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The Acting Managing Director of Bank of Industry (BOI), Waheed Olagunju on Monday kicked against Senate proposal to establish National Development Bank of Nigeria (NDBN).

He added that it is not the interest of Nigeria to dissolve BOI.

This is just as the Minister of Finance, Kemi Adeosun, Governor of Central Bank, Godwin Emefiele supported moves by Senate to establish National Development Bank of Nigeria (NDBN).

Olagunju who made this known during public hearing on the National Development Bank of Nigeria organised by Senate Committee on Banking, Insurance and Other Financial Institutions insisted that BOI as presently constituted is fulfilling the mandate envisage in the proposed legislation.

The Acting MD said what is necessary for government to provide BOI with more capital to be able to further support the real sector instead of duplicating functions by creating new Development Financial Institution (DFI).

In his word," we are of the opinion that BOI as presently constituted is fulfilling the mandate envisage in the proposed legislation by supporting genuine entrepreneurs, therefore it should be left to continue its operations as it is. 

"The merger envisaged in the proposed bill has already taken place.

"BOI should be provided with more capital to be able to further support the real sector instead of duplicating functions by creating new DFIS, bearing in mind the failure of similar DFIs in the past such as NBCI, NERFUND, People's Bank, Community Banks, etc.

"We advise that the National Assembly support industrialization by ‎ enacting legislation that would help create an enabling environment for business to thrive such as an amendment to land Use Act, Tax incentives for SMES, establishment of industrial Park. 

“This would substantially address the demand side challenges of finance SMEs in Nigeria as vagaries of the business environment has been making the sector unattractive to private and public lenders."

Speaking at the public, Adeosun who was represented by Director in Ministry of Finance, Christopher Gabriel said the Ministry strongly supports the draft bill adding that the proposal is in tandem with Economic reconstruction of the Federal government.

He applauded the 8th National Assembly for its efforts to come up with a bill that would address the economic problem of financial institution in Nigeria adding that is the existence of bank of Development.

According to him, we strongly support the draft bill; it is in tandem with economic reconstruction of the Federal government.

Also in presentation, the Governor of CBN represented by Okwu Nnanna who is the Deputy Governor on Financial System said CBN has no objection with the proposed bill adding that the bill when passed into law will address the challenges ‎facing the economy.

According, we have no objection, we welcome this development, we have challenges facing the economy, and the biggest challenges are the Capital.

In his opening remarks, Senate President Bukola Saraki said the National Development Bank of Nigeria (establishment bill) is one of those bills identified as crucial in expending Access to finance opportunity to Nigerians.

Saraki appealed to stakeholder to present honest opinions on the issue at stake to the committee so that the problem affecting SME in Nigeria can be addressed.

In his words, “this is public hearing is therefore another avenue to seek intellectual and professional inputs from experts like you in the financial sector to query the framing of the bill. 

“We will be very glad to get your honest opinions on such issues as the values to be derived from the merging proposed under the bill especially affecting other SME financing institution and the advantages or otherwise of seeking a one-stop-stop special purpose SME financial entity."

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