The Bank of Industry (BOI), alongside Nigeria’s Federal Government, has set up a ₦75 billion intervention fund to boost micro, small, and medium enterprises (MSMEs). It’s simple, accessible, and focused where it matters: Nigerian manufacturers and agro-processors who can leverage local resources and create jobs. Here’s the gist: 9% annual interest (a rarity), accessible loans, and a leg up on production for qualifying businesses under the National Enterprise Development Programme (NEDEP). Here’s how to get your slice of it.
What’s in it for You?
This fund isn’t just a cash injection; it’s built to actually work for MSMEs, aiming at big impacts in key areas.
- Low-Cost Financing: At 9% interest, this fund can make scaling up affordable.
- Job Creation and Training: The NEDEP program, managed by SMEDAN, is about more than finance—it’s a push for skills and jobs. They’re targeting 5 million new roles across Nigeria.
- Local Resource Emphasis: It’s a practical nudge for businesses that add value to local materials, pushing Nigerian production forward.
Are You Eligible?
If you’re a Nigerian MSME in manufacturing or agro-processing, here’s the checklist:
- Registered Business: Only officially registered entities (Limited Liability Companies, Cooperatives, or Enterprises) can apply.
- Sector Fit: You must work in manufacturing or agro-processing, with an emphasis on using local raw materials.
- Loan Cap: You can request up to ₦20 million, depending on your project’s scale and BOI’s assessment.
How to Apply – Step-by-Step
Step 1: Get Online and Apply
- Head to BOI’s website to access the application form.
- Be ready to enter your essential business info:
- Email, business registration number, company name, type (e.g., sole proprietorship), location, and phone number.
Step 2: Submit Documents for Verification
- Attach your:
- CAC Certificate (Certificate of Incorporation)
- Business plan explaining your project, use of funds, and goals
- Financial statements and tax identification number.
- This ensures BOI has what it needs to verify that your business aligns with fund goals.
Step 3: BOI Approval Process
- After verification, BOI will review your documents.
- Approval is based on how well your project matches NEDEP objectives.
- Once approved, BOI will get in touch via the contact information you provided.
Step 4: Fund Disbursement
- Approved? Great. BOI will wire funds directly to the bank account you’ve specified.
- Double-check your bank details in advance to avoid delays.
Why This Fund is a Game-Changer
For manufacturing and agro-processing MSMEs, this fund is as practical as it is powerful:
- Lower Costs: Access to capital at lower rates keeps overheads down, improving margins.
- Boosts Agricultural Output: Agro-processors can invest in productivity-enhancing tools, upping yield and food security.
- Broader Economic Impact: With more businesses operational, it means jobs, improved livelihoods, and a bump for Nigeria’s GDP.
Pro Tips for a Successful Application
- Detailed Business Plan: Clear goals and community impact go a long way.
- Up-to-Date Records: Tax and financial records should be recent and ready for review.
- Stay Connected: Check your email regularly, and don’t hesitate to reach out to BOI for updates if needed.