A major turning point in the development finance institution's expansion and long-term development goals has been reached, as the Bank of Industry (BoI) announced that it has received regulatory authority from the Central Bank of Nigeria (CBN) to operate a Non-Interest Banking (NIB) Window. The license gives the bank permission to start offering non-interest banking services, putting it in a position to further promote equitable and sustainable industrial development by providing specialised finance solutions for high-impact and underserved business segments.
"This licence marks a pivotal moment in the bank's journey of transforming Nigeria's industrial sector," stated Dr. Olasupo Olusi, managing director and chief executive of the Bank of Nigeria, in response to the milestone. We can now service a new group of borrowers who were previously unreachable thanks to this licence.
He said, “This will allow the bank to scale its operations, introduce innovative financing solutions, and deepen support for Micro, Small and Medium Enterprises (MSMEs), as well as other underserved segments critical to Nigeria’s sustainable economic growth.”
In essence, BoI will be able to enhance support for the real economy, mobilise additional ethical finance, promote equitable growth, and integrate its financing activities with social and developmental goals thanks to the NIB operations.
BoI will be permitted to use authorised non-interest banking products to finance assets and raw materials for clients under the framework. Olusi added in a statement released by Theodora Amechi, Divisional Head, Public Relations, BoI, that the approval demonstrated CBN's faith in the bank's dedication to responsible lending.
According to her, the bank decided to start NIB operations in order to give more companies, especially those who have historically shunned traditional interest-based financing, access to ethical funding. She claims that the program creates new prospects for businesses that are driven by moral principles and religious beliefs, as well as for economic sectors that have trouble obtaining conventional finance.
According to Theodora, the platform makes it possible for these companies to obtain much-needed funding and engage in the formal financial system with assurance in a way that aligns with their principles and commercial reality.
In the meantime, BoI continues to be a leading Development Finance Institution (DFI), dedicated to promoting equitable economic development and industrial progress. Originally called the Investment Company of Nigeria (ICON), it was reorganised as the Nigerian Industrial Development Bank (NIDB) in 1964 in accordance with World Bank guidelines.
After merging with the National Economic Reconstruction Fund (NERFUND) and Nigerian Bank for Commerce and Industry (NBCI), the bank took on its current structure in 2001. Providing financial support for the start-up and growth of large, medium, small, and micro initiatives is its main objective.
