Senate wants FG’s dividend share in BoI increased to 20 per cent — Sen. Adeola

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Senate wants FG’s dividend share in BoI increased to 20 per cent — Sen. Adeola

The Senate has urged the Bank of Industry (BOI) to increase the percentage of dividends accruing to the Federal Government from the current 10 percent to 20 percent.

The bank had paid an N8.2 billion dividends to the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance, between 2014 and 2019.

Adeola described the seven  to 10 per cent used by the Board of Directors of the bank to determine dividend on the net profit of the bank as too low and that the bank should consider increasing the percentage to 20 per cent or more.

“While I want to commend the BOI for running an efficient bank, that is adding value to our industrial production as well as earning revenue for the Federal Government, I want to say that more money should be paid to the government in view of the financial constraints the country is facing at this point,” he said.

Adeola urged the Managing Director of the BOI, Mr Olukayode Pitan, to bring the issue of  increased dividends to the bank’s Board of Directors, to help reduce recurrent budget deficits and borrowings by government .

He said that given the 2021 budget deficit of about N6 trillion, the country was sourcing for revenue for a supplementary budget for procurement of COVID-19 vaccine and for fighting insecurity.

Adeola also called for a confirmation, with treasury receipts, on the payment of the dividend by the BOI into the Consolidated Revenue Fund.

Pitan had earlier told the committee that BOI had paid a dividend of N8.2 billion to CBN and Federal Ministry of Finance as shareholders in the bank, and over N1 billion as one  per cent Stamp Duty to the Federal Inland Revenue Service.

 

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