The Bank of Industry (BOI) has warned businesses that deliberately refuse to repay loans obtained from the institution that they risk facing the maximum sanctions available under its recovery framework, stressing that borrowers who are financially capable but unwilling to honour their obligations will not be spared consequences.

The Executive Director in charge of Micro, Small and Medium Enterprises (MSMEs) at BOI, Edu Oluwatoyin, gave the warning while explaining the institution’s approach to loan recovery.

Oluwatoyin, however, said the development bank would continue to provide support, including loan restructuring and repayment adjustments, for businesses experiencing genuine operational difficulties, insisting that Bank of Industyremained committed to helping enterprises survive, recover and expand.

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According to him, the institution adopts a humane approach to industrial financing by examining the circumstances surrounding each business before determining the appropriate intervention.

The BOI executive director explained that businesses affected by circumstances beyond their control, including disruptions to international shipping, rising operational costs and other economic challenges, could benefit from the institution’s intervention.

Oluwatoyin said Bank of Industry could consider restructuring loans, extending repayment timelines or making other arrangements to enable affected businesses regain financial stability and eventually fulfil their obligations.

What He Said About Genuine Loan Defaulters in Distress

However, he drew a distinction between genuine borrowers in distress and recalcitrant debtors, particularly those demonstrating irresponsibility, deficiencies in character or capacity in managing their businesses, or an unwillingness to repay despite having the means.

The executive director maintained that BOI’s loan recovery policy was designed to protect public resources while ensuring that businesses genuinely requiring assistance were not unnecessarily pushed into collapse.

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Oluwatoyin spoke during a monitoring visit to BOI-supported businesses across Ondo and Ekiti states, where he inspected enterprises benefiting from the institution’s financing and assessed their production capacity, operational challenges and expansion prospects.

He said the visit, which spanned several days, was intended to evaluate the impact of BOI financing on industrial growth, employment generation and economic development.

According to him, some beneficiaries had recorded substantial improvements in production capacity following access to Bank of Industry’s loans, particularly in the cocoa and palm kernel oil value chains.

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His words, “There are actually maybe two or three ways of looking at it. I said something earlier, Bank of Industry being the most humane and I am very deliberate about my choice of words.

“If we look at you as you are and realise that this thing is maybe the vagaries or challenges of the ups and downs that come with business, definitely we will find a way to work with you so that you can get your loan paid.

“The other one is what you call recalcitrant debtors, maybe people who have been irresponsible, who have some kind of character or capacity deficiency in managing.

“If you come to that, we have no choice than to come with you with the maximum consequence available so that we can retrieve our loan.

“You also have people who are capable but unwilling to pay. Again, the same treatment will be meted out”.