The federal government’s plan to relocate the Bank of Industry (BOI) headquarters to Eko Atlantic City, Lagos, is generating scrutiny from analysts and industry stakeholders.

Critics question the move, highlighting that BOI already maintains substantial offices in Lagos, Abuja, and 33 states across Nigeria.

The relocation, announced last week by Senator John Enoh, Minister of State for Industry, Trade and Investment, received approval from the Federal Executive Council for the design and construction of a new headquarters at Eko Atlantic. The project aims to serve as a central hub for BOI’s expanded financing of industrial growth, SMEs, and export-oriented manufacturing.

BOI at a Glance

Established from a merger of the Nigerian Industrial Development Bank (NIDB) and the Nigerian Bank for Commerce and Industry (NBCI), BOI is Nigeria’s oldest and largest development financing institution (DFI). It supports large, medium, and small-scale projects across sectors such as agro-processing, creative industries, healthcare, renewable energy, and solid minerals, operating from 33 offices nationwide.

In 2024, the bank disbursed ₦510.9 billion to nearly 1 million beneficiaries, including 10,208 farmers who received ₦2.7 billion through agricultural support programs. Under its Rural Area Programme on Investment for Development (RAPID), the bank also provided financial support to 93 micro and small-scale enterprises in rural areas.

Why the Move Sparks Criticism

Eko Atlantic City, a privately funded, 10 million square meter coastal city on Victoria Island, is rapidly attracting major corporations like FirstBank, MTN, Shell, and TVC. While it promises modern infrastructure, land costs range between $1,500 and $3,000 per square meter, making construction of a new BOI headquarters potentially hundreds of millions of dollars in investment.

Analysts argue that the relocation is unnecessary and economically imprudent. BOI already has a 12-storey tower in Abuja, partially leased to other organizations, and a spacious head office in Marina, Lagos. Critics suggest that funds intended for this “vanity project” could be better used to finance SMEs and support industrial growth.

“Every naira going into another structure is money not going into productive work. BOI’s priority should be funding manufacturers and industrial infrastructure, not constructing a new headquarters,” said public affairs analyst Udom Owodiong.

Others note that the relocation may set a precedent for other government DFIs, such as the Bank of Agriculture (BOA) and Nigeria Export-Import Bank (NEXIM), potentially escalating costs for taxpayers without corresponding economic benefit.

Efforts to obtain comments from BOI management regarding the project were unsuccessful at press time.

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In a bold move to curb youth unemployment and stimulate economic growth, the Bank of Industry (BOI) has announced a N2 billion entrepreneurship initiative tailored exclusively for members of the National Youth Service Corps (NYSC) across Nigeria.

Dubbed the “N2bn BOI–NYSC Entrepreneurship Programme,” the scheme offers serving corps members access to loans of up to N5 million each at an attractive single-digit interest rate of 9% per annum. Beneficiaries will enjoy flexible repayment terms spanning three years, including a grace period of three months during which both principal and interest payments are deferred.

At the official launch event held in Abuja on Wednesday, Shekarau Omar, Executive Director for Micro, Small and Medium Enterprises (MSME) at BOI, described the initiative as a strategic intervention to transition young Nigerians from job-seekers to job creators.

Representing BOI’s Managing Director, Dr. Olasupo Olusi, Omar highlighted the enduring partnership between BOI and NYSC, which builds upon previous successes such as the Graduate Entrepreneurship Fund (GEF). Launched in 2015, the GEF has so far trained over 3,000 graduates, financed 609 startups, and disbursed more than N1 billion in loans.

“These figures are far more than statistics; they represent thriving poultry farms, fashion houses, salons, technology startups, and creative studios nurtured by young entrepreneurs,” Omar said. “The core takeaway is unmistakable: targeted capacity building combined with affordable financing and mentorship drives repayment, employment, and growth.”

Omar also praised the NYSC’s Skills Acquisition and Entrepreneurship Development (SAED) department for its pivotal role in equipping corps members with practical skills and entrepreneurial acumen, noting that the new loan programme is designed to complement SAED’s efforts.

“To all corps members, your service year is a launchpad, not a waiting room,” Omar advised. “Start small, plan meticulously, and maintain discipline in cash flow and compliance. With creativity and perseverance, you can become the next generation of entrepreneurs who will shape Nigeria’s economic future.”

The initiative is poised to provide critical financial support to thousands of young Nigerians, enabling them to harness their potential and contribute meaningfully to national development.

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The recommendation was part of MAN’s position paper on Nigeria’s third-quarter Gross Domestic Product (GDP).

In the document, MAN highlighted the importance of improving credit access for industries by enhancing credit information systems and broadening the range of acceptable assets for collateral. “It is critical to create special windows for providing single-digit interest rates to productive sectors and relax stringent conditions for SMEs to access funding,” the association stated.

MAN raised concerns over the Central Bank of Nigeria’s (CBN) continuous hikes in the Monetary Policy Rate (MPR), which have driven the average interest rate on loans to manufacturers to 28.1% in the second half of 2023. This, according to the association, resulted in an estimated N341 billion in losses for the manufacturing sector during the period.

To alleviate these challenges, MAN urged the government to maintain the current excise duty of N10 per litre on non-alcoholic beverages, warning that further hikes could jeopardize the industry.

MAN also appealed to the government to address outstanding foreign exchange obligations, stating, “It is important for the government to direct the Central Bank of Nigeria to clear $2.4 billion in FX forward contracts to support manufacturers.” Additionally, the group advocated for a review of import duty rates on production inputs not available locally, suggesting a pegged rate of N800 to facilitate manufacturing competitiveness.

