LAGOS, Nigeria – The Bank of Industry (BoI) and other development finance institutions (DFIs) in Nigeria are in urgent need of recapitalisation to meet their mandates effectively, according to experts.
Olalekan Oyerinde, director-general of the Nigeria Employers’ Consultative Association (NECA), emphasised the critical need for recapitalisation during a recent economic forum. “DFIs like BoI play a pivotal role in Nigeria’s economic development, but their current capital base is insufficient to meet the growing demands of the economy,” Oyerinde stated.
Development finance institutions are crucial for providing long-term funding for industrial projects, infrastructure development, and SMEs. However, analysts argue that years of underfunding and increasing economic pressures have left them struggling to fulfil their roles effectively.
Sources close to the Ministry of Finance confirmed that discussions are underway to address the recapitalisation issue. “The government recognises the importance of DFIs and is exploring options to strengthen their financial positions,” said an official, speaking on condition of anonymity.
Economists warn that failure to act swiftly could hamper Nigeria’s economic recovery efforts, particularly in sectors like manufacturing and agriculture. “Recapitalising these institutions is not just about survival; it’s about ensuring they can drive economic growth and stability in the long term,” noted financial analyst Tope Fajemirokun.
As stakeholders await concrete action, the recapitalisation debate underscores the broader challenges facing Nigeria’s financial sector amidst global economic uncertainty.