Managing Director and Chief Executive Officer of the Bank of Industry (BOI), Dr. Olasupo Olusi, has attributed the institution’s recent successful syndication of €1.879 billion to growing confidence among international investors in Nigeria’s economic prospects, adding that the fundraising event marks a historic milestone as the largest amount ever secured by an African Development Finance Institution (DFI).
In remarks made in Lagos over the weekend, Dr. Olusi expressed pride in BOI’s achievement, stating that it positions the bank to enhance enterprise development across Nigeria.
The funds raised are earmarked for micro, small and medium enterprises (MSMEs), a sector critical to the nation’s economic landscape.
Dr. Olusi also expressed optimism regarding the anticipated launch of the Federal Government’s National Credit Guarantee Company (NCGC) by the first quarter of this year, aligning with President Bola Ahmed Tinubu’s vision articulated in his New Year address.
As a key promoter of the NCGC, BOI aims to deploy these resources strategically, sharing risks with the NCGC to facilitate increased lending to SMEs and bolster private sector growth.
President Bola Tinubu commended BOI for its leadership in improving credit delivery within Nigeria’s financial system and reaffirmed his administration’s commitment to enhancing access to credit for individuals and critical sectors of the economy.
The establishment of the NCGC is expected to expand risk-sharing instruments for financial institutions and enterprises, with operations slated to commence before the end of Q2 2025.
To mitigate risks associated with non-performing loans, Dr. Olusi indicated that BOI plans to develop a robust model aimed at strengthening its portfolios.
The recent syndication not only underscores BOI’s reputation as a trusted partner in Nigeria’s industrialization but also attracted significant interest from over 10 new international investors from regions including the Middle East and Asia.
The syndication was notably oversubscribed by 187.9 per cent, facilitated through an innovative dual-layer guarantee structure supported by the Africa Finance Corporation (AFC) and the Central Bank of Nigeria (CBN).
The mechanism enabled BOI to secure interest rates significantly lower than those typically associated with Nigerian debt instruments, resulting in estimated savings of approximately 3.6 per cent per annum or N295.7 billion over a three-year tenor.
This favourable financing environment is poised to reduce borrowing costs for the real sector, enhancing competitiveness.
Following this successful capital raise, BOI’s balance sheet is projected to swell from N3.9 trillion in 2023 to N7.1 trillion by December 2024, reinforcing its capacity to meet Nigeria’s developmental financing needs.
