•BoI
Efforts by Governor Umo Eno of Akwa Ibom State to bring financiers of entrepreneurs and enterprises to Akwa Ibom State, yielded bountiful fruits, yesterday, Tuesday, February 6, 2024, as the federal government-owned Bank of Industry, BOI, opened its first ever branch in Akwa Ibom, since the state was created 36 years ago.
And Governor Eno led his entire government apparatus and the business community in the state to the 21-storey Dakada Tower, where BOI is comfortably located on the third floor.
At hand to supervise the landmark event on behalf of the bank was the Managing Director/CEO of the bank, Dr. Olasupo Olusi, along with his Regional and State Directors.
The arrival of the bank in Akwa Ibom State owes to the determination of Governor Eno to open the doors of Development Financial Institutions, DFIs, to Akwa Ibom entrepreneurs, and kick start the expansion of SMEs, a pillar of his government’s ARISE Agenda, regarded as the engine room of developed economies globally.
BOI is Nigeria’s foremost, oldest, largest and most successful DFI, with lower interest rates than the commercial banks. The mandate of BOI is to facilitate the transformation of Nigeria’s industrial sector by providing financial and advisory support for the establishment of large, medium and small enterprises, and the expansion, diversification, rehabilitation and modernisation of existing enterprises.
Speaking at the occasion, Governor Eno formally welcomed the BOI to Akwa Ibom State and announced a marching funding of N2billion to boost SMEs in the oil and gas-rich state. But he said the BOI must operate strictly according to its well known guidelines that has made the bank a success story in other parts of the country.
“I do not believe in free money. What free money does is that it discourages accountability. Once accountability is taken out of the life of any man or organisation, it becomes a big problem…But I believe that BOI can give funds with single digit interest rate to support our young people who have ideas and who are creative enough and ready to turn their creativity to money. Akwa Ibom people, especially our youths, are very creative. All they need is a little push in the right funding direction. I know that the BOI is here to give that little push”, the governor said.
Connecting the dots between BOI and Ibom Leadership and Entrepreneurial Development Centre (Ibom LED), which he established six months ago, Governor Eno said many beneficiaries of the BOI packages will come from the entrepreneurial training centre, who are already prepared and equipped to key into BOI facilities.
Said Governor Eno: “Our decision to place a huge premium on the promotion and support of SMEs is demonstrated and linked up to the establishment of Ibom Leadership and Entrepreneurial Development Centre (Ibom LED).
“Today, the Centre which is an affiliate of Lagos Business School, LBS, is training 800 young Akwa Ibom entrepreneurs on soft skills such as financial management, writing of business proposals, communications, marketing and how to pitch their proposals to lending institutions such as the BOI. “The goal is to train 5000 entrepreneurs within the first four years of this administration. As of today, they have trained 800 in eight months, which means we might even exceed the 5000 target we set for ourselves. The idea is that for every one of them that graduates, we provide a take-off grant of N500,000 and turn them over to BOI so that BOI can take up from there to support and nuture these businesses”.
The governor pleaded with the BOI to ensure that their support for any SME is strictly on merit.
“I will not bring pressure on you to give preference to anybody. Please do not accept pressure from any quarters to give loan to anybody unless the SME itself meets your conditions and criteria… This is business and the marching funds I am giving to you today is Akwa Ibom State investment. You will refund our money down the line. I am telling you upfront, don’t give loans to anybody that does not meet your criteria. I will not send anybody, don’t listen to anybody; but please spread your loans across the 31 Local Government Areas of the State…if they meet your criteria.”
Earlier, during a courtesy call on the governor inside the chamber of the State Executive Council, Dr. Olusi, the Managing Director/CEO of the bank, had attributed the arrival of the development bank in Akwa Ibom to “the passion of Governor Eno” to transform the entrepreneurial landscape of the state. A former World Bank official for 20 years, Dr. Olusi who confessed that he was visiting Akwa Ibom State for the first time, said he was very impressed with serene ambience of the state as well as the conducive business environment and incentives offered by the government of the state.
“This is my very first time in Akwa Ibom State and right from my first contact with His Excellency the Governor at COP28, the UN Climate Change Conference in Dubai, there has been no mistaking his strong passion and conviction that BOI can make a major impact on SMEs in Akwa Ibom State…This occasion is a demonstration of the willingness of Akwa Ibom State to collaborate with BOI in order to grow businesses here…Today, I am convinced that Akwa Ibom State is the Land of Promise”, Dr. Olusi said, to the applause of a jam-packed Exco Chamber.
Olusi disclosed that the BOI has many plans and programmes it would be pursuing in Akwa Ibom to support and expand new and existing SMEs, which will culminate in job creation and a vibrant economic environment in the state. They include single digit interest loans, generous loan tenor, business advisory and support, innovative financing solutions, as well as special support and financing to disadvantaged and vulnerable sectors within the grassroots that are typically underserved but critical to economic prosperity.
“The potentials and opportunities for economic growth that I have seen here is almost not replicated elsewhere. We will do our best here, to drive the economy of the state for the greater good of Nigeria”, Olusi said.
*Anietie Usen is Senior Special Assistant on Media to Akwa Ibom State Governor. He is also a regular contributor to The Frontier.
