The Commercial and Development Banks are contributing a lot towards the promotion of small and medium enterprises especially in the various functions they carry out in their day to day operations. The potential entrepreneurs are therefore to benefit from the functions and assistance rendered by these financial institutions.
Financial Institutions Involved In Entrepreneurship Development The Nigerian Industrial Development Bank (NIDB), the National Economic Reconstruction Fund (NERFUND) and the Nigerian Bank for Commerce and Industry (NBIC) have been brought together to form the Bank of Industry (BOI). On the other hand, the Family Economic Advancement Programme (FEAP), Peoples Bank of Nigeria (PBN) and the Nigerian Agricultural and Cooperative Bank (NACB) have become a single Bank, the Nigerian Agricultural, Cooperative and Rural Development Bank (NACRDB).
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Bank of Industry (BOI) The Bank of Industry (BOI) is owned by the Federal Government of Nigeria. This bank emerged from the government’s rationalization of some development Finance Institutions (DFIs) namely the Nigerian Bank for Commerce (NBCI), Nigerian Industrial Development Bank (NIDB) and the Nigerian Economic Reconstruction Fund (NERFUND). The Bank of Industry has four subsidiaries from its merger:
- Leasing Company of Nigeria (LECON)
- NIDB Trustees Limited (NTL)
- NIDB Consultancy and Finance Limited (NIDB Consult)
- Industrial and Development Insurance Brokers (IDIB)
Types of Projects Financed by BOI
- Projects in the areas where Nigeria has comparative advantage
- Projects that engage in the efficient conversion of local raw materials into finished products
- Ventures that can be least cost producers of good quality products that could be successfully marketed locally and/or internationally.
Products and Services Deliverable by BOI
- Medium and Long-term loans.
- Working Capital Finance
- Equity Financing
- Management of dedicated funds
- Loan guarantees
- Investments in Corporate Boards
- Business Development Services
- Lease financing
- Stock Brokerage
- Foreign Exchange Dealership
- Insurance Brokerage
The huge SMIEIS funds currently accumulated by the Banks will help BOI fulfill its mandate. It is expected that the bank’s contribution to the economy will grow stronger as the implementation of the economic reforms progresses to widen the scope of needs for economic/business development financing.