E-Financial
BOI’s Disbursement to SMEs, Large Enterprises Hits Over N1trn in 6 Years
The Bank of Industry (BoI) has revealed that its disbursement to Micro, Small and Medium Enterprises (SMEs) and large enterprises has reached over N1trillion in six years.
According to the Development Finance Institution (DFI), the feat was achievable through strong strategic partnerships with various institutions in the state, federal government agencies and private sector organisations.
Oluwakayode Pitan, the Managing Director, Bank of Industry (BOI), disclosed this while speaking at the 37th Omolayole Management Lecture series themed, “African Continental Free Trade Area (AfCFTA)- Prospects for African Youth Leadership,” organised by the Lagos Chamber of Commerce and Industry (LCCI).
He said the BOI is at the forefront of industrialising the Nigerian economy and would continue to take deliberate steps towards addressing issues related to financing gaps across all business segments.
According to him, in the last three years, over $3 billion has been raised through the international financial market in its objective to continuously improve its capacity to bridge the huge financing gap that exist in Nigeria’s industrial sector.
He added that there is a growing number of start-up businesses in Africa at present, as young people are embracing their entrepreneurial mind-set and technological skills, resulting in the rapid digital transformation of the continent.
He advised that to address this risk and realise the gains expected for a free trade area, there is a need for increased infrastructure investment in Nigeria, saying that one way to achieve this is through public-private partnerships (PPPs), which should be significantly leveraged towards building sustainable infrastructural facilities across the country, while the Government provides an enabling governance framework.
“The newly established Infrastructure Company (InfraCo) will play a lead role in its implementation,” he added.
He added that despite making up a significant percentage of the continent’s population, the participation of young people in cross-border trade and trade governance matters is still very limited.
He said improving transparency and ease of doing business in Nigeria has a larger implication now that the AfCFTA has taken off, saying that this would enable foreign investors make informed decisions on where to site their manufacturing hubs within African nations that will provide them with more benefits.
“Because there are no restrictions on moving goods across borders, the need to establish a business in a country where it is easier to operate will now be a more desirable factor than the existence of market prospects,” he said.
Earlier, the president, LCCI, Toki Mabogunje, expressed concerns over the high level of youth unemployment pegged at over 33 per cent as at Q4 2020
She stated the urgent need for programmes and projects that engage the nation’s innovative, dynamic, youth to unleash their latent potentials for the benefits of the country.
She added that the AfCFTA provides an opportunity for our young entrepreneurs and startups to explore a continent-wide market if well launched, structured and implemented.
She stated that the agreement became operational on January 1, 2021 and marks the biggest free trade area globally in terms of the number of participating countries since the formation of the World Trade Organisation in 1995.
She added that while the take-off of AfCFTA should be lauded, much work remains to be done as critical parts of the agreement are yet to be finalised, stressing that several key issues including schedules of tariff concessions, schedules of service commitment, rules of origin, investment, competition policy and intellectual property rights have not been concluded.
The LCCI boss said AfCFTA has the potential to accelerate socioeconomic development of the African continent, saying that if well-implemented, it would stimulate economic growth, generate job opportunities, and helps to facilitate the economic diversification of African economies while ensuring people, products and services move freely across the continent.
She said according to estimations by the United Nations Economic Commission for Africa (UNECA), AfCFTA has the capacity to expand Africa’s manufacturing output to $930 billion by 2025, from $500 billion in 2016.
“The Brookings Institution also sees Africa’s economic size rising to $6.7 trillion by 2030 from $3.4 billion in 2019 on the back of a well-implemented AfCFTA.
A successful AfCFTA requires the active participation of Africa’s Young leaders in the implementation process, which is the rationale for selecting this edition’s topic which seeks to prepare, equip and put in place machinery that will help young leaders improve their management dexterity and hone their administrative expertise,” she added.
