BPE commences privatisation process for BoI - Olaoluwa

ITRealms:

 

The Managing Director, Bank of Industry (BoI), Mr Rasheed Olaoluwa, has disclosed that the Bureau of Public Enterprises (BPE) has commenced bidding for the appointment of advisors for the privatisation of Bank, reports ITRealms.

Olaoluwa disclosed this at the weekend in Lagos at a media parley with theme "BOI Impacting on Nigeria Industrial Sector" and said that much progress has been made on the privatisation of the bank by the Federal Government in the last few months.

He also said that with the privatisation, the bank would be able to get more funds for its development mandate, stressing that BoI’s authoriised capital currently stood at N250 billion, of which N146 billion was paid up, adding the bank still had some gaps to fill. 

“However, you are all aware that government has been taken steps to privatise BoI. Just two days ago (Thursday), BPE opened financial bid for the appointment of advisors. We don't know the percentage that will be sold; all we know is that it is going to be partial privatization,” he said.

BoI boss pointed out that beyond recapitalisation, the capital has always come from government but they were taking steps that will enable the bank look for funding from other sources and that is why they are doing some ratings.

He underscored the need to get more funding for the bank's operation had made the management to embark on aggressive recovery of its non-performing loans.

He said that unlike in the past when the volume of non-performing loans was relatively high, the bank had reduced it to below five per cent within a short period.

Olaoluwa said that the bank had even gone as far as blacklisting defaulters.

He said that the volume of the bank's non-performing loans was relatively high in the past, but the bank had embarked on initiatives to manage it downward, including loan recovery. 

``The development bank in Brazil, their NPL is 2.6 per cent; the development bank in South Africa is 16.2 per cent,” he noted.

BoI further emphasized that in Nigeria, among the commercial banks, the average in the industry is about six to seven per cent. That we are able to reduce it to below five per cent in BoI is highly commendable,” he said. (NAN)

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Pix: Managing Director, Bank of Industry (BoI), Mr Rasheed Olaoluwa, at a function.