NIGERIAN INDUSTRIAL DEVELOPMENT BANK (GUARANTEE) ACT

NIGERIAN INDUSTRIAL DEVELOPMENT BANK (GUARANTEE) ACT

What Is This Policy?

An Act in which the Federal Government of Nigeria guarantees the obligations of the Nigerian Industrial Development Bank, now merged into the Bank of Industry.

Who Does It Target?

Former NIDB creditors and counterparties Bank of Industry as successor Federal Ministry of Finance International lenders to the former NIDB

What Does It Aim to Achieve?

Enable the NIDB to borrow internationally by providing a Federal Government guarantee on its obligations, thereby accessing development finance for on-lending to Nigerian industries.

Key Features

Government Guarantee: The Federal Government guarantees the repayment of NIDB borrowings up to specified limits. Guarantee Terms: Prescribes the conditions and limits of the government's guarantee. NIDB Powers: NIDB was empowered to borrow internally and externally for development lending. BOI Succession: BOI succeeded NIDB and inherited its obligations and guarantee arrangements.

Current Status

Rollout Stage: Historical — NIDB merged into BOI in 2001 Coverage: Historical Beneficiaries: Former NIDB borrowers (historical); now BOI customers Funding: Government guarantee

How to Access

Current development finance: engage BOI at https://www.boi.ng Application method: Apply to Bank of Industry for current industrial development finance.

Official Resources

Website: https://www.boi.ng Contact: Bank of Industry (BOI)

Legal Framework

The Nigerian Industrial Development Bank (Guarantee) Act established state guarantees for NIDB lending. It is recognized under Section 315 of the 1999 Constitution as an existing law and has been largely superseded by the Bank of Industry (BOI), which absorbed NIDB. The BOI operates under the Central Bank of Nigeria Act 2007, the Banks and Other Financial Institutions Act 2020, and the Development Bank of Nigeria Act.