Date: 2016-12-24

Industrialists and manufacturers in Kwara State have kicked against the proposed scrap of Bank of Industry (BoI) by the Federal Government. The National Assembly had proposed a bill to replace the financial institution with Development Bank of Nigeria.

nnnnnn Speaking to this medium in Ilorin, business owners stressed that BoI should rather be strengthened so as to add value to Small and Medium Scale Enterprises (SMEs) with a view to creating jobs.

The former President of Kwara Chambers of Commerce, Industry, Mines and Agriculture (KWACCIMA), Chief Hezekiah Adediji said "we are asking that BoI should be provided with more capital to support real sectors of the economy instead of duplicating functions by creating new financial institution.

"Bearing in mind the failure of similar financial institutions like the People's Bank, Community Bank, Development Bank among others. We are yet to see cogent reasons for its scrap because it has been supporting the industrial sectors for over 30 years," he explained.

Adediji called on lawmakers to formulate policies that will encourage Nigerians to come out with projects and embrace the bank for soft loans rather than contemplating on its scrap.

The Director of Sure Doors Investment, Chief Adebowale Olugbenga said, "All the government needs to do is to widen the scope of BoI to cover the mining and oil sectors.

He added, "One cannot really see clear difference between BoI or DBN, it is just name. The BoI have been supporting SMEs. Therefore there is no need scrapping it to re-establish in the interest of our economy."

Also speaking, the state chairman of National Association of Small Scale Industrialists (NASSI), Mr. Solomon Olawoyin said, "The Bank of Industry is an institution which mandate revolves around the provision of loans to small, medium and large enterprises as well as large business financing.

He stressed that "its track record of achievements since the winding up of the Nigerian Industrial Development Bank is there for everyone to see.

""It is on record that the BoI, has effectively intervened in sectors of the Nigerian economy where market based financial institutions would not and has proved to be an effective development finance institution that caters to the needs of SMEs.

"The present attempt by the National Assembly to scrap the BoI and replace it with the National Development Bank of Nigeria (Establishment, etc) Bill, 2015, that is currently awaiting the report of the Committee on Banking, Insurance and Financial Institutions, and has gone through the First and Second readings, creates a curious phenomenon.

"This is because the Bank of Industry Limited (BoI) has proved to be Nigeria's most successful development financing institution since its establishment, providing support to Nigeria's industrial sector," he submitted.