Having changed leadership, the BOI formulated policies which on the surface of it look a collection of very brilliant ideas. However, the Bank was indolent in carrying out a survey and involving key players and stakeholders in the formulation process.
I have often times put into writing my displeasure at the nonchalant and lazy approach of the Bank of Industry towards Industrialization in Nigeria. I guess my critical position in the media has spurred them towards media frenzy. They have in recent months taken their campaign on our TV screen showing off what they can do, what they have done and what they intend to do.
The Bank of Industry should be the No. 1 place to go for potential business owners but it has been the bane of the needy probably from inception. There is a school of thought among the masses that BOI is such an indolent and selfish institution designed only for the rich and corrupt politicians who in actual fact don’t need the funds from BOI to succeed.
googletag.cmd.push(function() { googletag.display('content1'); });
I have experienced a few shows of ignorance, laziness and insensitivity of BOI. However, I am so much appalled by their recent anti-people and anti business policies. I wonder why BOI officials who have no experience in Business sit in air conditioned rooms dictating unfavorable terms and formulating anti-business policies.
In recent years, a potential business owner intending to start an Oxygen manufacturing unit approached Bank of Industry for a loan package. This business idea was a gold mine as Oxygen is gotten free from the air. The Manufacturing process is all about sucking air from the atmosphere and separating Nitrogen and other gasses while storing the Oxygen in tanks. He was discouraged by a BOI official on the premise that the raw materials (air) for Oxygen production are very costly to get.
Having changed leadership, the BOI formulated policies which on the surface of it look a collection of very brilliant ideas. However, the Bank was indolent in carrying out a survey and involving key players and stakeholders in the formulation process. These set of policies rather than dot the landscape of Nigeria with striving industries have turned out to be counter-productive.
googletag.cmd.push(function() { googletag.display('content2'); });
One of the major changes made was the idea of Supply before Payment for machineries and equipments. After so much efforts to meet up with BOI’s huge conditional ties that includes presenting witnesses, collaterals and two guarantors who are expected to present collaterals alike, opening of a joint account with BOI and payment of 10% equity contribution, Loan applicants are mandated to approach BOI accredited machinery suppliers and get quoted machinery and equipment on Credit.
As of today, majority of BOI accredited suppliers of Machinery and Equipments don’t welcome such policy. They say it is impossible for them to release their items without financial commitment from BOI. That leaves us with a question. Did BOI involve their registered and accredited suppliers in the formulation of such policy? Did they carry out a survey to see how feasible the idea is? This policy has since inception being a cog in the wheel of progress as Loan Applicants are left in limbo. Caught between BOI who refuses to bend or amend their policy and the Suppliers not willing to part with their items until they get fully or partly paid.
I have had experiences with a few applicants who got Offer Letters for more than a year but are yet to receive such funds. Some receive text messages threatening them to pay up their debts of which they have not gotten. Some got part of the loan disbursed while they are unable to move forward due to some suppliers being unable to release equipments needed on credit as stipulated by BOI. It is raining now and some raw materials for food processing factories are surplus and cheap, unfortunately, the BOI don’t see sense in working with time to see that approved applicants gets what they need on time.
The Bank of Indolence must be realistic and have the interest of people at heart. They must revisit their brilliant but poorly planned and implemented policies and amend such that are rather cogs in the wheel of progress. They must realize the importance of timing in business and treat loans applications quickly without unnecessary delays. She must tap from the wave of “Buharic” revival in Nigeria for good.
The Bank of Industry should match their TV propaganda and campaigns with real action or remain the Bank of Indolence in the people’s heart.
googletag.cmd.push(function() { googletag.display('comments'); });