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2021 Press Releases

Procter & Gamble, FMITI, and BOI announces the launch of the 2021 P&G – BoI SME Academy

October 13, 2022 No Comments

… Vice President Osinbajo, Minister Adebayo and other industry leaders to open this year’s virtual SME academy to train hundreds of local SMEs

Lagos, Nigeria. January 2021: In a bid to enhance the capabilities of small and medium enterprises (SMEs) in Nigeria, leading consumer goods company, P&G, has partnered with the Federal Ministry of Industry, Trade and Investment, and the Bank of Industry (BoI) to launch the 2021 P&G – BoI SME Academy. 

This year’s SME Academy – which aims to upskill hundreds of SMEs in Nigeria – will feature a webinar on Friday, February 12, and an eight-module business training on February 12 and 19, 2021.

The Vice President of the Federal Republic of Nigeria, His Excellency, Professor Yemi Osinbajo, GCON, will deliver the keynote address at the program. The SME Academy webinar will also feature senior government and private sector officials including Otunba Adeniyi Adebayo – Honorable Minister of Industry, Trade, & Investment, Mr. Omar Channawi – P&G Senior Vice President for Asia, Middle East & Africa, Mr. Olukayode Pitan – MD/CEO of the Bank of Industry, Mrs. Bola Adesola – Senior Vice Chairman for Africa at Standard Chartered Bank, Ms. Yewande Sadiku, the CEO of the Nigerian Investment Promotion Commission (NIPC), Mr. Muhammad M. Nami, the Chairman of the Federal Inland Revenue Service (FIRS), and Mrs. Tara Fela-Durotoye, the CEO of House of Tara amongst others. 

As a force for growth and a force for good for over 28 years in Nigeria, Procter & Gamble has invested significantly in SME development, job creation and trusted, quality leadership brands for Nigerians. Similarly, the Bank of Industry has supported the growth and expansion of thousands of SMEs in Nigeria. Through the SME Academy, both organizations will jointly train hundreds of local SMEs annually on basic business skills to improve their standards, ensure longevity and facilitate their integration into global value chains.

Speaking on the partnership, P&G Managing Director for Nigeria, Mr. Adil Farhat said, “P&G is delighted to collaborate with the Federal Ministry of Industry, Trade & Investment and the Bank of Industry to develop the capacity of SMEs and aid their integration into the global value chain. We are honored to support the government’s plan to create more jobs through SMEs and ensure that small scale businesses have the right skillset to grow, sustain their operations and contribute to the growth of Nigeria’s economy.”

Also commenting on the academy, the Minister for Industry, Trade and Investment, Otunba Adeniyi Adebayo said, “In line with the National Economic Sustainability Plan (NESP) of the government, it is important that skill acquisition forms the basis of SMEs operation as they contribute immensely to the economy of the country. As a result, we will support their growth by upskilling and creating an enabling environment which allows them to thrive. The partnership with P&G is timely and we are glad that this public private partnership will support the government’s plan to train SMEs and create more jobs.”

Remarking on the initiative, Mr. Olukayode Pitan, the MD/CEO of the Bank of Industry said, “BoI is committed to impacting SMEs in Nigeria and we believe that this collaboration will drive growth in the nation’s economy. The SME Academy is focused on finding a sustainable solution to unlocking the efficient performance of these enterprises through advisory and skill development.”

As part of the two-day SME Academy and webinar, Procter & Gamble and the Bank of Industry will facilitate the delivery of structured virtual business classes for SME representatives. Some of the classes include tax compliance, access to international markets, procurement principles, business ethics, and corporate governance.

To Register, Visit http://bit.ly/2021PGBoISMEAcademy

 

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About Procter & Gamble

P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit http://www.pg.com for the latest news and information about P&G and its brands.

About the Bank of Industry

The Bank of Industry Limited (BOI) is Nigeria’s oldest, largest and most successful development financing institution. It was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank took off in 1964 with an authorized share capital of 2 million (GBP).

The International Finance Corporation which produced its pioneer Chief Executive held 75% of its equity along with a number of domestic and foreign private investors. Although the bank’s authorized share capital was initially set at N50 billion in the wake of NIDB’s reconstruction into BOI in 2001, it has been increased to 250 billion in order to put the bank in a better position to address the nation’s rising economic profile in line with its mandate.

