THE Minister of Industry, Trade and Investment,
Aganga,while inaugurating the board of the bank in
"The practice in
"The current arrangement where less than 50 per cent of loanable fund is being set aside for micro small and medium enterprises is unacceptable. There must be a review upwards having regard to the potential of the sector to create jobs and generate wealth".
He said the objective of the country is not just to grow the economy but to have an inclusive and sustainable economy growth, which translates into taking care and prioritising the funding needs of the large majority of the people majority of whom in the micro, small and medium enterprises.
"You will recall that in 2001, the bank was reconstituted following a successful institutional operational and financial restructuring programme. That exercise transformed the BoI into an efficient, focused and profitable institution well placed to effectively carry out its primary mandate of providing long term finance to the industrial sector of the economy.
"Given this fact, therefore, the core mandate of the BoI is to provide financial assistance for large, not so large, medium and small projects and institutions as well as expansion diversification and modernization of the existing enterprises and rehabilitation of ailing industries. Its mandate has also anchor on creating an enabling environment to stimulate domestic investments and attract foreign direct investment into the industrial sectors of the economy,he said.
He added: "I would like to remind the Bank of industry that the future of the MSME as a sector rest squarely on how responsive you are to their funding needs. The sector according to the 2010 survey has about 17.25 million enterprises employing 32 million people and after the rebasing, this sector actually accounts for 45 percent of our GDP. So if we are ever going to have an inclusive economy growth, this sector has to receive preferential priority attention from the
He said other initiatives of the bank to help the sector like the bottom pyramid programme and cooperative lending are steps in the right direction to addressing the needs of the sector.
However, Aganga stressed that demand is placed on the bank to scale up its intervention programmes than it was in the past, so that more rewarding achievements can be recorded in the sector.
According to him, the bank and its board are expected as partners in the business sphere to share in the common national vision towards achieving the objectives for which the bank was established adding that this should be done with every sense of duty to ensure striking a balance between the bank's quest for higher dividend in the context of lending more to the people in order to create jobs and also not fail in its social obligation to the nation.
In order to track the performance of the bank, Aganga said a quarterly progress report is expected from the board to his office, showing the performance in the quarter with detailed analysis of the bank's loan book by sectors and its impact on the industrial revolution plan, the impact on the national enterprise development plan on the jobs that are created, the loans given by gender and general contribution to national development.
Aganga said the role of the bank has become more important than before with the clear direction by the country for the desire to add value to its commodity and industrialise as a nation knowing that no nation has ever moved from being poor to a rich nation by relying on exporting raw material.
"The bank is to play a major role in the transformation of the industrial sector and integrate it into the global economy by providing financial and business support services to existing and new industries especially that which would enable them attain modern capability to produce goods that are competitive in both domestic and external markets," he said.
He charged the board to formulate good policies, set targets, monitor projects and programmes that would drive the operations of the bank and encourage growth in the priority sectors of the economy, adding that the onus lies on the Managing Director of the bank, Rasheed Olaoluwa to ensure that the bank achieve the set objectives having gathered experience in the banking sector.
Olaoluwa said credit would be made available to interested Nigerians by examining both sectoral and regional distribution of enterprises, so that beneficiaries of the funds would not be concentrated in the big cities alone.
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