Industrialists Seek N97.46b Loans from BOI
From Cletus Akwaya in Abuja
At least 495 industrialists seeking capital to expand manufacturing activities have appro-ached the Bank of Industry(BOI) for various loans amounting to N97.46 billion.
This is against 330 applications valued at about N70.50 billion the Bank received as at end of 2003.
However, BOI has since inception granted approval to 28 projects with a total value of N3.4 billion.
Minister of Industry, Ambassador Magaji Mohammed who disclosed this in Abuja during the annual Ministerial briefing said th performance represented a major growth from the approval of two projects valued N306.62 million in 2002.
He said the rate of disbursement was generally hampered by difficulties in effecting legal documentation necessary for loan disbursement especially delays in obtaining the state Governor's consent required to mortgage landed properties under the Land Use Act.
"The management of the bank is currently exploring alternative ways of securing its loan facilities other than landed properties even as it continues to liaise with state government officials for speedy processing of approvals for Governor's consent," the Minister further explained.
Giving a breakdown of applications, Magaji said 190 0r 38.4 per cent were from large enterprises and 305 or 61.6 per cent were from small and medium enterprises while he put the corresponding value of the requests at N80.68 billion to N16.68 billion respectively.
He disclosed that the activities of the bank were expanded in 2003 when it was granted the mandate to manage the funds of the National Automotive Council (NAC)- a revolving fund established by the Federal Government for the development of the automotive sector through financing of component parts, manufacturing, automotive assembly plants and other auxiliary services providers.
On loans inherited from the defunct Nigeria Industrial Development Bank (NIDB), the Minister disclosed that the sum of N174.11 million was recovered in 2003 as against N683 million collected in 2002. He said however that the bank has devised far-reaching measures to enhance loan recovery.
"The bank's balance sheet increased from N5.7 billion in 2002 to N7.9 billion in 2003 as a result of additional equity injection by the principal shareholders. The future purpose of the bank is very bright as it is positioned to carry out its mandate efficiently that can stand the test of time" he stressed.
And to develop the Small and medium enterprises(SMEs), the Minister announced government plans to establish industrial parks/nursery project to be located in the premises of Industrial Development Centres (IDC) in the states where an average of 10 hectares of land would be readily made available.
To jump-start this project, he said a study had been completed while the Shell campsite in Owerri would be converted into an industrial park to provide sheds for about 250 micro and small scale industries in the field of metal works/foundry, textile, weaving and dyeing, garment making, shoes and leather goods, television/radio repairs, soap and cosmetics among others.
He said similar parks would be established as models in all the Zonal IDCs in Oshogbo, Zaria, Makurdi, Bauchi and Port Harcourt.
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