BOI Assures Manufacturers Of, Funding Access

As its new board settles down for business, the Bank of Industry (BOI) has assured sector operators who would not benefit from the first tranche of Central Bank of Nigeria’s (CBN) life-line that another funding opportunity would be provided by the apex bank.

BOI’s Managing Director, Ms. Evelyn Oputu, gave the assurance recently in Lagos at a Business Luncheon organised by the Lagos Chambers of Commerce and Industry (LCCI).

Significantly, the bank’s new board chairman- Alhaji Abdulsamad Rabiu-Chairman BUA group of companies- had earlier assured at the board’s inauguration in Abuja, that BOI would work harder at ensuring a better future for SMEs.

Oputu said that the first tranche of N200 billion did not mean more fund would no longer be released.

She assured the operators of more widows of opportunities to enable them re-tool their factories.

Oputu reiterated that the N200 billion fund was to tackle the prevailing liquidity squeeze so as to provide credit access to operators for the restructuring of moribund factories, among others. 

She disclosed that the processing of applications for the fund was conducted within two weeks.

“We have concluded the arrangement (application) and we have submitted our report to the CBN, because they own the fund,” she said. 

Oputu added that the fund was not only meant for firms that had closed down, but also for those that are still operating and had outstanding debts with commercial banks.  Lauding the bail-out scheme, the BOI chief reiterated that the real sector was the engine of growth of any economy and that the country’s economy could be sustained and diversified through the sector.

She added that the sector’s production would strengthen economic linkages and created domestic technological capabilities and employment generation.

She, however, lamented, “the performance of the real sector in terms of production and growth rate has unfortunately been relatively low.”

She, therefore, urged the operators to be export-oriented, upgrade their skills and achieve higher levels of technological sophistication that would make them competitive in the global market.

In his response, LCCI President, Chief Femi Deru, urged BOI to ensure that SMEs have access to the fund.

He noted that the sector was worse hit by the current liquidity squeeze and lack of long- term loans .

The theme of the business luncheon was:”Issues and challenges of the real sector”.