BoI posted 78% assets jump to N1.86trn in 2020

BoI posted 78% assets jump to N1.86trn in 2020
April 12
23:28 2021

The Bank of Industry (BoI) printed a 78 percent increase in assets to N1.86 trillion in full-year 2020 from N1.04 trillion in same period in 2019.


The bank said the improvement in the group’s assets was driven to a large extent by the successful debt syndication of €1 billion and $1 billion concluded in March and December 2020 respectively.

Loan syndication happens when a group of lenders come together to fund various portions of a single loan for a single borrower. It is created when a loan is too large for one bank or falls outside the risk tolerance of a bank.

During the year, the group’s total equity also increased by 14.8 percent from N293.08 billion in the previous year to N336.48 billion in 2020.


Loans and advances to customers grew marginally in 2020 by 1.3 percent to N749.84 billion from the 2019 position, a reflection of the adverse impact of the challenging operating environment on growth of new facilities.

In 2020 profit before tax fell by 9.6 percent from N39.34 billion in 2019 to N35.54 billion, the bank explained that it was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers were responsible for this result.

Also in line with the directive by the Central Bank of Nigeria (CBN) towards supporting Nigerian enterprises following the adverse impact of COVID-19, the bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from 9 percent to 5 percent per annum for a period of one year and moratorium extension of 3 months (with a possible extension up to 12 months).


“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” a statement by the bank on Monday said.

The bank also implemented a reduced interest rates on all BOI-funded projects from 10 percent to 8 percent per annum, with effect from April 1, 2020, for one year and extended additional moratorium of (3 months) on principal repayment. This led to a reduction of led to a reduction in the bank’s interest income by N6.3 billion.

The challenging business environment also led to an increase in loan loss provision by N6.4 billion.

Additionally, the bank worked with funding partners, notably Nigerian Content Development Management Board to reduce the interest rates on credit facilities approved under its managed fund from 8% pa to 6% pa, which also include extension of moratorium period.


As part of its corporate social responsibility disposition, the bank donated the sum of ₦962 million towards the Coalition Against COVID-19 (CACOVID) initiative.

In recognition of the successful conclusion of the bank’s €1 billion syndicated loan facility in March 2020 as well as its sustained support for SMEs in Nigeria, the bank was bestowed with the Deal of the year (Debt) and SME Bank Of The Year Awards respectively at the African Banker Awards, organised by the Africa Development Bank.


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