Bank of industry loan requirements and application procedure

The  Bank of Industry is the Nigerian flagship for the empowerment of small, medium and large enterprises in the country. Currently led by Olukayode Pitan, a banker with decades of experience, the bank is easing the entrepreneurial terrain for many businesses in the country.

BOI Business Development Service Providers  (BDSP)

naijadazz-boi-nigeriaIn order to improve service delivery among millions of Nigerians, the management of the bank of Industry approved the BDSP.

The firms appointed for this role will serve as intermediaries between BOI and loan applicants. Their responsibilities include conducting capacity building programs, development of business proposals, monitoring the judicious use of the funds after disbursement.

In simple words, these BDSPs can guide you on how to package your loan applications in a way that it will be approved for funding by the  Bank of Industry. A list of the approved BDSPs can be found on https://www.boi.ng/smeconsultantslist/

Bank of industry loan overview

Bank of Industry regularly disburses loans primarily to businesses in manufacturing and processing activities. BOI does not interact with individuals on a personal capacity. To qualify for a loan, you have to be a registered company or business name with a verifiable certificate of registration.

If you are thinking of getting a loan form BOI, note that the bank will not give you funds for land and building as it is expected that you will raise funds for those using your corporate equity. If your needs are funds for manufacturing equipment, then you have struck gold as this is the highest priority for BOI.

Businesses engaged in fashion, Nollywood, leather, meat processing, quarrying, and solar, aquaculture, dairy, bakery, bottled water and so on can also apply for funding.

Note also that in certain circumstances, loans might not be given to you directly but to the vendors of the manufacturing equipment that you want to buy.

In order to safeguard the bank’s resources, collateral will be required for the loan granted. This include:

  • Legal mortgage on a landed property with a Certificate of Occupancy
  • Lien on assets of the borrower
  • Bank Guarantee and external guarantors with a notarized statement of net worth

Bank of industry loan requirements and application procedure

To apply for a BOI loan, go to the loan centre at https://www.boi.ng/apply/.

We strongly encourage you to walk into the nearest BOI office around you to discuss with an official about your eligibility before applying.

If there is no BOI office close to you, contact the nearest Business Development Service Provider around you (See https://www.boi.ng/smeconsultantslist/)

Supporting documents for Micro Credit

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 an 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.).

 Supporting documents for SME/large enterprise

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 the 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 centre).

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

KADSTEP – Kaduna startup entrepreneurship program

KADSTEP is a 10-week program designed to equip participants with success skills in the field of entrepreneurship. Participants who make a Grade Point Average ( GPA)  of 2.75 and above will qualify for a loan ranging between from N1 million to N10 million. This loan will be disbursed under special arrangement with the Bank of Industry. According to KADSTEP website, 1,276 entrepreneurs have been trained and 398 participants have accessed the loan till date. Qualified participants can apply on https://boi.ng/kadstep/

For more information on KADSTEP, call +234 703 193 3321.

The Nigerian content intervention fund (NCI)

NCI was established to empower Nigerians to participate in the highly risky and expensive oil sector. The oil and gas sector is dominated by foreign companies with its attendant impact on local capabilities. The government has intervened to address the inequality so as to give Nigerians a level playing field in the industry.

The types of funding available in the scheme include:

  1. Manufacturing Loan-$10m
  2. Asset acquisition Loan-$10m
  3. Contract Finance -$5m
  4. Community contractor finance scheme -$20m
  5. Loan re-financing -$10m

Eligibility

Contributors to National Content Development Fund and community contractors of oil-producing regions are eligible to apply. The applicable rate is 8%.

An application can be made at https://ncifportal.boi.ng/ncif/public/

Benefits of BOI

The Nigerian film industry will be forever grateful to BOI. Movies such as Half of A Yellow Sun, Caught In The Middle, 100 Days In The Jungle, The Department and so on were produced with funding from BOI.

The Vice President, Yemi Osinbajo recently inaugurated a shared facility for small and medium-sized businesses in Ibadan, Oyo State. This will go a long way in solving office facility challenges in the state.

The bank is also working on the establishment of a billion Naira off-grid energy fund for Niger Delta. This will assist people in rural areas to live better lives through access to renewable energy.

BOI fund types

Funds disbursed by BOI include   the following:

Youth entrepreneurship support programme (yes-programme): This is an empowerment program targeted at Nigerian youths (18-35 years).Online and classroom training will be provided with loans up to N5 million will be approved at the end of the training. Minimum qualification is OND and the interest rate is 9%.

Youth ignite program: Loans ranging from N100,000 to N500,000  are disbursed to youths that have participated in the Entrepreneurship Capacity Building Programme. Disbursement is made through selected microfinance banks across the country.

The graduate entrepreneurship fund (GEF): This fund was created in 2015 to help graduates across the country to find their feet in entrepreneurship.

It is targeted primarily at participants in the National Youth Service Corps (NYSC) program. Loans up to N2 million are accessible at 0% for qualified graduates. The loan will cover the purchase of equipment and working capital. To apply, see http://www.boi.ng/gef/

Nollyfund: This fund was created to assist movie producers to mobilize resources for quality films. The film industry has been recognised as a source of employment for actors, cinematographers, sound engineers, stuntmen, film distributors, makeup artists, directors, cameramen and so on.

Film making companies can apply at www.boi.ng/nollyfund

THE NIGERIAN Content Intervention (NCI) fund: This is for indigenous companies operating in the oil and gas industry.

 KADSTEP: This loan is available for qualifying students of the Kaduna State School on entrepreneurship.

Cassava bread fund: This fund is aimed at substituting the content of wheat in bread with cassava flour.

Cottage fund: The fund is targeted at agriculture and rural development.

Other funds include FGN Special Intervention Fund for MSME, NADDC Fund, National Programme on Food Security, Rice and Cassava Intervention Fund and Sugar Development Council Fund.

Head Office:
23 Marina Street, Lagos.
Nigeria
Customer Care 0700-CALL-BOI (07002255264)| Switchboard:(234)-1- 2715070-71
Email: [email protected]

Corporate Office:
BOI House
Plot 256, Zone A O
Off Herbert Macaulay Way
Behind Unity Bank
Central Business District
Abuja, Nigeria.

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