FG to Recapitalise Bank of Industry with ₦750b

The Federal Government has given approval that the Bank of Industry (BoI) be recapitalised to the tune of ₦750 billion.

The General Manager, Operations, BoI, Joseph Babatunde, confirmed the development while presenting a paper on the bank’s operations.

Mr. Babatunde said that the approval was given by President Goodluck Jonathan, adding that this would enable the bank to play a significant role in achieving its mandate.

The bank, with a mixed ownership structure, currently has an authorised share capital of ₦250 billion.

The ownership structure is divided as follows: Ministry of Finance, 59.54%; Central Bank of Nigeria, 40.63%; while private shareholders hold the balance of 0.1%.

Mr. Babatunde said under-capitalisation of the bank had hindered its ability to deepen developmental impact and attract needed long term funds from international and multilateral agencies.

The BoI also said that it has concluded arrangement to secure $500 million loan from the African Development Bank to expand its lending capacity.