She stated that there is still a lack of clarity about the type of value addition that must occur within an AfCFTA State party for a product to benefit from tariff reduction, adding that there are pending negotiations at continental level delaying the implementation of the trade agreement.
“A great deal of sensitisation and enlightenment still need to be done on the implementation modalities,” she advised.
She also noted that there are concerns about the adherence of participating countries to the protocols within the AfCFTA framework, saying that Africa’s trade narrative, has been challenged by trade malpractices such as smuggling, unilaterism and violation of trade protocols,” she added.
In his lecture, Dr. Michael Omolayole said the provisions of the treaty setting up AFCFTA are, if sincerely implemented by African countries, likely to propel them from the third world to the first world.
“Believe me, | am not exaggerating. On our part as Nigerians, | think we were over cautious in being reluctant to ratify the treaty until the last moment. We could have avoided the hesitation, if we had set up a think-tank of brilliant and knowledgeable Nigerians in the matter of economics and free trade, right from the beginning of the African Union (AU) deliberating on the matter,” he said.
In his words: “Although | have not seen the treaty, | believe as an international instrument, provisions would have been made for countries especially the large ones like Nigeria, to protect themselves against breach of the treaty and against acts of sabotage.
It is better late than never, but thinktanks can still be set up and our brilliant young people with requisite knowledge should be encouraged to dissect and digest the treaty and to set up study groups to master the treaty inside out.”
The World Bank has approved a $500 million loan to Nigeria to support the country’s Community Action for Resilience and Economic Stimulus Programme.
According to information obtained from the bank’s website on Sunday, the approval, which took place on March 28, 2025, marks a significant step in addressing Nigeria’s economic challenges through expanded access to livelihood support, food security services, and grants for poor and vulnerable households and firms.
The project, officially titled the NIGERIA: Community Action (for) Resilience and Economic Stimulus Program, aims to provide essential support to households affected by economic downturns and to bolster community resilience.
It also seeks to improve food security and create economic opportunities for populations most affected by recent economic disruptions.
According to the World Bank, the program represents a significant step toward addressing systemic vulnerabilities in Nigeria’s economy.
By channeling resources directly to underserved communities, the project should alleviate the burden of rising living costs while fostering sustainable growth.
The $500 million loan is not the only financial commitment Nigeria anticipates this week as two additional funding packages are in the pipeline, awaiting final approval.
One of the loans is valued at $80 million and will focus on accelerating nutrition outcomes across the country.
The second, worth approximately $552 million, is designed to enhance access to quality basic education nationwide as both projects are scheduled for final clearance on March 31, 2025.
These loans are part of the World Bank’s broader strategy to support Nigeria’s development priorities, most especially in areas such as healthcare, education, and poverty alleviation, while the institution emphasized the importance of implementing these programs efficiently to ensure maximum impact.
While the loans aim to address urgent socio-economic needs, Nigeria’s rising debt profile has raised concerns among stakeholders. Under the President Bola Tinubu’s leadership, the country has received approvals for 11 World Bank projects totaling 7.45 billion in less than two years. However, data from the Debt Management Office (DMO) reveal that only 774.99 million (about 16% of the approved amount) had been disbursed as of July 31, 2024.
This slow pace of disbursement has sparked debates about the efficiency of project execution and fund utilization
Depositors of Heritage Bank (in-liquidation) with balances exceeding the insured sum of ₦5 million will be paid from the sale of physical assets and debt recovery efforts soon, the Nigeria Deposit Insurance Corporation (NDIC) announced on Sunday.
With substantial progress recorded in asset realization, the first tranche of liquidation dividends will be paid to uninsured depositors in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes claims.
The clarification follows concerns raised by depositors regarding the status of their uninsured funds.
A statement issued by Hawwau Gambo, acting head of Communication & Public Affairs, NDIC, reiterated the Corporation’s commitment to ensuring timely payments.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.
In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits.
