Catalysing Import Substitution on a Transformational Scale
The Large Enterprises Directorate is focused on providing low-cost, long-term funding and financial advice to critical sectors of the Nigerian economy. The intent is to catalyse domestic production and job creation on a transformational scale, enhance local industry competitiveness, attract domestic and foreign investments, integrate local industries into domestic, regional and global value chains, grow export earnings and positively impact the overall economic prosperity of Nigeria.
The Large Enterprises Directorate also manages special intervention funds provided by the Central Bank of Nigeria (CBN) to support the economy’s power, aviation, manufacturing, cotton, textile and garment sectors. Additionally, the Directorate is also focused on supporting the establishment and revitalization of Special Export Processing Zones and Special Agro Processing Zones working in partnership with key stakeholders like the African Development Bank (AfDB).
Large Enterprise Group
The Large Enterprises Directorate is comprised of ten (10) strategic business groups
Agro Processing Group (APG) is a Business Unit under the Large Enterprises Directorate with a key focus on driving lending and other support services within the non–food (Agro-based) sector of the economy, such as Cotton, Textile and Garment (CTG), Wood, Leather, Rubber and Paper Products to mention a few.
Over the years, the Bank of Industry has emphasized the growth of Agro-processing and related agric. businesses because the sector not only inspires the virtuous cycle of increased agricultural productivity, and industrialization, along the value chain, but also provides the creation of high domestic employment, poverty reduction and a major frontier of economic transformation in Nigeria.
Products Under Agro-Processing
Culture & Creative Industries
The Creative Industry Group was set up in 2011 to enable the bank to intervene in the sector by financing projects that are viable and consistent with the institution’s developmental policies/roles in the Nation’s economy. The Bank’s decision to set up the department was further justified following the release of the Nation’s rebased GDP in 2013, which revealed that the industry contributed 1.42% to the Nation’s Gross Domestic Product. Consequently, the creative industry is now considered a critical sector of the economy.
The Bank also has established several partnerships with various institutions including the British Council and has received numerous mentions for great initiatives in the Creative Industry at various international Fora. This has placed the bank on the global stage of Development Finance Institutions (DFIs) that have contributed in no small measure to the growth and development of the Creative Industries.
Products Under Culture & Creative Industries
Engineering and Technology
The Engineering and Technology Group is one out of BOI’s Large Enterprise Directorate Groups, created to serve corporate customers in line with the Bank’s mandate of providing business support and financial assistance for the establishment of large projects as well as expansion, diversification, modernization, and rehabilitation of existing enterprises that engage in manufacturing and value-added services within the following sub-sectors:
- Engineering: Automobile Assembly and related components manufacturing, Automobile maintenance, Land and Aviation logistics services, Recycling and other closely related businesses.
- Information, Communication and Technology: Internet Service Providers, Telecommunication, Digital Printing and Advertisement, production of Smart chips and security access cards etc.
The Group remains committed to providing support to the entire value chain within its focus area by rendering financial and business support services to companies. In 2022, a more streamlined focus will be on projects in ICT, Haulage and Logistics and general manufacturing to create and sustain a minimum of 5000 direct jobs and 10,000 indirect jobs, facilitate the establishment of projects that can create an avenue for import substitution, increase the likelihood of exporting finished or semi-finished value products and drive awareness for strong support for innovative projects with a bias for technological solutions.
Products Under Engineering & Technology
The Group focuses on some of the emerging sectors dealing in technology, industrial storage and drying facilities amongst others in the industry. The food and beverage sub-sector of the Food processing industry made up for 4.6% share of the Nigerian manufacturing sector’s Gross Domestic Production (GDP) as of 2020. The sector alone is estimated to contribute 22.5% of the manufacturing industry value.
The Food Processing Group’s priority areas include projects, operations and activities in the following sub-sectors; cocoa processing, food and beverages, fish and seafood processing, rice milling, flour milling, agro-allied, seed milling, oil milling, animal feeds milling, meat processing, biscuits and confectionaries. The Group provides financial and business support for major players in a number of these sub-sectors.
Products Under Food Processing
Gender Business Group
The Gender Business Group’s area of focus is emerging sectors, particularly Women in Businesses irrespective of the sectors.
