Bank of Industry Nigeria

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  • Topic: Executive director, Industry, Millennium Development Goals
  • Pages : 9 (2612 words )
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  • Published : May 23, 2013
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BANK OF INDUSTRY
INTRODUCTION.
The Bank of Industry was created by the Federal Executive Council in January 2002 with the sole purpose of promoting and encouraging small and medium scale industries in Nigeria by providing long term financing to the industrial sector of the Nigerian economy. It was formed by the amalgamation of three already existing development financial institutions comprising: The Nigerian Bank of Commerce and Industry (NBCI), The Nigerian Industrial Development Bank (NIDB) and The National Economic Reconstruction Fund (NERFUND) (Ojo, 2011). This makes it Nigeria’s oldest, largest and most successful development financing institution (BOI, 2012). This paper seeks to explore and identify the organization of the bank; its functions and roles as well as its performance so far. ORGANIZATION:

In 1964, the Nigerian Industrial Development Bank (NIDB) Limited was incorporated, with an authorized share capital of 2 million (GBP). The International Finance Corporation then produced its pioneer Chief Executive; and held 75% of its equity along with a number of domestic and foreign private investors. In 2001 the bank was reconstructed and this gave rise to the establishment of the Bank of Industry Limited (BOI). Authorized share capital of the bank was initially set at N50 billion during the reconstruction into BOI; this was later 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. The current share holding structure is as follows: Share Holding Structure

Ministry of Finance Incorporated (MOFI)| 58.86%|
Central Bank of Nigeria (CBN)| 41.12%|
Equity held by 43 private shareholders| 0.02%|
| 100% |
Source BOI (2012)
Supervisory authorities over BOI include the Central Bank of Nigeria (CBN) and the Federal Ministry of Commerce and Industry. The bank currently has a Board of directors made up of – a Protem Chairman, a Managing Director & Chief Executive Officer, three Executive Directors- Executive Director (Corporate Services), Executive Director (Operations), Executive Director (Business Development), and two other Directors. Below is a chart representing the Bank’s Corporate governance system as provided by BOI (2012). Board of Directors based mainly on institutional representation | Executive Directorate | |

Managing Director & Chief Executive Officer| 1|
Executive Directors| 2|
Sub Total| 3|
|
|
Non –Executive Directors | |
Ministry of Finance Incorporated| 1|
Central Bank of Nigeria| 1|
Federal Ministry of Commerce and industry| 1|
Manufacturers Association of Nigeria| 1|
Non – institutional representatives| 2|
Sub Total| 6|
|
|
Executive Management Committee| |
Managing Director & Chief Executive Officer| 1|
Executive Director (Corporate Services)| 1|
Executive Director (Operations)| 1|
General Manager (Operations)| 1|
General Manager (Management Services)| 1|
General Manager (SME)| 1|
General Manager (Strategic Planning/Corporate Communications & Corporate Secretariat) | 1| Sub Total| 7|
|

Offices: The bank has its head office at Marina, Lagos, with six zonal offices in the six geo-political zones of Nigeria- Abuja, Aba, Akure, Maiduguri, Kaduna, and Asaba. Subsidiaries: There are four subsidiary organizations of the BOI, these according to BOI (2012) include: * Leasing Company of Nigeria Limited.

* Bank of Industry - Investment and Trust Company.
* Industrial Development Insurance Brokers Limited.
* BOI Micro Finance.
Leasing Company of Nigeria Limited (LECON)
Leasing Company of Nigeria Limited, formerly Commonwealth Development Corporation (Nigeria) Ltd. was established in 1970 and later incorporated as a limited liability Company in 1986. The company is a subsidiary of Bank of Industry Limited whose objective is to contribute to the nation’s economic...
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