The Bank of Industry (BOI), Nigeria’s oldest development finance institution, posted the biggest profit in its 22 years of existence in 2023 as the lender ramped up credit to businesses in Africa’s most populous nation.
BOI’s profit before tax grew by 117.69 percent (N70.7 billion) to N153.81 billion, the highest since its establishment in 2001.
Loans and advances jumped 41.5 percent to N1.14 trillion from N803.6 billion the previous year, due to increased interventions and disbursements to enterprises.
BOI will probably grow its loan book yet again this year, according to
Olasupo Olusi, the managing director.
“We intend to increase the amount of lending to the MSMEs sector, we are focusing on other thematic areas like youth and skills development, sustainability agenda, digital economy, infrastructure development,” Olusi told reporters at the AGM.
“There is no target amount for BOI in the coming year but expect massive growth,” he added.
Total assets under the management of the bank rose 64.6 percent to N3.91 trillion in 2023 from N2.37 trillion the previous year, giving it enough firepower to continue to support Nigeria’s industrial sector.
“BOI has continued its impressive financial performance, showcasing a year of remarkable growth and achievement despite facing significant global and local economic challenges,” Muhammed Bala, BOI’s Chairman, Shareholders Committee said at the bank’s 64th Annual General Meeting (AGM) held on Wednesday at the Transcorp Hilton, Abuja.
Bala said the loans given out last year created approximately 2,198,953 direct and indirect jobs across the country, underscoring the bank’s economic impact.
BOI advanced credit worth N496.717 billion to 75,809 large, medium, small and micro enterprises last year, according to data in its financial statement.
The Bank’s total equity grew 57.7 percent to N678 billion from N427 billion the previous year, reinforcing the institution’s financial stability and capacity for future investments.
As Nigeria’s oldest, largest, and most successful development financing institution, BOI provides funding support for the establishment of large, medium, and small projects and also for the expansion, diversification, and modernization of existing enterprises.
The Bank prides itself in its transformative role in Nigeria’s industrial sector through the provision of financial and business support services.
Olusi said that through disbursement lines and managed intervention programmes, from the Smallholder Farmer Financing Product, to the MSME Distributor Finance Programme, the Bank has contributed to the country’s broader goals of economic recovery and job creation, and empowered Nigerian enterprises.
“As the Bank looks to the future, it remains dedicated to leveraging its financial strength to support the industrialisation and economic transformation of Nigeria,” Olusi said. (BusinessDay)
