According to the Minister of State for Industry, Trade and Investment, Senator John Enoh, the Federal Executive Council approved the design and construction of a new headquarters for the Bank of Industry at Eko Atlantic City, Lagos.
Enoh said the council considered five key memoranda related to the ministry, with three focused on industrial development and two on trade and investment. Among them, the BoI headquarters project received formal approval.
“Council approved the award of contract for the design and build of the Bank of Industry headquarters in Eko Atlantic City,” he said.
The minister stated that the new headquarters is expected to serve as a central hub for the BoI’s expanded role in financing industrial growth, small and medium-scale enterprises (SMEs), and export-oriented manufacturing.
The Bank of Industry Limited (BOI) is described as Nigeria’s oldest, largest, and most successful development financing institution (DFI).
It facilitates the transformation of Nigeria’s industrial sector by providing financial and advisory support for the establishment of large, medium, and small projects/ enterprises and the expansion, diversification, rehabilitation, and modernisation of existing enterprises.
On its website, the BOI said, “This commitment has continuously driven us to develop innovative strategies, interventions, and solutions that are propelling the Nigerian economy towards sustained growth. The Bank continues to support growth across various sectors, including Agro and Food Processing, Creative Industries, Engineering and Technology, Healthcare and Petrochemicals, Oil and Gas, Renewable Energy, and Solid Minerals, leveraging its 33 state offices nationwide.
“Our drive for developmental impact is far-reaching, cutting across vital industrial sectors, geopolitical zones, and multilateral stakeholders. We are focused on nurturing and expanding our economy’s emerging sectors while supporting established segments for increased global impact.”
BOI emerged from the merger between the Nigerian Industrial Development Bank (NIDB) and Nigerian Bank for Commerce and Industry (NBCI) with an authorised share capital of N50bn which was increased to N250bn in 2007 and N500bn in 2023.
According to the 2024 annual report, the bank recorded growth in profit before tax from N153.8 billion to N250.4 billion while its total equity grew from N672.9 billion in 2023 to N835.8 billion in 2024 representing 24%.
In 2024, the Bank disbursed N510.9 billion to 996,329 beneficiaries through BOI direct and indirect lending platforms as well as various social intervention funds managed on behalf of the federal government and other multilateral institutions.
In 2024, 10,208 farmers received financial support of N2.7 billion under this fund. Since inception, disbursements in the sum of N26.4 billion have been made to 109,114 farmers.
Under the Rural Area Programme on Investment for Development (RAPID) introduced in 2024, to provide financial support to nano, micro and small-scale businesses in rural areas, the initiative as of December 2024 disbursed N577million to 93 MSMEs in rural areas of all states of the federation, including the FCT.
By implication it will cost hundreds of millions of dollars to acquire a land at the Eko Atlantic City not to talk of the actual construction.
This, therefore, raises questions about the need for the new headquarters when the bank already has a 12-storey tower in Abuja and a spacious head office in Marina Lagos .
A public affairs analyst and economist who preferred anonymity also said there is no justification for a new headquarters, given the strategic roles and obligations of BoI which it has to fulfill.
“There is no justification for it. There is no compelling argument, there is no compelling case for the building of another head office. The function of BoI is to provide funding. BOI is not a manufacturing hub. What space do you need for you to function as a financier?
The office in Abuja is massive. The office in Lagos is also big. I don’t think we are getting our priority right. We have huge financing challenges. Many small businesses and manufacturers can’t still access funding. I am not saying they are not doing their work. They are doing well but they can do better. If they have that so much resources, it should be diverted to financing manufacturers, to supporting industrial infrastructure, to building industrial paths. That is what they should be doing. What do they need another head office for at Eko Atlantic?
“Do you know what it means to buy land and construct an edifice at Eko Atlantic? This is not the best way to spend their money,” the source said.
The analyst said the profit of the bank might not be enough to implement the project for the construction of a new headquarters for the bank, asking where the funding for the project would come from.
Another analyst who is a small and medium enterprise (SME) owner also shared a similar position. He said building a new office for BOI should not be a priority.
“What we need to showcase is the number of people, SMEs that have been empowered. It is not about the edifice. Nigeria is getting it wrong at all times.
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