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The chairman of the Association of Nigerian Development Finance Institutions, Mr. Olukayode Pitan, has advocated for the use of creative ideas and collaboration by DFIs to overcome the financing gaps in addressing the economic transformation Nigeria needs.

He spoke at the third Association of Nigerian Development Finance Institutions’ Annual General Assembly in Abuja.

Mr Pitan, who is the managing director of Bank of Industry, said as the country strives to achieve sustainable development goals and address global challenges, the traditional financing models become inadequate. But by utilizing specialized funding arrangements complemented by non-financial services, DFIs are able to act as growth catalysts to the development of the Nigerian economy.

In doing so, he noted that challenges like specific market failures and institutional barriers prevent private investment from flowing to developing countries because of asset deterioration, weak corporate governance and risk management frameworks, and so on.

Highlighting the importance of international cooperation and solidarity in advancing innovative financing for developmental impacts, Pitan noted that developed countries can support developing countries by providing resources, technology transfer, and capacity building and it is for multilateral institutions therefore, have a critical role to play in coordinating efforts, mobilizing resources and ensuring the effective implementation of innovative financing mechanisms.

“Therefore, we must continuously work together, leveraging on our expertise, resources, and networks to unlock transformative projects by working in synergy with the organized private sector and our respective Governments,” he stressed.


Using the Bank of Industry as an example, he recalled that over the years, the bank has successfully raised funds from the international capital market, which has allowed it to not only fill critical gaps and provide the necessary funding for transformative projects, but also exposed it to global best practices and innovative solutions that promote institutional development, and improve the effectiveness of developmental initiatives.

He said, “Since the Bank of Industry commenced its innovative financing mechanism, the total assets have grown significantly by 381% between 2017 and 2023 (H1), reaching N2.38 trillion by the end of year 2022 and closing at N3.29 trillion as at June 2023.


“The equity position has grown by 188% from N220 billion in 2017 to N634 billion in 2023 (H1). The creation of quality risk assets has helped the bank to maintain a non-performing loan (NPL) rate of about 2% as at 2023 (H1). This falls below the regulatory threshold of 5%.  The bank maintains a strong corporate governance structure, its accounts are audited by one of the big 4 firms and it is rated by international and local rating agencies i.e. Fitch, Moody’s & Agusto & Co.”.

He advocated the exchange of technical expertise between DFIs members and similar organizations globally, prioritizing professional advancement while leveraging the knowledge from best-in-class economies as ways of deepening innovative financing.


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