House of Reps Call for Increased Funding for the BoI

The House of Reps Committee on Industry is urging increased budgetary allocations to the Bank of Industry (BoI) to empower it in fulfilling its mandate effectively.

Members of the committee emphasized the necessity for policy reforms to facilitate the achievement of BoI’s objectives, particularly in providing low-interest credit facilities to pivotal sectors such as industry and energy.

During a visit to the BoI office in Lagos and a tour of funded projects, Committee Chairman Enitan Dolapo-Badru highlighted the critical role of BoI in offering single-digit interest rates, especially for small and medium-sized enterprises (SMEs). Dolapo-Badru underscored the adverse impact of high commercial bank interest rates, citing examples of once-thriving companies like Dunlop and Michelin.

The committee stressed the urgency of legislative support to enhance BoI’s legal framework, amplifying its operational efficiency and outreach. Additionally, Chairman of the House Committee on National Planning, Budget, and Economic Development, Ibrahim Isiaka, emphasized the energy sector’s challenges, advocating for mandatory recapitalization of distribution companies to address funding shortages and enhance electricity distribution.

Member Ahmed Jaha highlighted the importance of focused investment in peaceful areas like the Northeast to prevent unrest escalation and promote regional development. Meanwhile, Dr. Paschal Abodike emphasized the need for accessible financing to unleash the entrepreneurial potential of constituents, particularly supporting local manufacturers like Innoson Motors.

In response, Omar Shekarau, Executive Director of Micro, Small and Medium Enterprises at BoI, outlined ongoing efforts to address these concerns and called for legislative support for increased funding to finance projects and businesses. He highlighted BoI’s expanded presence in northeastern states, offering tailored financial products to foster SME development.