FG raises equity in Bank of Industry by N105 billion

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Kayode Pitan,MD,Bank of Industry

The Executive Director, Small and Medium Enterprises (SME),for the Bank of Industry (BoI), Omar Shekarau has disclosed that the Federal Government of Nigeria has raised its equity in the Bank of Industry by N105 billion.

He made the disclosure during an investigative hearing into the N105 billion loan allegedly converted to Federal Government’s shares as contained in the audit query issued by the office of the Auditor General of the Federation.

The hearing held at the instance of the House Committee on Public Accounts, chaired by Hon. Wole Oke.

While giving an update on the N105 billion loan, Shekarau disclosed that the certificates on the fresh Federal Government’s equity have been issued to the Federal Ministry of Finance Incorporated.

He added that the Federal Government holds 99 per cent of the total shares, while the balance of one per cent was owned by a group of Nigerians that have been with the bank since it was established 60 years ago.

Shekarau also explained that the N8.458 billion owed the bank by 58 delinquent debtors as at December 2015 are being recovered, adding that the bank has had to sell some assets of customers who failed to pay their loan, while the banks that guaranteed such loan have been made to pay them back.

According to him, about 40 per cent of the total debts have so far been recovered as at last week.

On the N2.77 billion You-Win project money deposited with the bank by the Federal Ministry of Finance, Umar said it was operated by the Accountant General of the Federation.

He explained that the money was judiciously utilised in line with the directive of the Accountant General of the Federation, while the balance of N163.8 million has been transferred to the Treasury Single Account.

While ruling, the Committee directed the BoI Managing Director to provide the details of all the beneficiaries of the N2.7 billion You-Win grants, addresses as well as the criteria used to select the beneficiaries.

Oke also demanded for documentary evidence of the N163.8 million interest accrued on the fund and remittance to the Consolidated Revenue Fund account.

 

 

 

 

 

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