Lagos — THE Bank of Industry (BOI) is seeking N240 billion from domestic and foreign private sector operators to boost its capital base. The bank is to raise the money through Rights Issue and private placement. The private sector is expected through this offer to take up controlling shares in the bank. Indication to this effect emerged from the bank yesterday.

In a statement, the bank said its Share Capital "has been increased from N10 billion to N250 billion. The increase was one of the highlights of the bank's 47th Annual General Meeting held recently in Abuja. One hundred and twenty five billion ordinary shares of N2 each were created by a resolution passed by the bank's shareholders.

The new shares are expected to be subscribed to by existing shareholders while new members are to be admitted by private placement. The new shareholders would comprise domestic and foreign private investors who are expected to hold controlling shares."

According to the bank, "the bank's Chairman, Chief Olabode George, stated that under the new dispensation, the Federal Government will hold a lower shareholding through the Ministry of Finance Incorporated (MOFI) and the Central Bank of Nigeria (CBN). It is envisaged that the re-capitalisation programme will put BOI in a better position to meet the long term finance needs of the Nation's industrial sector."

On the bank's performance in 2006, the shareholders were informed that the strategies that were introduced in January 2006 by BOI's new Board and Management yielded highly positive results. According to the bank's Chairman, Chief George, the bank, for the third consecutive year, operated profitably and also recorded monumental leaps in all its performance indices.

Loans and investments rose by 120 per cent from 88 that were approved within the bank's first four years of existence to 194 in 2006. In consonance with the paradigm shift that was affected by the new leadership, 83 per cent of the loans and investments approved in 2006 were to Small and Medium Enterprises.

The group Profit Before Tax increased by 1,987 per cent from N68 million in 2005 to N1.4 billion in 2006. By this performance, the debts inherited from BOI's precursor institution, the Nigerian Industrial Development Bank Limited, were written off.

Consequently, the bank for the first time in almost a decade and a half declared a 10 per cent of its Profit after Tax as dividend. This translated to N3.80 kobo per share. It was also disclosed that for the first time in recent history, the bank's three subsidiaries and associate companies operated profitably in 2006.