year.
Disbursement Availment Tick Process, Credit Application and Tracking process, Vendor Payment Processing, E-bills Pay and Staff Travel Management.”
He noted that as part of efforts towards effectively implementing the objective of Nigerian Industrial Revolution Plan (NIRP) and National Enterprise Development Programme (NEDP), the bank plans to mobilize substantial financial resources from within and outside Nigeria by leveraging its relationship with both domestic and foreign development partners.
BoI Boss emphasized that as we head into the future in our quest to become Africa’s leading world-class Development Finance Institution, the bank shall continue to deepen impact in both core emerging sectors, drive service delivery excellence, support the development SMEs in the country by leveraging strategic partnership, effectively managing enterprise risks as well as leveraging technology.