The sum of N10,500,000.00 billion has been earmarked as a disbursement to projects in 2022 to positively impact the sector through the creation of estimated four thousand (4,000) jobs.
Products Under Gender Business Group
Healthcare and Petrochemicals
The Healthcare and Petrochemicals Group provides support and services to companies that fall under the Healthcare, Personal Care and Petrochemicals sector. The Group plans to grow and diversify its portfolio in 2022 via outreach to emerging sub-sectors, as well as continued support and development of the healthcare industry.
The Intervention Funds Group is responsible for managing the Central Bank of Nigeria’s Intervention funds for Power & Airline (PAIF) and Restructuring & Refinancing Facility (RRF). The fund has helped improve access to credit to Manufacturers, Power generation companies & Airlines and to improve liquidity of Deposit Money Banks (DMB) and Development Finance Institutions (DFI).
Both funds have helped in increasing production output, generating employment, economic diversification and Increasing foreign exchange earnings.
Products Under Intervention Funds
Oil and Gas
Oil and Gas Group is one of the Bank’s Emerging Business Units, under the Large Enterprises Directorate. The operational plan of the group is built around the Nigerian Industrial Revolution Plan (NIRP) and priority given is to segments of the value chain under the group’s purview where Nigeria has comparative and competitive advantages. The group’s primary focus is the promotion of local content development in the oil and gas sector through the provision of financial and business support to indigenous players operating within the sector.
The Group intends to aggressively seek new risk assets to grow loan books, especially for modular refineries, LPG and CNG projects (Companies engaged in forward integration) with a clear focus on the BOI line of credit. The Group plans to increase its intervention in the Oil and Gas sector by disbursing N20.00 billion by the end of December 2022.
Products Under Oil & Gas
The Renewable Energy space in Nigeria has multiple energy sources such as Solar, Hydro, Wind, Biomass and waste to energy, with the most popular one presently being solar energy because of its declining cost and little or no maintenance cost once installed. The market for solar in recent years in Nigeria has gradually expanded and so far it’s the most reliable form of renewable energy after big hydro. Due to the nature and cost of technology, its use is currently widespread across the country both for residential, commercial and industrial purposes.
The Group provides financial and advisory support services to various commercial and industrial businesses switching their energy needs from fossil fuel to clean and sustainable energy solutions As a Development Bank interested in making a huge impact in the RE sector of the economy, BOI has set aside over N10.0 billion in active investment in the sector in the year 2022. The Renewable Energy Group is also exploring project funding in the Waste to Energy space, Wind, Magnetic Flywheel technology and other sectors as there currently exists a large potential for the technology in Nigeria.
Products Under Renewable Energy
Solid Minerals Group’s (SMG) area of focus is solid minerals and metals project financing. The Group’s sub-sectors include cement, ceramic tiles, granite aggregates, roofing sheets, electricity wires and cables, steel and iron products, roofing sheets, electricity meters production companies, etc.
The sum of N27.07 billion has been earmarked as disbursement to projects in 2022 to impact the sector positively through the creation of estimated four thousand (4,000) jobs.
Products Under Solid Minerals
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Large Enterprise Products
Catalysing Import Substitution on a Transformational Scale
Between 2015 and 2021, the Large Enterprises Directorate has disbursed loans to over 1,074 large enterprises across all sectors of the economy to the tune of N 927.1bn billion, creating an estimated 4,152,233 jobs and further enhancing support to a large number of SMEs that are part of the value chain either as suppliers of inputs or off-takers of our large enterprise output.
Through strategic partnerships with Agencies such as the Central Bank of Nigeria and the African Development Bank, BOI has supported over 110 projects with cumulative direct employment generation of over 12,000 and indirect employment of close to 120,000. As of December 31, 2021, BOI loan facilities to agro-processing large corporates stood at N116.9 billion inclusive of the Cotton, Textile & Garment (CTG) sector. Notable businesses financed by the bank through the agro-processing group include Vista International Limited, a part of the global conglomerate VISTA Group.
The Bank’s successes in financing the creative economy have earned it much recognition, especially given its low Non-performing loan (NPL) ratio. The Group has grown its risk assets to N80.6 billion as of December 31, 2021, covering 16 sectors of the Creative Economy. Notable businesses financed by the bank through the culture and creative group include: Genesis Deluxe Cinemas, Viva Cinemas, Marriot Hotels Ikeja, Radisson Blu, Ikeja, Alpha & Jam Limited, Corart Ventures Ltd and others have generated employment in thousands in addition to their direct and indirect impact.
