The House of Representatives Committee on Industry has called for increased budgetary allocations to the Bank of Industry (BoI) to enable it to effectively fulfill its mandate. In a statement released on Tuesday members of the committee emphasized the necessity for policy reforms to empower the bank in achieving its objectives.
The committee underscored its support for BoI and its role in providing low-interest credit facilities to critical sectors, particularly in the industrial and energy sectors, to stimulate economic growth and regional stability. During a visit to the BOI office in Lagos and a tour of key projects funded by the bank, the committee’s chairman, Enitan Dolapo-Badru, stressed the importance of supporting banking institutions like BoI that offer single-digit interest rates.
Dolapo-Badru highlighted the significance of these single-digit loans for small and medium-sized enterprises (SMEs), which often struggle under the weight of high interest rates charged by commercial banks, ranging from 20 to 30 percent. He pointed out the unfortunate demise of once-thriving companies such as Dunlop and Michelin, emphasizing the urgent need for financial structures that can provide genuine support to the industry.
As discussions progress, stakeholders are expected to monitor developments closely to ensure that adequate resources are allocated to support BoI’s crucial role in driving industrial growth and fostering economic development.
