Bank of Industry (BOI) is a Development Finance
Institution in Nigeria designed to provide financial assistance to Startup
businesses, SMEs, and large Enterprises. The bank of industry targets
businesses that engage in manufacturing and processing activities. Target sub-sectors
include Agro-processing, Solid Minerals, Information Technology, Oil and Gas
and Creative Industry. BOI provides loan of about N5 million at a
very low interest rate to Agro-based Industries with two guarantors and 20%
equity contributions as collateral. Terms and conditions and form of security
for higher loan or startup loan can be negotiated at BOI office. BOI finance is
geared towards creating jobs for unemployed youths in the value chain line and
also help Federal Government realize his Industrial Revolution Plan. It
is important to develop a viable business
plan for your enterprise or company and register your business with CAC
before you apply for loan.
Major Funds Available at BOI
FISH FARMING & PROCESSING FUND
The one billion naira fund is designed to promote
fish farming and processing and generates employment for Nigerians. The fund
will be accessed by limited liability companies and enterprises engaged in fish
farming and/or processing in all parts of the country as part of the SME
Aquaculture and Fish Processing Clusters. Each
project along the value chain is expected to create between 48 – 120 direct
(8-20) and indirect (40-100) jobs. Each applicant can access up to 50 million
with 9% interest rate, 1% processing fee, 3-5 years tenor and 6-12 months
moratorium.
COTTAGE AGROPROCESSING FUND
BOI is establishing a Cottage
Agro-Processors Fund to support the establishment of cottage agro processing
plants that will produce food products and raw materials for industries within
and outside the Staple Crop Processing Zones (SCPZs) across Nigeria. The Fund
will be accessed by Limited Liability Companies, Enterprises and Cooperative
Societies engaged in the processing of agricultural products either into
finished food products or raw materials for industry or for the export market.
The products include; Cassava, Oil Palm, Rice Paddy, Groundnut, Yam, Maize,
Sorghum, Aquaculture, Livestock, Cocoa, Shea nut, Plantain, Cashew, Tomato and
all their individual derivatives. Interest is 9%.
CASSAVA BREAD FUND
Cassava Bread Fund was
created by the Federal Government as part of the transformation policy in the
agribusiness sector, to ensure that Nigeria becomes the largest cassava
processor having occupied the position of largest producer of the commodity in
the world, and guarantee the reduction of food import bills; a number of
measures including the cassava bread policy were endorsed by the Government. The
policy was launched in 2008 and requires the inclusion of 20% High Quality
Cassava Flour (HQCF) in bread, and 30-40% HQCF in other confectioneries such as
pastries, pain -raising, croissants and cakes. Interest
rate is 5% per annum payable at the end of every month.
RICE AND CASSAVA
INTERVENTION FUND
BOI
is the designated fund manager of the N13.6billion rice and Cassava fund based
on the MOU executed by the Federal Ministry of Agriculture and Rural
Development (FMARD) and the Bank of Industry on October 23, 2014. The Fund
which has defined hallmarks has to be utilized solely for the establishment of
ten (10) medium scale Rice Mills of about 36,000 metric tons of paddy per annum
and six (6) High Quality Cassava Flour Mills of about 18,000 metric tons of
cassava tubers per annum capacity in identified locations across the nation,
namely Kano, Kogi, Kebbi, Zamfara, Bayelsa, Bauchi, Benue, Ogun and Anambra
States for the Rice Mills and in Ondo, Ogun, Abia, Delta, Nasarawa and Cross
River States for the High Quality Cassava Flour Mills. The Fund will be
accessed by Limited Liability Companies, and Enterprises engaged in adding
value to the rice/cassava commodities through the setting up of milling
facilities. Interest Rate is 5% for Long Term Loan.
NATIONAL
PROGRAMME ON FOOD SECURITY (NPFS)
The
implementing agencies for the scheme are the Federal Ministry of Agriculture
and Rural Development (through the National Programme on Food Security (NPFS))
and the Bank of Industry (BOI) Limited. The programmes targest Agro-allied
processors and farmers. It aims to enhance the productivity of the Apex Farmers
Association (AFA), registered co-operative groups and SMEs in all thirty-six (36)
States. The interest rate is 8%.
SUGAR
DEVELOPMENT COUNCIL FUND
The
Federal Government in furtherance of its policy on Sugar development,
instituted the National Sugar Development Council (NSDC) Fund for the
establishment and resuscitation of companies engaged in the production of
sugar, ethanol and sugar cane. The MOU between BOI and the National Sugar Development
Council was signed on November 6, 2009. The Fund was established to support the
development of the value chain through local inclusion to reduce the nation’s
dependency on imported refined sugar. The Fund will be accessed by Limited
Liability Companies and Enterprises engaged in sugar value chain such as Sugar
plants, Sugar Refineries. Interest rate is 4%.