The House of Representatives Committee on Industry has canvassed increased budgetary allocations to the Bank of Industry to enable it to meet its mandate.
In a statement made available to The PUNCH on Tuesday, members of the committee highlighted a pressing need for policy reforms to enable the bank to achieve its mandate.
The committee expressed support for BoI and its mandate to provide low-interest credit facilities to critical sectors, especially those in the industrial and energy sectors, to bolster economic growth and regional stability.
Speaking during a visit to the BOI office in Lagos and a tour of some key projects funded by BOI, the chairman of the committee, Enitan Dolapo-Badru, emphasised that supporting banking institutions like BOI, which offer single-digit interest rates, was crucial for the survival and competitiveness of domestic industries.
He said that those single-digit loans were crucial for small and medium-sized enterprises that would otherwise struggle under the burdensome interest rates charged by commercial banks, which could be between 20 to 30 per cent.
Dolapo-Badru highlighted the demise of once-thriving companies, such as Dunlop and Michelin, underscoring the dire need for financial structures that could truly support the industry.
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