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HOW AGRO-BASED INDUSTRIES CAN ACCESS BANK OF INDUSTRY (BOI) FUNDS






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%.
Before you commence application for loan  HERE it is important to understand basic requirements and qualification for BOI loan. Click HERE  
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