The Senate has urged the Bank of Industry to increase the percentage of dividends accruing to the Federal Government, even after it had paid an N8.2 billion dividend to the Central Bank of Nigeria and the Federal Ministry of Finance between 2014 and 2019.
A statement on Thursday in Abuja by Chief Kayode Odunaro, Media Adviser to the Chairman, Senate Committee on Finance, Solomon Adeola (APC- Lagos), said Adeola made the call at an investigative hearing on revenue remittances by Ministries, Department and Agencies in Abuja.
Adeola described the seven per cent 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, 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 the 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.