In its recommendations, MAN called for prioritising infrastructure development along key economic hubs through increased budgetary allocations and public-private partnerships. The association urged the Federal Government to streamline customs procedures using technology and decentralise seaport operations to improve efficiency.

Regarding electricity, MAN requested that the Nigerian Electricity Regulatory Commission (NERC) review high tariffs for Band A customers and enforce Naira-based pricing for gas supplied to manufacturers. “Transparency in tariff charges, infrastructure improvements by Distribution Companies, and the introduction of outage compensation mechanisms are essential,” the association noted.

MAN’s position underscores the urgent need for comprehensive policy reforms to bolster Nigeria’s manufacturing sector, which remains critical to the nation’s economic growth and development.

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Olusi made the disclosure in Abuja on Wednesday at the BoI inaugural public lecture series which has the theme ‘Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria’, which also coincides with the unveiling of the BoI’s price intelligence platform

He said, “So far this year, the bank has supported MSME across the country through the disbursement of loans totalling about N77.65 billion. These loans were given to almost 1,000 MSMEs across the country to enable them to boost their operations.

“The bank has also recently signed a partnership agreement with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to provide a N1 billion fund at a single-digit interest rate to Nano and Micro Enterprises in Nigeria.

“Under the partnership, Nano and Micro enterprises will access a maximum of N1.5 million and N2.5 million, respectively, at a single-digit interest of 7.5% for working capital and 5% for term loan, with a tenor of 24 months.

“The bank was also appointed as the executing agency for the federal government’s N200 billion Presidential Intervention Fund for enterprises.

“The presidential grants programme aimed to disburse N50,000 grants to 1 million Nano business owners, ensuring equitable distribution of these grants across the 774 local governments of the country.

“Under this programme, the sum of N37.9 billion has been disbursed to 758,197 beneficiaries across 774 local governments in the country.

“We are working with state governors through their state focal persons to complete our 1 million target,” he further explained.

Speaking on the impact of BoI’s intervention on economic growth and job creation, the MD further stated that “Efforts to support large production enterprises is also progressing under the N75 billion FGN Manufacturing Sector Fund. About 140 manufacturing companies will receive loans of up to N1 billion at single-digit interest rates.”

Also speaking,  the Minister of Industry,  Trade and Investment, Dr Doris Uzoka-Anite, noted that the “Unveiling of the BOI  price intelligence platform (PriceSenseNG) is another bold step in enhancing transparency and accountability in the food commodity market.

“Through this, we will provide real-time insights into price trends, help stabilize markets, protect consumers, and inform policy decisions aimed at addressing food insecurity,” she stated.

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Olasupo Olusi, the managing director of BOI, announced the disbursement at the BOI International Women’s Day 2024 event with the theme ‘Inspire Inclusion’. He was represented by Mabel Ndagi, executive director of the micro-enterprise directorate.

“The year’s theme challenges everyone to move beyond the perceived norms and truly embody the principles of diversity, equity, and inclusion,” he said.

Olusi highlighted that the bank was also the local execution partner for the Islamic Development Bank’s Business Resilience Assistance for Value-Adding Services program in Nigeria, a $14.27 million initiative designed to support women-owned businesses, particularly those living in economically disadvantaged areas due to conflicts and social unrest.

“As of February 2024, the bank had disbursed the sum of N5.9 billion to 551 beneficiaries,” he said. “We are currently working with the African Development Bank on its AFAWA initiative, a Pan-African initiative to bridge the $42 billion financing gap women in Africa face.”

Olusi stated that BOI had created special funding and business support for female entrepreneurs and made gender funding one of the Bank’s six thematic critical areas of focus and support.

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He attributed this to President Bola Ahmed Tinubu’s commitment to social inclusion, empowerment for women, and economic support for disadvantaged women and mothers.

“To this end, the results have started manifesting as currently, more girls are enrolled in schools and women now occupy record-breaking positions in government and corporate organizations,” he said. “Businesses are increasingly acknowledging the significance of diversity and intentionally driving the gender inclusion/sensitivity agenda, particularly at the board level.

“To truly ‘Inspire Inclusion’, we must act, and it starts within our organizations by implementing policies that promote gender equality and creating an environment where women can thrive.

“As leaders, we have the responsibility to champion inclusivity by ensuring that our workplaces are free from discrimination and biases.”

He emphasized that achieving full inclusion for women required the proactive and collaborative effort of the Federal Government and sub-nationals, the organized private sector, civil societies, and individuals.

Omoyemi Akerele, founder of Lagos Fashion Week, emphasized the need to adopt sustainability models in the textile industry to contribute greatly to women empowerment.

Akerele noted that creativity was community art and its role in the ecosystem contributed significantly to community development.

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She, however, stated that unsustainable patterns in textile production contributed to problems of sustainability by leaving a carbon footprint.

“Fashion centers must henceforth be on track to meet its sustainability target, and we must be more committed to positioning the fashion sector toward a more equitable and sustainable future.

“We must be committed to providing socioeconomic intervention to designers and close the loop system to minimize the environmental impact of waste.

“Designers need to focus on design for durability using renewable or reusable material, and we encourage them to extend the product life cycle of materials used. A lot must also be done when it comes to consumer behavior on sustainability as well, and we must keep promoting a culture that allows us to reuse, resell, then recycle,” she said.

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