The Nigerian Bank for Commerce and Industry (NBCI) was established
under the NBCI Decree of 5th May, 1972 to foster greater acceleration of the indigenisation process. The principal functions of the Bank include the provision of equity Capital and funds by way of loans to indigenous persons, institutions and organisations for medium and long term investments.
The authorised capital of the Bank is N50 million which comprises 500,000 shares of N100 each. Of this, N10 million has been paid up by its shareholders viz: the Government of the Federation of Nigeria (60 percent) and Central Bank of Nigeria (40 percent). Medium and long term loans to indigenous persons and institutions are granted, especially in futherance of the indigenisation Decree. Loans and Credit facilities are also available in respect of other viable businesses and projects including expansion of existing business and new projects.
Under Schedule Il of the Nigerian Enterprises Promotion Decree (NEPD) the bank engages in the provision of financial assistance in respect of certain classes of companies which are offered for sale to the general public. Shares not taken up by the general public are acquired by
the Bank.
By December 1980, the amount of approvals made by the Bank increased by N16 million or 8.5 percent from N187.9 million recorded at the end of March 1980 to N203.9 million. Similarly, the number of projects approved during the period increased by 17.8 percent i.e. from 137 to 185. The cumulative amount of N203.9 million sanctioned as at the
end of December, 1980 was made up of N17.4 million equity investment,
N156.9 million medium and long term loans and N29.6 million in form of
guarantees. In pursuance of the Federal Government's indigenisation objectives. NBCI gave priority to Food and Beverages, Building Materials, and Manufacturing Projects. The Bank is still in the process of expanding, and efforts are being made to have branches in each of the states in the Federation.