3 February 2014

Nigeria: BOI to Start Disbursement of U.S.$500 Million Fund

The Bank of Industry (BoI) on Friday announced that it would soon commence the disbursement of the African Development Bank's $500 million (N80 billion) fund to industrialists in Nigeria.

This is even as the bank put the total loan disbursement across various sectors of the Nigeria economy within two years at N870.44 billion

The chairman of the bank's Shareholders Committee, Mr Muhammed Dikwa, announced the plan at the 53rd Annual General Meeting of the bank in Abuja.

Dikwa said that the federal government facilitated the acquisition of the fund in order to deepen the bank's credit delivery process and funding of the industrial sector at concessionary rates.

"As soon as BOI complies with the disbursement process which has reached an advanced stage, the Nigeria industrialists will start benefiting from the incentive-backed facility," he said.

Aside from the AfDB's funds, he said that there were other existing development fund initiatives under the bank's management, including the N5 billion BOI/Dangote Small Scale Businesses Development Fund.

Other available funds are N100 billion Cotton, Textile and Garment (CTG) Fund, National Automotive Council (NAC) Fund, NFRA Rice Processing Intervention Fund, Cement Fund, Dikwa said.

He added that Cottage Industries Fund and Small Scale Processing Fund and National Sugar Development Fund were also available.

Given the breakdown of the N870.44billion disbursed across the various sectors of the country's economy within the years under review, he said while the agro-business benefitted N53.3billion, the entertainment sector gulped N337.60million.

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