[Nigeria] Bank of Industry Restates Financing Support for Local Manufacturers

As Nigeria continues to struggle with the plunge in oil and commodity prices, drop in China's purchases and decline in GDP growth rates across the continent, the Bank of Industry (BoI) has stated that its intervention would be geared towards supporting investments in the nation's real sector rather than importation.

According to the bank, there is a need for Nigeria to stop its heavy dependence on imports when there is capacity to develop local industrial firms.

The Managing Director, BoI, Rasheed Olaoluwa, during an assessment tour of IO Furniture, Ruff n Tumble and Animal Care Service Konsult Nigeria Limited, beneficiaries of the Development Finance Institution (DFI's) intervention fund, added that Nigeria must support indigenous investment to meet its food needs.

"At BoI, we are very passionate about Nigerian businesses. We must continue to produce what we consume and consume what we produce," he said.

‎He stated that the bank is focused on changing its SME financing initiatives, while also pointing out the need to develop an SME cluster to aid ease of access to bankable loans for SMEs.

"As part of our usual means of ensuring we stay close to our customers, we ‎make sure that the loans disbursed are effectively utilised. We have visited three companies and I must say we are delighted and pleased with the level of their output," he said.

He however stated the bank's readiness to support genuine businesses that would create job opportunities for the nation's teeming unemployed youth.

He commended Animal Care Service for carrying out its activities by taking cognisance of international best practices, saying that courtesy of the bank's intervention, the company has expanded its operations in the country.

"We are very impressed with the level of quality assurance, safety, standards and the priority given to safety of human and birds. We also want to commend you for the backward integration in animal feed production and with your three feed milling plants waiting to be commissioned, we believe is the beginning of something good for Nigeria.

"I have no doubt that companies like this at some point in the future will make Nigeria self-sufficient in food production. We have no reason for importing food because we have all it takes," he added.

The founder and Chief Executive Officer, Animal Care Service Konsult Nigeria Limited, Dr. Olatunde Agbato thanked the DFI for its support, saying that with the intervention, his company has grown in leaps and bounds.

"We have expanded ‎our facilities to Asaba and Kano with a feed milling capacity of 20 tonnes per hour each. We also believe that the quality of eggs is going to increase because of the expansion," he stressed.

According to him, before the expansion, its staff strength was about 1325, but stated that courtesy of the expansion, it staff strength has moved up to over 1468 representing a 15 per cent increase.

"We are encouraged by the kind of support from BOI. Our credibility is our greatest asset. We are responsible in terms of loan utilization and repayment. We will continue to do what we know how to do best and shall surely meet our entire obligation to BOI," he said.

In her response, the Managing Director, Ruff n Tumble, Mrs. Adenike Ogunlesi, said businesses in the country are challenged with lack of retail outlets to push their goods and services, saying that a lot of attention has to be paid in retailing to help Nigerian brands succeed locally and internationally.

She also called for the need for the federal government to remove bottlenecks inhibiting investments in the country, noting that it is everybody's business to create jobs in the country.

We need support to that end to be able to stand side by side with international brands," she said.

The founder, IOFurniture, Mrs. Munira Shonibare also lauded BOI for its support geared at driving local investments in manufacturing, SME development and agriculture, saying that the bank not only provide financial services but also providing access to market of made-in-Nigeria goods.

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