Following a successful institutional, operational and financial restructuring programme embarked upon in 2002, the bank has transformed into an efficient, focused and profitable institution that is well placed to effectively carry out its primary mandate of providing long term financing to the industrial sector of the Nigerian economy.

BOI Raises E1Billion In The International Market
2020 Press Releases

BOI Raises €1Billion In The International Market

October 11, 2022 No Comments

In line with the focus of President Muhammadu Buhari’s administration to revitalize Nigeria’s industrial sector and create 10 million jobs by leveraging the Nigeria Industrial Revolution Plan and the Economic Recovery and Growth Plan, the Bank of Industry (BOI) recently concluded raising the sum of €1 billion (approximately $1.11billion) from the international capital market. The transaction is aimed at improving the capacity of the bank to continue to effectively support Micro, Small, Medium and Large enterprises (across key sectors) of the Nigerian economy with affordable loans of medium to long-term tenor, alongside moratorium benefits.

African Export-Import Bank, Credit Suisse, Rand Merchant Bank and Sumitomo Mitsui Banking Corporation were the Joint Mandated Lead Arrangers, Underwriters and Book runners of the Syndicated Medium-term Facility. The investors include the Lead Arrangers, alongside 20 other international financial institutions.

As part of the roadshow, the management team of the Bank of Industry presented its information memorandum to an audience of about 60 potential investors in London in December 2019. The investors were particularly impressed with the business model and corporate governance structures of the bank.

The transaction was subsequently launched on 15th January 2020 with an initial size of €750 million. Upon closing on 19th February 2020, the deal was oversubscribed by 60%. The deal size was thereafter upsized to a sum of €1 billion. 

The transaction is a further confirmation of the acceptance of the Bank of Industry in the international financial market, following its first successful fund raising transaction in 2017, which raised $750 million from a syndicate of 16 international banks. Key factors that led to the success of this deal include amongst others, the impressive credit ratings of the bank (Long Term Issuer Default Ratings of B+, B2 and Aa from Fitch, Moody’s and Agusto respectively), its ISO certifications in both Quality Management Systems and Information Security, as well as the strong strategic partnership that the bank has developed with the Nigerian commercial banks, who provide credit enhancements and de-risking tools to BOI customers.

Of particular and special note is the support of the Governor of the Central Bank of Nigeria and his Committee of Governors, which was crucial to the success of this transaction. The Apex Bank supported BOI throughout the entire process with technical advice and all approvals as required that saw this transaction through from inception to its conclusion. The Central Bank also provided BOI with 100% currency swap to mitigate the foreign exchange rate risk. The facility will be disbursed in Naira at single digit interest rates to borrowers with bankable projects.

In 2019, the Bank of Industry with the support of its various stakeholders disbursed a total of ₦234 billion to 10,145 enterprises, thus creating over 1 million estimated direct and indirect jobs. 

With the successful conclusion of this €1 billion medium term syndicated facility, BOI (which is owned by the Central Bank of Nigeria and the Federal Ministry of Finance Incorporated) is poised to catalyze domestic production and job creation on a transformational scale, enhance local industry competitiveness, attract domestic and foreign investments, integrate our local industries into domestic, regional and global value chains, grow our export earnings and positively impact the overall economic development of Nigeria in line with its mandate.

BOI Launches Tech Hub In Bayelsa To Promote Youth Entrepreneurship
2019 Press Releases

BOI Launches Tech Hub In Bayelsa To Promote Youth Entrepreneurship

October 11, 2022 No Comments

The Bank of Industry (BOI) today announces the official commissioning of the Bayelsa Tech Hub and BOI-UAT Incubation Center respectively by the Executive Governor of Bayelsa State, His Excellency, Hon. Seriake Dickson. These projects are corporate social responsibility (CSR) initiatives sponsored by the Bayelsa State Government and BOI to promote skills development, youth entrepreneurship and job creation in new technology and innovations.

As the foremost development finance institution in Nigeria, the Bank of Industry has the mission to transform Nigeria’s industrial sector by providing financial and business support services to enable new businesses emerge and existing enterprises to thrive. 