Providing an update on the ₦5 million maximum payout per depositor, the NDIC noted significant progress while acknowledging some challenges affecting certain depositors, including issues related to Bank Verification Numbers (BVN), Post No Debit (PND) restrictions, and Know Your Customer (KYC) limitations.
“Significant progress has been made in reimbursing insured deposits up to the ₦5 million limit per depositor.
“However, depositors yet to receive payments are largely those without Bank Verification Numbers (BVN) or alternate accounts in other banks, which are required to process payments through the Nigeria Inter-Bank Settlement System (NIBSS). Others have Post No Debit (PND) restrictions on their accounts.
“Additionally, some accounts have KYC limitations, such as Tier 1 accounts that restrict maximum lodgment of funds, while others have name mismatches requiring resolution.
“Some depositors who have already been paid may also be unaware due to a lack of mobile transaction alerts on their alternate accounts where the NDIC deposited their insured funds.
“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the statement read.
Regarding payments to uninsured depositors, the Corporation explained:
“While depositors with balances above ₦5 million have received their insured sums, the remaining amounts will be paid as liquidation dividends, in accordance with the Corporation’s statutory mandate.
“The NDIC has made substantial progress in selling the bank’s physical assets and recovering debts to ensure that depositors with balances above the insured limit receive their payments as soon as possible.
As a demonstration of this commitment, the Corporation began realizing physical assets and investments while aggressively recovering outstanding risk assets, alongside verifying and paying insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements.”
The NDIC emphasized that its simultaneous approach of paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the significant progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, to be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims.”
For clarity, the referenced section states:
“Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed, the NDIC added.
E-Financial
NDIC Fixes April as Time Uninsured Depositors of Heritage Bank will Receive Liquidation Dividends
Depositors of Heritage Bank (in-liquidation) with balances exceeding the insured sum of ₦5 million will be paid from the sale of physical assets and debt recovery efforts soon, the Nigeria Deposit Insurance Corporation (NDIC) announced on Sunday.
With substantial progress recorded in asset realization, the first tranche of liquidation dividends will be paid to uninsured depositors in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes claims.
The clarification follows concerns raised by depositors regarding the status of their uninsured funds.
A statement issued by the NDIC’s Acting Head of Communication & Public Affairs, Hawwau Gambo, reiterated the Corporation’s commitment to ensuring timely payments.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.
In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits.
Providing an update on the ₦5 million maximum payout per depositor, the NDIC noted significant progress while acknowledging some challenges affecting certain depositors, including issues related to Bank Verification Numbers (BVN), Post No Debit (PND) restrictions, and Know Your Customer (KYC) limitations.
“Significant progress has been made in reimbursing insured deposits up to the ₦5 million limit per depositor.
“However, depositors yet to receive payments are largely those without Bank Verification Numbers (BVN) or alternate accounts in other banks, which are required to process payments through the Nigeria Inter-Bank Settlement System (NIBSS). Others have Post No Debit (PND) restrictions on their accounts.
“Additionally, some accounts have KYC limitations, such as Tier 1 accounts that restrict maximum lodgment of funds, while others have name mismatches requiring resolution.
“Some depositors who have already been paid may also be unaware due to a lack of mobile transaction alerts on their alternate accounts where the NDIC deposited their insured funds.
“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the statement read.
Regarding payments to uninsured depositors, the Corporation explained:
“While depositors with balances above ₦5 million have received their insured sums, the remaining amounts will be paid as liquidation dividends, in accordance with the Corporation’s statutory mandate.
“The NDIC has made substantial progress in selling the bank’s physical assets and recovering debts to ensure that depositors with balances above the insured limit receive their payments as soon as possible.
As a demonstration of this commitment, the Corporation began realizing physical assets and investments while aggressively recovering outstanding risk assets, alongside verifying and paying insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements.”
The NDIC emphasized that its simultaneous approach of paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the significant progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, to be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims.”
For clarity, the referenced section states: “Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed, the NDIC added.
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