Commercial and development banks in Nigeria are saddled with the responsibility of supporting and strengthening new and existing businesses in the country, regardless of whether they are small or medium scale enterprises. The establishment and statutory roles of these banks are geared towards promoting entrepreneurial initiatives and development in Nigeria.
Business development and relevant banks in Nigeria
The Nigerian Bank of Industry (BOI) was created by the integration of three financial institutions – the Nigerian Industrial Development Bank (NIDB), the National Economic Reconstruction Fund (NERFUND) and the Nigerian Bank for Commerce and Industry (NBIC).
Meanwhile, three other financial institutions have also been merged together to form the Nigerian Agricultural, Cooperative and Rural Development Bank (NACRDB). These are the Family Economic Advancement Programme (FEAP), Peoples Bank of Nigeria (PBN) and the Nigerian Agricultural and Cooperative Bank (NACB).
The Bank of Industry (BOI) came about through the reassessment of the NBCI, NIDB, and NERFUND among other development finance institutions in Nigeria. The BOI is grouped into four independent subsidiaries, namely –
- Leasing Company of Nigeria (LECON)
- NIDB Trustees Limited (NTL)
- NIDB Consultancy and Finance Limited (NIDB Consult)
- Industrial and Development Insurance Brokers (IDIB)
Main duties of the BOI
The BOI was created to finance and oversee the promotion of certain business projects in the country. These are business projects that prove the expertise of Nigeria over other countries in Africa and beyond; business projects that entail the development of locally sourced materials into finished goods in the country; and businesses with products that can be marketed within and outside the country with sustainable quality and profits to manufacturers.
To this extent, the BOI is created and designed to assist new and existing businesses in Nigeria with the following services and products –
- Business loans for medium and long-term purposes
- Start-up and working capital for new businesses
- Equity financing
- Management of trust funds
- Co-financing of small and medium businesses
- Building and equipment lease financing
- Trusteeship and corporate boards
- Development of business ideas and services
- Stocks and insurance brokerage
- Forex business and development
These business development banks contribute to strengthening the economic prospects of Nigeria and Nigerians in all manners possible via business and trades.