Today’s commissioning of the Tech Hub and BOI-UAT incubation centre is the manifestation of a deliberate programme that the Bank of Industry is implementing towards building a dynamic and vibrant startup ecosystem in Nigeria, and is driven by the realization that tech startups are becoming major economic value creators in the 21st century and this trend will accelerate especially as artificial intelligence, robotics, big data, etc., become embedded in our daily lives. It is also motivated by the desire to support quality projects with high developmental impact such as job creation and poverty alleviation to enhance the socio-economic standard of especially, young Nigerians.

The Managing Director/CEO, Bank of Industry, Mr. Kayode Pitan said the Bank was sponsoring the hub in recognition of the ingenuity and creativity of young people in Nigeria, and the need to channel these to more productive and impactful ends, rather than social vices like Internet fraud. According to him, “the overall objective is to ensure that our corporate social responsibility investments are such as will generate better benefits for the country; and initiatives like this gives young people an opportunity to add their own quota to the economic development of Lagos State, and Nigeria as a whole”.

“We believe that at a centre like this, talent can be discovered and harnessed, and also it will help to grow the tech ecosystem in the country, get more young people involved in it, make it more attractive to investments, etc. and this will augur well for Nigeria, in general”.

To ensure the initiative is sustainable, BOI has partnered with Vatebra, a technology firm to manage the day-to-day operations at the Hub, which has facilities including high-speed internet access, shared and private offices spaces, well equipped robotics training lab, among others. Vatebra is a leading software solutions company in Africa with offices in Nigeria (Lagos & Abuja), Ghana, Kenya, Uganda and Sierra-Leone. Vatebra Limited is a 3-time winner of the “Technology Company of the Year” Award by the Nigerian Technology Awards.

The Bayelsa state government and Bank of Industry will roll out series of programmes to build and strengthen the capacities of entrepreneurs to ideate, incubate and launch successful businesses. These programmes will be complemented with funding opportunities through schemes from BOI and other financing institutions.

The belief is that the Hubs will be a platform to productively engage youths in Bayelsa and beyond, and also create an ecosystem that will in the near future add to Nigeria’s economic growth. 

For more information, please contact Bank of Industry Corporate Communications on ccd@boi.ng

BOI Launches Tech Hub In Lagos To Promote Youth Entrepreneurship
2019 Press Releases

BOI Launches Tech Hub In Lagos To Promote Youth Entrepreneurship

October 8, 2022 No Comments

The Bank of Industry (BOI) today announces the official commissioning of the Tech Hub Ajah Lagos, by the Executive Governor of Lagos, His Excellency, Mr Babajide Sanwo-Olu. The Tech Hub is a corporate social responsibility (CSR) initiative sponsored by BOI to promote skills development, youth entrepreneurship and job creation in new technology and innovations.

As the foremost development finance institution in Nigeria, the Bank of Industry has the mission to transform Nigeria’s industrial sector by providing financial and business support services to enable new businesses emerge and existing enterprises to thrive. 

Today’s commissioning of the Tech Hub is the manifestation of a deliberate programme that the Bank of Industry is implementing towards building a dynamic and vibrant startup ecosystem in Nigeria, and is driven by the realization that tech startups are becoming major economic value creators in the 21st century and this trend will accelerate especially as artificial intelligence, robotics, big data, etc., become embedded in our daily lives. It is also motivated by the desire to support quality projects with high developmental impact such as job creation and poverty alleviation to enhance the socio-economic standard of especially, young Nigerians.

The Managing Director/CEO, Bank of Industry, Mr. Kayode Pitan said the Bank was sponsoring the hub in recognition of the ingenuity and creativity of young people in Nigeria, and the need to channel these to more productive and impactful ends, rather than social vices like Internet fraud. According to him, “the overall objective is to ensure that our corporate social responsibility investments are such as will generate better benefits for the country; and a hub like this gives young people an opportunity to add their own quota to the economic development of Lagos State, and Nigeria as a whole”.

“We believe that at a centre like this, talent can be discovered and harnessed, and also it will help to grow the tech ecosystem in the country, get more young people involved in it, make it more attractive to investments, etc. and this will augur well for Nigeria, in general”.

