The Bank of Industry (BoI) on Friday honoured some of its customers, who have shown excellent performance by fully repaying loans granted them as at when due.
These customers, numbering 10, were inducted into the BoI’s Hall of Fame.
The ceremony took place at the bank’s Lagos premises, with the outstanding customers in attendance.
The inductees include Ammasco International Limited, Kano; Cement Company of Northern Nigeria, Sokoto; Cobef International Limited, Port Harcourt; Happinex Foam Industries Nigeria Limited, Benin and Innoson Technical and Industrial Company Limited, Enugu.
Others are Nigerian Aluminium Extrusions Limited, Lagos; Nigerian Foundries Limited, Lagos; Paul B Nigeria Limited, Enugu, and Rumbu Sacks Nigeria Limited, Kano.
Giving the background for the establishment of the Hall of Fame, BoI Managing Director/Chief Executive Officer, Rasheed Olaoluwa, said: “In the final analysis, banking is about financial intermediation.
“In addition to their shareholders’ funds, commercial banks mobilise deposits in order to have sufficient funds for on-lending.
“Therefore, the ability of banks to repay the depositors is a function of their ability to collect the loans granted.
“A high level of non-performing loans can impair the ability of a bank to meet its maturing deposit obligations and this can lead to a run on the bank. “However, for development banks like BoI, we derive our funding not from millions of depositors, but from government funding, which is provided from government resources that are limited, finite and subject to competing demands.
“Therefore, the effect of any loan default is more severe, with certain socio-economic consequences.
“It is capable of defeating government’s laudable objectives of financing strategic sectors of the economy, of promoting SMEs and of creating jobs for Nigerians.
“Therefore, when customers default on their loans, they deprive other Nigerian businesses of the much needed access to finance.”
Olaoluwa revealed that a total of 24 companies had been identified as customers with shady character and questionable integrity.
