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LequteMan
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Nigeria's Bank of Industry, BoI has kicked against a bill by the Senate seeking to scrap it.
The bill, which is backed by the finance ministry and the central bank, proposes to establish the National Development Bank in the place of the BoI.
A bill seeking to establish the NDB had passed second reading in the Senate on October 12.
BOI Acting MD, Waheed Olagunju, at a senate hearing said the bank shouldn't be scrapped but should be funded.
“We are of the opinion that the BoI, as presently constituted, is fulfilling the mandate envisaged in the proposed legislation by supporting genuine entrepreneurs. Therefore, it should be left to continue its operations as it is. The merger envisaged in the proposed bill has already taken place.
“The BoI should be provided with more capital to be able to further support the real sector instead of duplicating functions by creating new development finance institutions, bearing in mind the failure of similar DFIs in the past, such as the NBCI, NERFUND, People’s Bank, Community Banks, etc.”
The bill, which is backed by the finance ministry and the central bank, proposes to establish the National Development Bank in the place of the BoI.
A bill seeking to establish the NDB had passed second reading in the Senate on October 12.
BOI Acting MD, Waheed Olagunju, at a senate hearing said the bank shouldn't be scrapped but should be funded.
“We are of the opinion that the BoI, as presently constituted, is fulfilling the mandate envisaged in the proposed legislation by supporting genuine entrepreneurs. Therefore, it should be left to continue its operations as it is. The merger envisaged in the proposed bill has already taken place.
“The BoI should be provided with more capital to be able to further support the real sector instead of duplicating functions by creating new development finance institutions, bearing in mind the failure of similar DFIs in the past, such as the NBCI, NERFUND, People’s Bank, Community Banks, etc.”