To ensure the initiative is sustainable, BOI has partnered with Vatebra, a technology firm to manage the day-to-day operations at the Hub, which has facilities including high-speed internet access, shared and private offices spaces, well equipped robotics training lab, among others. Vatebra is a leading software solutions company in Africa with offices in Nigeria (Lagos & Abuja), Ghana, Kenya, Uganda and Sierra-Leone. Vatebra Limited is a 3-time winner of the “Technology Company of the Year” Award by the Nigerian Technology Awards.

Working with its partner organizations, the Bank of Industry will roll out series of programmes to build and strengthen the capacities of entrepreneurs to ideate, incubate and launch successful businesses. These programmes will be complemented with funding opportunities through schemes from BOI schemes and other financing institutions.

The belief is that the Hub will be a platform to productively engage youths around Ajah, Sangotedo, and beyond, and also create an ecosystem that will in the near future add to Nigeria’s economic growth. 

For more information, please contact Bank of Industry Corporate Communications on ccd@boi.ng

design thinking
Blog Posts Business

Design Thinking In Solving Organizational Problems

October 4, 2022 No Comments

“Recognizing the need is the primary condition for design” – Charles Eames 

Design thinking (DT) originally came about as a way to teach engineers how to approach problems creatively, as designers do. Since then, it has been used effectively within a variety of industries, customising the process to their environment, challenges, and goals. Market leaders like IBM, Google, and Tesla also use design thinking as an innovative methodology to guide their product development. It helps them see the world through the eyes of their customers. 

Addressing the needs of consumers is a powerful way to drive innovative thinking. In today’s rapidly changing world, it is becoming increasingly difficult to proffer a one-size-fits-all approach to customer expectations. This is due to advancements in technology, changing tastes and lifestyles, increasing purchasing power and so on. Organisations today have to address more complex problems. To address these problems, there is a need to better understand the consumers and what they expect to gain. 

Design thinking puts the consumer at the centre of problem-solving. To be able to proffer solutions to a problem, it is important that organisations understand the impact on the consumer. Design thinking encourages organisations and businesses to focus on the human point of view above all else, and to build this focus into each step of the product development cycle. This means designing products and services with people’s needs and preferences firmly in mind. For instance, a software company will prioritise design functionality, dependability and security which will allow consumers to transact in a clear, simple and intuitive way. 

Steps in Design Thinking

  • Empathize: Empathy helps to understand the problem of the consumer by setting aside assumptions. It is when you understand how a problem impacts a consumer that you can empathise. We can practice empathy through observation and interviewing. 
  • Define: The outcome of this step is a problem statement. It involves asking what problem we are trying to solve. It helps identify the features that are a priority in the solution. 
  • Ideate: This requires an exhaustive exploration and evaluation of possible solutions (i.e. brainstorming), in a bid to address the pain points of customers.
  • Prototype: It involves developing a quick representation of the solution i.e. a physical object, a drawing, or an experience map. It selects a handful of innovative proposals and turns them into prototypes. 
  • Test: Here, we test the prototype by gathering feedback to determine its effectiveness. It is an iterative process with opportunities for improvement.

Benefits of Design Thinking

  • Cost-effectiveness: DT enables the testing of ideas without committing resources i.e. companies are able to evaluate the effectiveness of a new product or service, without having to go through the entire process of developing the product. 
  • Non-linear problem solving: DT allows companies the flexibility to jump from step to step as needed. For example, if the prototyping step does not work, a company can re-start the ideation process.
  • Managing complexity: Complex problems can be solved by focusing on user needs and the limitations of existing products and services
  • Market discovery: DT opens up the opportunity for companies to discover entirely new markets. For example, the iPhone started with the question of how to avoid customers juggling multiple devices. By working on how to make things easier for people, Apple invented the smartphone, which opened up a whole new global market.
  • Tailored solutions: User experience (UX) is emphasised when capturing customers’ mindset during the design process. 

Leveraging Design Thinking in BOI

Despite monumental successes that the bank has achieved over the years, BOI is not immune to challenges and as such, adopting a design thinking framework could help in efficiently executing some of its strategic objectives. For instance, improving access to BOI loans by the youth segment can be further enhanced by leveraging the DT approach by dialoguing with the segment to understand their limitations. Brainstorm on potential solutions and jointly analyse possible solutions and thereafter test/pilot such solutions for effectiveness. 

