The COVID-19 pandemic is a clear and present danger to the world especially the developing nations like Nigeria from a health as well as an economic perspective. The Bank of Industry understands that these are very challenging times for all Nigerians including our dear customers. This is why the Bank has been working tirelessly to provide the critical support required by our customers not only to survive but to thrive in these difficult times. The Bank is pleased to share with you all the palliative initiatives implemented so far to help cushion the impact of this pandemic.
The Bank of Industry has already implemented measures in compliance with the Federal Government’s directives on moratoriums for loans given by government-owned financial institutions, while also implementing its own measures to ensure that its customers are well-supported in line with its developmental mandate. It will be recalled that the President, had in his presidential address on March 29, announced palliative measures for the economic effects of the COVID-19 pandemic.
The Bank has promptly responded to the presidential directive as follows:
1. Communicated the moratorium period of three (3) months to customers and further advised that customers requiring more than three (3) months can apply for a further extension, which can be up to one year (12 months).
2. Reduced the interest rates on all BOI-funded projects by 2% pa from 10% to 8% pa, with effect from April 1. This has also been communicated to customers and partnering commercial banks;
3. Worked with our funding partners to obtain interest rate reductions on some of the funds that we manage. In particular, the Bank worked with the Nigerian Content Development Management Board to reduce the interest rates on credit facilities approved under its managed fund from 8% pa to 6% pa. This reduction in interest rate, as well as extension of moratorium period, has been communicated to all customers.
4. All INTERVENTION FUNDS granted by the Central Bank of Nigeria and disbursed by the Bank of Industry have been covered by the CBN’s palliative measures, which include moratorium extension and interest rate reduction to 5% pa, which has also been communicated to the relevant customers.
5. The Bank has written to all the Managing Directors and Chief Risk Officers of its partnering commercial banks, officially notifying them of the Bank’s position on these initiatives.
6. Also, in the Bank’s bid to support government and private sector initiative to fight COVID-19, the Bank donated N700m to the CACOVID Fund, as well as the Lagos State Government and the FCT Ministerial Committee on COVID-19.
These are trying times. But you can take comfort in the commitment of our health officials, the coordinated response of our Federal Government and the strength of our financial system. The Bank wishes to restate its commitment towards actualising its goal of supporting economic development and industrialisation, which it would continue to implement through its mission of providing financial and business support services to enterprises in line with the economic agenda of the Federal Government of Nigeria.