Article Summary
- BoI Chairman said the bank grew its asset size to N2.3 trillion under President Muhammadu Buhari’s administration, multiplying by more than three times in eight years.
- He added that MSMEs face risks of losing money, making it difficult for financial institutions to provide loans.
- He then called on the government to create a corporation that guarantees SMEs to increase lending support.
The Chairman, Board of Directors of the Bank of Industry (BoI), Alhaji Aliyu Dikko, has said the bank grew its asset size to N2.3 trillion under President Muhammadu Buhari’s administration.
Dikko, made this known while speaking during the 63rd Annual General Meeting of the bank in Abuja. He said:
- “If you look at those eight years when we came on board, the total assets of the bank were about N630 billion. Right now, it has grown to about 2.3 trillion. So, you can see that it has multiplied by more than three times. So, the bank has done excellently well in the last eight years.”
BoI’s 2023 projectionsÂ
Speaking further, the board chairman said Africa’s economic growth was expected to remain slow due to spillover effects from uncertainties in the global environment.
He said as the debt servicing burden rises, a growing number of African governments are expected to seek bilateral and multilateral support towards managing the adverse economic impact.
He quoted the United Nations Department of Economic and Social Affairs as projecting Africa’s growth to slow from an estimated 4.1% in 2022 to 3.8% in 2023. He said:
- “The IMF has, however, upgraded Nigeria’s 2023 economic growth projection to 3.2% from 3.1% earlier reported.
- ” The IMF noted that the upward review was due to sustainable measures being implemented by the government to address insecurity issues in the oil sector.
- “The Chief Executive Officer of NNPC projects that daily oil production in the country can hit 2. 2 million barrels in 2023 if adequate security measures are put in place to protect oil assets.
- “Based on the foregoing, it is expected that exchange pressure on the naira should fairly reduce in the year due to the projected increase in foreign exchange revenue.
- “Thus, a peaceful political transition to a new government following the 2023 presidential elections is also expected to further boost investor confidence in Nigeria.”Â
Possible risks
On downside risks and potential headwinds, he expressed hope that economic advisers and policymakers would be circumspect and proactive in taking adequate measures to manage the risks.
He also reiterated the bank’s commitment to enable seamless integration with new developments and ensure purposeful growth in the economy.
Dikko also commented on the possible risks associated with Micro Small and Medium Enterprises (MSMEs), pinpointing the possibility of losing money easily as one of them.
According to him, this makes it difficult for financial institutions to easily give out loans to small business owners.
- “What we are trying to get the government to do is create a corporation that guarantees SMEs. Once we have that, the bank will be willing to give to the SMEs because they know that whatever they give to them is guaranteed by any organisation”
