The bank of industry is a development finance institution in Nigeria which targets
businesses that engage in manufacturing and processing activities. Target
sub-sectors of BOI include Agro-processing, Solid Minerals, Information Technology,
Oil and Gas and Creative Industry. However, Bank of industry only finances enterprises
or companies and not an individual person or group of persons hence, the company /
enterprise must be duly registered and you will be required to provide the
registration number for a Limited Liability Company or business name for an
enterprise before you can proceed with your application. The bank is
principally set up to finance industrial equipment used in manufacturing. The
Bank does not finance land and building which are expected to be financed from
equity. The bank does not disburse the loan to the borrower in cash but to the
vendors and suppliers of the equipment that the loan application is for. BOI’s
loan support to the SME starts from N5
million, although you can still access below that amount.
As part of the fiduciary responsibility in managing
funds under its care, Bank of industry requires that you pledge some assets to
secure you loan. However, the Bank also accepts other forms of security subject
to adequate coverage of the loan being provided to you. Types of security the
Bank accepts include:
- Legal
mortgage on a landed property. The property must be duly registered with a
Certificate of Occupancy
- Debenture
on assets of the company
- Bank
Guarantee
- External
Guarantors with Notarized statement of Networth for loans below N10
million.
Please note that the Bank is willing to share assets
previously pledged to other lenders provided the Bank’s loan is adequately
covered in the arrangement. Also note that the Bank is willing to accept third
party collateral.
Startup
businesses
While the Bank under its general
risk acceptance criteria requires a prospective borrower to have at least three
years acceptable performance track record, it can also lend to start-ups at its
discretion and on a case-by-case basis. A startup would need to provide proof
of cognate experience in its business area and would need to have a highly
qualified management and operational team with sound management structure.
List of Product Cluster financed by BOI
1 Adire (Tie and Dye)/Aso Oke
2 Animal Feeds
3 Aquaculture
4 Bakery
5 Blocks and Interlocking Stones
6 Ceramics & Tiles
7 Cosmetics/Hair Products
8 Dairy
9 Digital Printing/Multimedia Publishing
10 E-Commerce/Information & Communications Technology (ICT)
11 Fashion/Garmenting
12 Fish Smoking/Drying
13 Food Processing (comprising processing of agricultural products)
14 Foundries/Metal Fabrication/3-D Printing
15 Furniture/Wood Processing
16 Gemstones
17 Greenhouses
18 Laundry and Dry Cleaning
19 Leather/Footwear
20 Liquefied Petroleum Gas/Compressed Natural Gas
21 Meat Processing
22 Mechatronics
23 Health Care (Medical Diagnostics
Laboratory/Orthodontist/Ophthalmology/Physiotherapy)
24 Movie Production (Nollywood)
25 Plastics
26 Quick Service Restaurants
27 Quarries
28 Recycling
29 Solar (off grid)
30 Technical/Vocational Schools (Offering City & Guild Certificate)
31 Water/Beverage Packaging
32 Theme Parks
33 Water Transportation
34 Light Manufacturing (Paper, Roofing Sheets, lube blending, Paints etc.)
While applying for loan you
will need to support your application with the following documents;
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Micro Credit
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SME/Large Enterprise
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1. Formal Letter of Application
2. Photocopy of Certificate of Registration
3. Constitution and Bye-laws of Cooperative Society (only for Cooperative Societies)
4. Business Plan
5. Four (4) passport photographs of the Promoter (business owner)
6. Photocopy of the Current Tax Clearance Certificate of the Business
Enterprise and the Promoter.
7. Photocopy of International Passport or Driver’s License or National
Identity Card of the Promoter.
8. Bank Statement of the Business Enterprise for a period of one (1) year
(for existing business).
9. Sales record for six (6) months and operating expenses.
10. Evidence of availability of Collateral Security (e.g. landed property,
Individual Guarantor, etc.).
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1. Formal Letter of Application
2. Photocopies of Certificate of Incorporation and Certified True Copy of
Memorandum and Articles of Association of the Company.
3. Photocopies of the Certified True Copy of Forms C02 and C07.
4. Business Plan.
5. Photocopy of title documents to project site (Statutory Certificate of Occupancy
or Deed of Assignment).
6. Photocopy of Title Documents (Statutory Certificate of Occupancy or Deed
of Assignment) to the Collateral Security. (This must be a landed property in
an urban center).
7. Approved Building Plan (If new building).
8. Bill of Quantities or Contractor’s Estimate of Cost to be incurred on
Factory Building.
9. Valuation Reports on Factory Building(s) (for existing projects) and
property offered as Collateral Security.
10. Quotations for items of plant and machinery (at least 3 quotations from
different sources).
11. Three (3) years most recent Audited Accounts of the company (for existing
company).
12. Three (3) years most recent Tax Clearance Certificate for the Company and
two (2) Directors.
13. Four (4) recent passport photographs of each of the two Directors and the
Company Secretary.
14. Evidence of appointment of a Company
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