What does the Bank of Industry (BOI) in Nigeria do?
The bank of industry assists businesses that are involved in manufacturing and processing activities. Target sub-sectors include Agro-processing, Solid Minerals, Information Technology, Oil and Gas and Creative Industry. Here is a list of SME product clusters that BOI currently supports:
1. Adire (Tie and Dye)/Aso Oke
2. Animal Feeds
5. Blocks and Interlocking Stones
6. Bottled Water
7. Ceramics & Tiles
8. Chemicals and Paints
9. Cosmetics/Hair Products
11. Digital Printing/Multimedia Publishing
12. Doors and Window Frames
13. E-Commerce/Information & Communications Technology (ICT)
15. Fish Smoking/Drying
16. Food Processing (comprising processing of agricultural products)
17. Foundries/Metal Fabrication/3-D Printing
18. Fruit Juice
19. Furniture/Wood Processing
22. Laundry and Dry Cleaning
24. Liquefied Petroleum Gas/Compressed Natural Gas
25. Meat Processing
27. Health Care (Medical Diagnostics)
28. Laboratory/ Orthodontist/Ophthalmology/ Physiotherapy)
29. Movie Production (Nollywood)
31. Quick Service Restaurants
34. Roofing Sheets
35. Soaps and Detergents
36. Solar (off grid)
37. Technical/Vocational Schools (Offering City & Guild Certificate)
38. Theme Parks
39. Water Transportation Riverine
40. Light Manufacturing (Paper, Roofing Sheets, lube blending, Paints etc)
41. Grocery packaging
Who can benefit from BOI finance/loans?
Bank of industry only provides financial assistance for enterprises or companies and not an individual person or group of persons.
The company / enterprise must be duly registered and applicants will be required to provide the registration number for a Limited Liability Company or business name for an enterprise before they can proceed with the bank of industry application.
What Items can BOI finance?
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.
You can also access your working capital requirements from any of the ten (10) SME friendly banks that Bank of Industry partners with at Monetary Policy Rate plus 6 percent.
How does BOI disburse its loans?
The bank doesn’t disburse its loans to the borrower in cash but to the vendors and suppliers of the equipment that the loan application is for.
How much finance can the Bank of Industry provide?
BOI’s loan support to the SME starts from N5 million. However, loan below N5 million are provided on BOI matching fund platform which is operated in collaboration with various state governments and on BOI’s Bottom of the Pyramid (BOP) scheme which is operated through MicroFinance Banks.
What Collateral does BOI require before disbursing loans?
As a way of safe guarding its funds, Bank of industry requires borrowers to pledge some assets to secure loan. However, the Bank also accepts other forms of security subject to adequate coverage of the loan being provided to the borrower. 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.
Kindly note that the Bank accepts assets previously pledged to other lenders as collaterals provided the Bank’s loan is adequately covered in the arrangement. Also note that the Bank accepts third party collateral.
Does BOI lend to business startups?
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.
What documents are needed to apply for Bank of Industry’s loans?
Here is a list of documents needed to apply for the Bank of Industry’s loan
- Formal Letter of Application
- Photocopy of Certificate of Registration
- Constitution and Bye-laws of Cooperative Society (only for Cooperative Societies)
- Business Plan
- Four (4) passport photographs of the Promoter (business owner)
- Photocopy of the Current Tax Clearance Certificate of the Business Enterprise and the Promoter.
- Photocopy of International Passport or Driver’s License or National Identity Card of the Promoter.
- Bank Statement of the Business Enterprise for a period of one (1) year (for existing business).
- Sales record for six (6) months and operating expenses.
- Evidence of availability of Collateral Security (e.g. landed property, Individual Guarantor, etc.).
- Formal Letter of Application
- Photocopies of Certificate of Incorporation and Certified True Copy of Memorandum and Articles of Association of the Company.
- Photocopies of the Certified True Copy of Forms C02 and C07.
- Business Plan.
- Photocopy of title documents to project site (Statutory Certificate of Occupancy or Deed of Assignment).
- 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).
- Approved Building Plan (If new building).
- Bill of Quantities or Contractor’s Estimate of Cost to be incurred on Factory Building.
- Valuation Reports on Factory Building(s) (for existing projects) and property offered as Collateral Security.
- Quotations for items of plant and machinery (at least 3 quotations from different sources).
- Three (3) years most recent Audited Accounts of the company (for existing company).
- Three (3) years most recent Tax Clearance Certificate for the Company and two (2) Directors.
- Four (4) recent passport photographs of each of the two Directors and the Company Secretary.
- Evidence of appointment of a Company
For more clarifications and to apply, visit the Bank of Industry website here >>