Pitfalls to avoid in Design Thinking 

Design thinking often leads to comprehensive solutions. However, the framework may not work for all objectives. As such, it is important not to lose sight of other pragmatic approaches to executing corporate objectives. In addition, clear and simplified communication is key in the iterative development stage of problem definition. 

We conclude with a quote by Laura Ashley – “We don’t want to push our ideas onto customers, we simply want to make what they want.“

industrialisation
Blog Posts Business

Economic Development and Industrialisation in Nigeria: The Role of the Bank of Industry

October 4, 2022 No Comments

“Economic growth without investment in human development is unsustainable and unethical” – Amartya Sen

In the wake of the recent economic recession, the first since 1991, Nigeria released a new development plan – Economic Recovery and Growth Plan (ERGP) – that set out specific objectives for achieving economic growth of 7% by 2020. This release followed earlier plans such as Nigeria Industrial Revolution Plan (NIRP), National Economic Empowerment and Development Strategy (NEEDS), the 7- point agenda, and others that targeted both economic growth and development within a specified period.  The implementation of these plans has allowed Nigeria to record some measure of growth. However, the recent recession and its contributing factors (global oil price reduction, unavailability of Foreign Exchange etc.) have shown that Nigeria needs to develop sustainable sources of foreign exchange earnings to fund economic development, besides oil.

To ensure more sustainable growth, Nigeria has to prioritise economic development that produces long-term growth. Focusing on this will require a clear definition of what economic development means for Nigeria, how it can be attained, and the identification of key actors and roles in its attainment. 

Although GDP growth is essential for development, other metrics such as improved competitiveness and standards of living are also important to ensure economic development. The terms economic growth and economic development are often used interchangeably but they have quite distinct meanings; Economic growth is an increase in aggregate national output. This is usually of short-term benefit. Economic development involves the fundamental transformation of an economy, leading to long-term economic benefits. It is about positioning the economy on a higher growth trajectory while focusing on improving intrinsic development factors such as unemployment, literacy, life expectancy and poverty rates. This can be achieved by causing institutional changes, altering industrial structures, the educational and occupational characteristics of the population, and the entire social and cultural fabric of a nation. It is the product of long-term investment in generating new ideas, knowledge transfer, and infrastructure. Economic development requires quality improvements and innovation. As a result, a requirement for realising development is the presence of the innovative entrepreneur. These entrepreneurs usually focus on introducing goods with a higher value and can comfortably compete within and outside their country. 

Nigeria possesses an abundance of natural resources and comparative advantages that present a good starting point for the pursuit of sustainable economic development.

In addition to a favourable climate, Nigeria has vast amounts of natural resources and a large population. It has the 6th largest gas reserves and the 8th largest crude oil reserves in the world. It is also endowed in commercial quantities with about 44 solid mineral types and has a population of close to 200milliom. The existence of these advantages presents vast opportunities with which Nigeria can push for a trend of continuous economic development.

However, to fully utilise these advantages, we must encourage the notion of competition at both the micro and macro levels. This will see industries attach a premium to improving productivity. It will also see the Nigerian industries transition from a focus on the production of primary goods to the production of secondary goods with a higher value. Such transition is possible only through the mechanisation of the production process. This is argued to be a hallmark of industrialisation. As a result, a focus on the attainment of economic development in Nigeria is indicative of a focus on driving the process of industrialisation within the country. 

Where does the Bank of Industry come in? 

The Bank of Industry (“BOI”) is one of the public institutions tasked with the mandate of promoting industrialisation in Nigeria. The bank does this by providing both business and financial support to small, medium, and large-scale Nigerian enterprises. Such support provides enterprises with the financing needed to acquire equipment (machines) to improve the efficiency of the production process. We also provide them with business advisory services to ensure that they have the necessary capabilities and know-how needed to operate sustainably. BOI’s role in enabling industrialisation, and economic development, cannot be understated. The application of machinery enables enterprises to produce goods that are not only value-adding but can also compete locally and internationally.  

