Question

Difficulty: EasyMerchant, Development, and Specialized Banks

Match each specialized development bank in Nigeria on the left with its corresponding primary financial mandate on the right.

  • Bank of Industry (BOI)Providing long-term financing and credit for industrial project expansion and manufacturing
  • Bank of Agriculture (BOA)Providing credit and financial support for agricultural production and rural development
  • Federal Mortgage Bank of Nigeria (FMBN)Providing long-term credit and loan facilities for residential housing construction
  • Nigerian Export-Import Bank (NEXIM)Financing and promoting non-oil foreign trade and export expansion

Answer

The correct pairings are: Bank of Industry (BOI) matches with providing long-term financing for industrial project expansion; Bank of Agriculture (BOA) matches with providing credit for agricultural production; Federal Mortgage Bank of Nigeria (FMBN) matches with providing long-term credit for residential housing construction; and Nigerian Export-Import Bank (NEXIM) matches with financing non-oil foreign trade and export expansion.
Each development bank in Nigeria was established by law to address market failures and lack of long-term funding in specific critical sectors of the economy: the Bank of Industry supports manufacturing; the Bank of Agriculture supports farmers and agro-processing; the Federal Mortgage Bank of Nigeria supports home ownership via long-term mortgages; and the Nigerian Export-Import Bank facilitates non-oil international trade.

Step-by-Step Solution

1
Identify the primary sector focus of each development bank
BOI targets industry, BOA targets agriculture, FMBN targets real estate/housing, and NEXIM targets foreign trade/exports.
Specialized and development banks in Nigeria are government-established institutions tailored to solve sector-specific financing bottlenecks.
2
Match each institution to its exact operational objective
BOI -> Industrial financing; BOA -> Agriculture credit; FMBN -> Mortgage loan facilities; NEXIM -> Export-import trade finance.
Aligning each bank's statutory responsibility with its target economic sector ensures accurate matching.

Key Concept

Roles and Sectoral Mandates of Specialized Development Banks in Nigeria
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