AGM: BOI boosts Nigerian economy with N870bn in two years, posts 53.4% income growth
Bank of Industry, BoI has put the total loan disbursement across various sectors of the Nigeria economy within two years at N870.44bn and recorded more 53.4 per cent growth in its income in 2012, its chairman Shareholders Committee, Bank of Industry, BoI, Alhaji Muhammed Dikwa has disclosed.
Speaking at the 53rd Annual General Meeting of the bank in Abuja last weekend, Dikwa said that loans and advances to the real sector of the economy and other comprehensive incomes accounted for the performance. According to the chairman, the gross income rose from N10.01 billion in 2011 to N15.35 billion in 2012.
Giving the breakdown of the N870.44bn disbursed across the various sectors of the country’s economy within the years under review, he said that the “agri-business value chain, including rice, cassava and the cotton, textile and garment sub-sectors” benefitted N53.3billion while the entertainment sector gulped N337.60million. Other sectors that have benefitted from the bank’s loan disbursement also include, Aviation (181bn), Textile (50.39bn), Rice (N2.8bn), NAC fund (N9.74bn) Cement (N0.719bn) and Restructuring and Refinancing Fund (N229.18bn).
Dikwa said that the bank surpassed its record of 2011 in terms of development loans and advances to small businesses in the country. He also stated that “impairment charges” rose from N40.048 million in 2011 to N6.989 billion in 2012 and attributed the achievement to the adoption of International Financial Reporting System by the bank.
The chairman, however, announced that the bank’s profit after tax dropped from N1.85 in 2011 to N1.10 in 2012, describing the decrease as “drastic”. He said that in spite of the drop in profit “which is mainly attributed to IFRS adjustment, the modest sum of N178, 642, 300 is being proposed as dividend to be paid to shareholders.”
He expressed optimism that the bank would record tremendous improvement in its operations in 2013, saying that it had remained focused in the transformation of the country’s economy. The chairman noted that the bank made substantial investment in building the capacities of its staff in key professional areas, including investment risk evaluation, monitoring and portfolio management skills. He said that the bank carried out intervention in “Agri-business” in 2012, as demonstration of its role as a key driver of the transformation agenda of the present administration.
He added that the bank, in collaboration with the United Nations Development Programme, UNDP, provided technical and financial support to prospective investors in alternative and renewable energy, and entertainment subsector with N337.60 million. “The necessity of these interventions holds sway in view of the fact that the non-oil sector drives real Gross Domestic Product, GDP growth in the economy”, he said.