BOI HQ move to Eko Atlantic draws scrutiny

The move by the federal government to relocate the Bank of Industry (BoI) headquarters to Eko Atlantic City in Lagos State is raising questions.

Questions are being raised over the desirability of the project despite having existing offices both in Lagos and Abuja.

Daily Trust reports that apart from its head office in Marina, Lagos, it also has a huge office at Herbert Macaulay Way, Abuja, in addition to offices in 33 states of the federation.

In Lagos alone, it has offices in Ikeja and Lekki, apart from the main office.

The planned relocation to Eko Atlantic was announced last week.

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.

BOI at a glance

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.

Relocation to Eko Atlantic City

Eko Atlantic City is described as an entire new coastal city being built on Victoria Island adjacent to Lagos, Nigeria.

It is a focal point for investors capitalising on rich development growth based on massive demand – and a gateway to emerging markets of the continent.

The city is privately funded by South Energyx Nigeria Limited – the developers and city planners, a subsidiary of the Nigeria based Chagoury Group of companies – working in strategic partnership with the Lagos State government and supported by the Federal Government of Nigeria.

Chagoury Group is owned by Billionaire Gilbert Chagoury, an ally of President Bola Ahmed Tinubu. The group also owns the Hitech construction company handling the Lagos-Calabar Coastal road.

Sitting on 10 million square meters of reclaimed ocean land, shielded by an 8.5 km sea wall, Eko Atlantic rivals Manhattan’s skyscraper district in size.

According to the management, it embodies self-sufficiency and sustainability with cutting-edge urban planning, power generation, pristine water supply, advanced telecommunications, expansive roadways, and tree-lined streets.

In recent times, major international corporations and entities have been relocating to the city in a move tailored towards decongesting the Central Business District in Marina.

FirstBank of Nigeria headquarters had earlier this year flagged off its 43-storey edifice at Eko Atlantic. Other companies relocating to the city are MTN, US Consulate, Shell, Television Continental (TVC).

Land at Eko Atlantic is priced per square meter with one square meter costing between $1,500 to $3000 according to recent estimate.

FirstBank’s project which was flagged off early this year for instance will stand on 252 meters and 115,000 square meters of built-up space.

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. Daily Trust gathered that the Abuja building was commissioned in 2022, and part of it is being leased out to organisations. Sources said at the moment, the Bank of Industry has more than enough offices.

Already, there are speculations that government institutions are being compelled to relocate to Eko Atlantic City; a move that could cost billions of naira in taxpayers’ money.

One of the posers being raised is if other DFIs would also be asked to relocate to the city. Apart from BOI, there are other development finance institutions established by the federal government like the Bank of Agriculture (BOA) and Nigeria Export-Import Bank (NEXIM).

While the number of offices acquired by BoI continues to grow, analysts say spending billions of naira on a new headquarters’ building would amount to a wasteful expenditure at a time the economy is struggling and the informal sector which constitutes 80 per cent of the economy requires more intervention to, not only upscale but contribute to reduction of unemployment.

“Allow BOI to fund the real sector instead of using all their funds for a white elephant headquarter at Eko Atlantic,” said a public affairs analyst, Mr. Innocent Don.

“The Bank of Industry has two identical towers at Central Area, Abuja. Why are they building a new headquarters,” he asked.

Another 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.

“It doesn’t make any economic sense, it is not even now that we are having a lot of challenges in the country and the SMEs are having difficulty in raising money, doing business. So how do we assist the SMEs? This should be our priority and not a new office at Eko Atlantic. It is a jamboree and a waste of funds.”

On his part, Udom Owodiong, who commented on his social media handle said, “In a country where SMEs can barely breathe, every naira going into another vanity structure is money not going into actual productive work. This is exactly how “infrastructure” becomes a funnel for cash in Nigeria. You don’t need forensic analysis to see the pattern.”

Efforts to get comments from the BOI on the development proved abortive at press time.

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