CBN restates BoI role in rapid industrialisation of Nigeria

  • As NSE market capitalisation increases by N98bn

The Central Bank of Nigeria (CBN) says the Bank of Industry (BoI) is necessary for rapid growth of small and medium enterprises in Nigeria.

Mr Babatunde Ogunlaja, the CBN Development Finance Manager, made the observation in Uyo on Thursday while talking to newsmen at the CBN Fair.

The apex bank also advised state governments to facilitate the establishment of BoI in their states to speed up industrialisation and stimulate economic activities nationwide.

Ogunlaja, who is an Assistant Director in CBN, said that BoI had the primary mandate of financing processors of raw materials and industrialisation.

He said that the bank was well positioned to help Small and Medium Enterprises (SMEs) by providing them funds.

Ogunlaja expressed regret that some states like Akwa Ibom did not have BoI branch, thereby compelling citizens to seek assistance miles away in other states with BoI.

“If there is BoI in a state, the speed of doing business will be fast and the cost of doing business will be low.

“You can easily walk to the next street where there is BoI, meet the manager, present your proposal and get consideration, that is one of the big gains of having BoI.

“Another gain is the speed of doing business, especially those who are producing raw materials will quickly get their raw materials evacuated and get paid,” he said.

Ogunlaja said that the organised private sector and associations were the right bodies to partner with government to ensure that BoI branches was established in their states.

Mr Sanni Mohammed. a Senior CBN Manager and Director of Consumer Protection, said that bank customers had the right to information, choice, safety, redress and privacy.

Mohammed also said that the bank customers had right to confidentiality and good service from any bank of their choice.

He said that the Consumer Protection Department of the CBN had investigated 8,044 complaints against financial institutions of which 354 complaints were against commercial banks.

Mohammed said that CBN had successfully resolved complaints involving N35 billion, advising participants at the fair to always lodge complaint and follow-up.

Participants at the fair were taught about electronic banking system and clean note policy of the bank.

The News Agency of Nigeria (NAN) reports that participants were also taught how to handle naira notes.

The sensitisation programme in Akwa Ibom people was designed to educate citizens, small business owners and entrepreneur about CBN’s activities and how to access funds for business development.

The two-day forum has the theme “Promoting Financial Stability and Economic Development”.

In the meantime, activities sustained positive trend on the Nigerian Stock Exchange (NSE) on Thursday with the market capitalisation appreciating by N98 billion lifted by Mobil Oil price growth.

The News Agency of Nigeria (NAN) reports that the market capitalisation increased by N98 billion or 1.11 per cent to close at N8.911 trillion compared with N8.813 trillion posted on Wednesday.

Also, the All-Share Index grew by 283.49 points or 1.11 per cent to close at 25,755.18 in contrast with 25,471.69 achieved in the previous trading day.

NAN reports that Mobil Oil for the second consecutive day led the gainers’ table, gaining N12.72 to close at N360 per share.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd, attributed the rally to NIPCO complete acquisition of 60 per cent stake in Mobil and dividend declared for 2016 financial year.

Omordion said that investors should be very careful in taking long position in Mobil as many companies acquired in the oil and gas industry were under performed due to corporate governance issues.

Further analysis of the gainers’ table indicated that 7UP followed with a gain of N9.01 to close at N104.90 and Dangote Cement appreciated by N3.50 to close at N164.60 per share.

Lafarge Africa appreciated by N2.58 to close at N50, while Guaranty Trust Bank added 50k to close at N25 per share.

On the other hand, Conoil topped the losers’ chart with a loss of N1.75 to close at N33.25 per share.

Nigerian Breweries trailed 17k loss to close at N124.63 and Access Bank dipped 13k to close at N6.28 per share.

Redstar Express lost 11k to close at N4.30, while International Breweries also dropped 11k to close at N15.89 per share.

Similarly, the volume of shares traded by investors appreciated by 52.24 per cent with an exchange of 241.62 million shares worth N1.49 billion transacted in 3,339 deals.

This was against a turnover of 158.71 million shares valued at N1.13 billion traded in 3,048 deals on Wednesday.

FBN Holdings was investors delight, trading 63.67 million shares worth N197.33 million.

Fidelity Bank followed with 43.60 million shares valued at N34.79 million and United Capital sold 23.89 million shares worth N69.89 million.

Zenith International Bank accounted for 15.29 million shares valued at N221.77 million.