The ERGP and NIRP have placed industrialisation, entrepreneurship, and competition as being central to achieving their objectives. Due to its role as a financer of enterprises BOI is being depicted as probably the most important tool the government has to promote economic development in Nigeria. BOI will continue to strengthen collaborations for greater developmental impact and increase support for enterprises, leading to improved competition, innovation and economic development in Nigeria.

Economic Development through the Nigerian Informal Sector
Blog Posts Business

Economic Development through the Nigerian Informal Sector: A BOI perspective

October 4, 2022 No Comments

“Informal conversation is probably the oldest mechanism by which opinions on products are developed, expressed and spread” – Johann Arndt

2017 saw Nigeria record its first full year of growth after experiencing its first recession in 25 years. While this recovery brought an increase in business confidence, concerns remain as GDP growth was less than national population growth. These concerns persist even as the IMF projected 2.1% growth for 2018, which falls below the population growth forecast of 2.6%. Population growth, coupled with high underemployment and unemployment rates (a combined 40%), will result in an increase in the number of job seekers in 2018. It also translates to an increase in the number of people who look to the informal sector for economic survival. The Nigerian Informal Sector (IS) is a major contributor to the Nigerian economy, accounting for a significant portion of employment and national GDP. According to the IMF, the Nigerian informal sector accounted for ~65% of Nigeria’s 2017 GDP. 

So what is the informal sector?

The Informal Sector comprises any economic activity or source of income that is not fully regulated by the government and other public authorities. This includes enterprises that are not officially registered and do not maintain a complete set of accounts, and workers who hold jobs lacking basic social or legal protection and employment benefits. Examples of informal employment workers include street traders, subsistence farmers, small-scale manufacturers, service providers (e.g. hairdressers, private taxi drivers, and carpenters), etc. 

The sector currently accounts for over half of global employment and as much as 90% of employment in some of the poorer developing countries. Due to its flexible nature, the informal sector can easily adapt to difficulties such as the current global recession, providing some measure of support to those most in need. Despite its importance, the informal sector is often overlooked and misunderstood, with some viewing it as transient, and expected to be eventually absorbed into the formal economy. 

Today, there is no unanimous perspective on the informal economy. Some believe that the informal sector encourages fraudulent activities that result in the loss of revenue from taxes, weak unions, unfair competition, a loss of regulatory control, and disregard for health and safety standards, among others. However, a fast-growing view is that the informal economy offers significant job creation, income generation potential, and the capacity to meet the needs of poor consumers by providing cheaper and more accessible goods and services. With the significant contribution of the informal sector to the Nigerian economy, an undeniable truth is that any notion of economic development in the country is one that hugely depends on the state of affairs in the informal sector. Sustainable and inclusive economic development and job creation are unlikely to be achieved unless the potential and needs of the informal sector are adequately considered. Thus, efforts must be made to understand the dynamics of the sector and how best to tap the latent potential that lies within. 

If previous attempts at intervention were unsuccessful, what can be done to maximise the potential of the informal sector in Nigeria? 

Historically, stakeholder interventions in the informal sector have been focused on how to regulate businesses, and effectively integrate them into the formal economy. Limited emphasis has been given to identifying the drivers of growth in the various sub-sectors within, and the challenges experienced by participants. The Nigerian Informal sector players face a myriad of challenges including inadequacy of technology, education, markets, land and physical infrastructure, limited access to finance, and limited skills development. Policy interventions to support the sector must therefore be two-fold. Firstly, efforts should be made to create more formal jobs to draw workers out of the informal sector. Secondly, policies should be introduced to address identified challenges in the informal sector towards improving productivity and incomes of informal sector players

What role does the Bank of Industry play in supporting the Informal Sector for national development? 

Current BOI interventions in the informal sector include both training and financial support for market women, artisans, traders (through the FG’s “Government Economic Empowerment Programme “GEEP product”) and artisanal miners (through the Artisanal and Small-Scale Miners – “ASM Fund”). A critical look at these interventions shows BOI adopting a hybrid model that prioritises the attainment of both economic growth (GEEP) and development (ASM Fund). In the formal sector, BOI continues to provide funding and capacity building to enterprises, for business expansion,  inevitably leading to job creation.

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