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BoI Disbursed N66bn to SMEs in 2016

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  • BoI Disbursed N66bn to SMEs in 2016

The Bank of Industry (BoI) recorded its most impressive performance in 2016 by posting double-digit growths in almost all aspects of its operations with about N66 billion disbursed to hundreds of small, medium and large scale businesses.

This was disclosed on Thursday at the 57th annual general meeting (AGM) of the bank in Abuja.

The Minister of Industry, Trade and Investment, Mr. Okechukwu Enelamah, said that the bank was able to consolidate on its developmental impact during the year under review, despite the general economic downsides across the country.

Enelamah, who was represented by the Protem Chairman of BoI, Mr. Olufemi Edun, said it was highly commendable that while several institutions in the country experienced a downgrade in their credit ratings in the year, BoI got a reaffirmation of its AA+ National Credit Rating accompanied by a stable outlook by Fitch Ratings.

He noted that Moody’s, which is another international rating agency also assigned Aa1.ng/NG-1 rating, the second highest of national scale rating categories to the bank.

He added: “Augusto, the foremost Nigerian rating agency similarly upgraded the bank’s domestic rating of A+ to AA- in 2016. This is a testament of the strong corporate governance and enterprise risk management practices that the bank has integrated into its operations.

“In the year under review, the bank disbursed N65.9 billion to 737 micro, medium and large enterprises, which helped to create over 500,000 direct and indirect jobs.”

In the same vein, the acting Managing Director/Chief Executive Officer of BoI, Mr. Waheed Olagunju, said that the bank has within its 15 years of establishment, “invested over a trillion naira in more than 25,000 small, medium and large enterprises”.

Olagunju said that BoI had also assisted ventures spanning several sectors of the Nigerian economy including agro and solid minerals processing, petro chemicals and polymer, cotton textile and apparels, automobiles, creative industries as well as Information Communication and Technology.

According to him, “These enterprises have had considerable impact on Nigeria’s economy including the generation of more than five million direct and indirect jobs.”

He said that the bank recorded outstanding improvements across board including a 44 per cent increase in profit before tax (PBT) over the previous year 2015.

He added: “For instance, while the volume of new loans rose by 10 per cent to N171 billion, from N156 billion in 2015, disbursements to SMEs similarly went up by 42 per cent within the same period to N8 billion from N5.64 billion. More than 800 enterprises that could potentially generate over 1,000,000 jobs benefited from BoI’s facilities last year.

“The quality of the bank’s risk assets improved phenomenally as the ratio of non-performing loans dropped to 3.72 per cent in 2016 from 5.87 per cent in 2015. The average ratio of non-performing loans in Nigeria’s banking system rose to 14% in 2016 which is beyond the Central Bank of Nigeria’s threshold of 5%. The bank also posted an operating Profit Before Tax of N17bn, which represents a 44% increase over 2015’s N11.9bn.”

Olagunju said that BoI in its bid to ensuring the MSMEs account for at least 30% of its projected risk assets of N1.2 trillion by 2019, as at April 30, 2017 the bank had already exceeded last year’s disbursement to MSME’s by disbursing more than N13 billion as against last year’s N8 billion which represents 62% increase.

Accordingly, he said, BoI has embarked on a N1 trillion fund mobilisation drive within and outside the country to part finance the industrial component of the Economic Recovery and Growth Plan (ERGP) as well as support ventures that would fast-track Nigeria’s realisation of the Sustainable Development Goals (SDGs) and also rev BOI’s risk assets up to N1.2 trillion by 2019 in line with its revalidated strategic plan (2016-2019).

“Under the plan, it is envisaged that enterprises financed by BoI would generate more than 5 million jobs. In this regard, the Bank of Industry has commenced discussion with the Development Bank of Nigeria and some foreign national as well as multilateral development finance institutions,” he added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Global Deal Activity Down by 4.5% in October 2020

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A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.

Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”

North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.

The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.

Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”

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Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business

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Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.

According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.

The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.

Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.

“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.

The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.

The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.

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Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB

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Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19  

The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.

This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.

Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.

In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.

“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.

“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”

In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.

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