In 2021, the Engineering and Technology Group disbursed the total sum of N9.83 billion to projects within its focus area with a breakdown of about N4 billion to ICT being a sector in the forefront following the adoption of the new normal and the post-COVID era, N2.89 billion to the Power Sector and about N2.95 billion to other areas like Construction and Cash in Transit. Notable businesses financed by the bank through the engineering and ICT group include Foreshore Waters Limited, Main One Cable Company, North South Power Company, and Viathan Engineering.
The Food Processing Group has disbursed N156 Billion to companies within the sector. In 2021, the group disbursed over N27.87 Billion to about ten (10) companies in various sub-sectors for the acquisition of plants and machinery for the expansion of their existing operations, diversification and establishment of new product lines. This intervention resulted in the creation of over 90,000 direct and indirect jobs along the entire value chain. Notable businesses financed through the group include Sundry Markets, Yale Foods, Karflex Fisheries, Sona Agro Allied Foods, and Niger Biscuit Company Presco PLC.
As of December 2021, the total sum of N5.26 billion was disbursed by the gender business group to four (4) projects during the period under review. The intervention is expected to assist beneficiaries to enhance their production capacities, and save foreign exchange through import substitution. This has led to the creation of an estimated 116 direct and indirect jobs. Notable businesses financed by the bank through the gender business group include Monitor Hi-Tech Company, Kes Products, Digital Jewels and Voltaire Lifestyle Services Ltd.
The Healthcare and Petrochemicals Group provides support and services to companies that fall under the Healthcare, Personal Care and Petrochemicals sector. In 2021, the Group achieved approvals to the tune of N44 billion and disbursed over N 24 billion to various projects, creating an estimated 5,500 jobs and multiple medical and industrial facilities in the process. Notable businesses financed by the bank through the healthcare and petrochemical group include Evercare Hospital Lekki, Bhojraj Industries, Reliance Chemical Products, Royal Foam, and Daraju Industries.
Power and Airline Intervention Fund (PAIF) has funded over 1,662.3 MW generation capacity with 1,214.3MW being new capacity. It has also re-financed part of the acquisition costs for 29 aircraft for 10 airline companies and provided working capital-related facilities of N16.4 billion for 8 airline companies. The Restructuring & Refinancing Facility (RRF) has helped in stabilizing the SME and Manufacturing sectors through reduced interest burden and extended tenor. Notable businesses financed by the bank through the intervention funds include Ashakem PLC, Paras Energy and Natural Resources and BU Power.
In August 2018, The Bank partnered with the Nigerian Content Development and Monitoring Board to manage a $200 million Nigerian Content Intervention Fund at an interest rate of 8% (currently 6% due to the palliative measures offered to key players in the oil and gas sector). Following the opening up of the economy in 2021 after the COVID pandemic, the group disbursed the total sum of N32.9 billion to about 19 companies creating over 2000 direct and indirect jobs. Notable businesses financed by the bank through the Oil and Gas group include Buildwell Plants and Equipment Industries and Eunisell Limited.
The Renewable Energy Group provides financial and advisory support services to various commercial and industrial businesses switching their energy needs from fossil fuel to clean and sustainable energy solutions to reduce their initial CAPEX. In 2021, BOI provided funding over N5.27 billion in loans to support the emerging renewable energy industry in Nigeria. This has led to an increase in production capacity for all beneficiaries. Notable businesses financed by the bank through the Renewable Energy Group include Abuja Steel Mills and Auxano Solar Nigeria.
Solid Minerals Group’s (SMG) area of focus is solid minerals and metals project financing. The Group’s sub-sectors include cement, ceramic tiles, granite aggregates, roofing sheets, electricity wires and cables, steel and iron products, etc. As of December 2021, the total sum of N14.28 billion was disbursed to six (6) projects during the period under review. The intervention is expected to assist beneficiaries to enhance production capacities, and save foreign exchange through import substitution. Notable businesses financed by the bank through the Solid Minerals Group include Coleman Technical Industries and Abuja Steel Mills.
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