How to Get Bank of Industry Loan in Nigeria

The Bank of Industry, BOI started as the Investment Compay of Nigeria (ICON) in 1959 and eventually became the Bank of Industry in 2001. It is the oldest and most successful Development Finance Institution and is owned majorly by the Ministry of Finance and the Central Bank of Nigeria (with a 5.19% share). Dr. Olasupo Olusi is the current Managing Director and Chief Executive Officer of the Bank of Industry. The establishment of the BOI fosters growth and establishment of large, small and medium enterprises as well as projects. This has propelled the economic growth of the country as well as increased job opportunities. One of the strategies adopted to foster this mission is the loan scheme by the Bank of Industry as well as financial advisory support. We will discuss how to get a Bank of Industry Loan in this article.

The BOI has supported several establishments in various economic sectors including agriculture, oil and gas, healthcare, engineering and technology amongst many others. BOI loans range from as low as ₦50,000 to as high as ₦100 Million, with reasonable interests and long-term repayment tenure.

Partners of the Bank of Industry are:

• Private: Dangote Foundation
• Public: Central Bank of Nigeria, Federal Ministry of Industry, Trade and Investment
• Multilateral: Federal Ministry of Finance

It is important to note that the Bank of Industry does not provide financial aid to start-ups, only pre-existing ones. The loan provided only covers the purchase of equipment and tools as well as raw materials, and does not include lands/buildings.

Applying For a Bank of Industry Loan

• Visit the BoI website
• Navigate to Who We Serve
• For Micro Business, click on Micro Businesses
• Scroll down to Micro Business Products
• Select the Finance package that best suits your business needs.
• For Small and Medium Enterprises, click on SMEs under Who We Serve
• Navigate to the bottom of the page where you will see SME Products
• Select the Finance package that best suits your SME needs.
• For large enterprises, click on Large Enterprises under Who We Serve
• Navigate to the bottom of the page where you will see Large Enterprise Products
• Select the Finance package that best suits your Enterprise needs.
• After you have selected your preferred package, proceed to Apply Now. Read all eligibility criteria (you can also download and review the checklist) and then click on Get Started to continue with the application process.

Bank of Industry Loan Packages

A. Micro Businesses:

• MSME Distributor Finance
• Smallholder Farmer Cluster

B. SMEs:

• BOI/Aliko Dangote Foundation Fund
• BOI/Delta State Healthcare Fund
• Bottom of the Pyramid Scheme (On-Lending)
• Distributor and Supplier Financing Scheme
• Fashion and Beauty
• Food and Agro Commodity Processing
• Graduate Entrepreneurship Fund
• Light Manufacturing
• Livestock and Livestock Processing
• MTN Foundation YEDP Fund
• MTN Foundation Y’ellopreneur Fund
• Solar Energy Fund
• State Matching Fund
• Waste Management Product Fund
• Youth Entrepreneurship Support Program (YES-P)
• Youth Upscaling Fund

C. Large Enterprises:

• Brave Women Project
• CBN Backward Integration Fund
• CBN Industrial Funds
• CBN Textile Intervention Fund
• CBN Textile Revival Implementation Fund
• NADDC Fund
• NCIFUND
• On-lending to SMEs Through Commercial Banks
• Power and Airline Intervention Fund (PAIF)
• SME Refinancing and Restructuring Facility (RRF)
• Solar Energy Fund
• Artisanal Miners Intervention Fund
• Artisanal and Small Scale Miners (ASM) Finance Supporting Fund
• BOI Engineering and Technology Fund
• BOI Fashion Fund

LOAN APPLICATION / APPROVAL REQUIREMENT LIST

Below is a checklist of a part of the Loan application and approval requirement. You must visit the Bank of Industry website for a comprehensive list of all necessary documents and details that will help to facilitate your loan application process. Also, note that every loan package has its unique set of requirements.

• Formal Loan Application on Letterhead
• Duly completed Loan Application Form
• Feasibility Study Report on the project to be financed stating write-up on technology and manufacturing process(s), etc.
• Quotation/Proforma Invoice for the supply of items of Machinery and Equipment. Sources and quotations for Raw Materials expressed in quantity and amount
• Security: Bank Guarantee, a letter of intent for Bank Guarantee (with Risk Management being part of the authorized signatories) of the commercial bank issuing the guarantee. Any exception should be supported with the Bank’s approval limits OR
  • Legal Mortgage
  • Photocopy of the title document(s) to the property being pledged e.g Statutory Certificate of Occupancy/Deed of Assignment/Conveyance/Deed of sublease
  • Valuation Report on the Property Proposed as Security from BOI’s accredited value
  • Lease agreement, if operating from a rented premises
• A copy of the draft Technical, Management, Machinery Supply and/or Joint Venture Agreement (where applicable)
• Three years’ Audited Financial Accounts and most recent Management Account from a BOI accredited auditor (for an existing business) OR Statement of Affairs (for a business less than one (1) year)
• Company’s Bank Statement for one (1) year
  • The output of the process is the offer letter
  • Two options are proposed for this stage as shown below
• Regulatory approvals e.g NAFDAC certificate, Mining Lease
• Declaration of Outstanding Liabilities to Other Institutions and/or Individual