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What You Should Know About BOI Intervention Funds

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BOI Intervention Funds
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BOI Intervention Funds: we all know that the Bank of Industry is Nigeria’s oldest, largest and most successful Development Finance Institution (DFI). Incorporated in 1959 as Investment Company of Nigeria (ICON), transformed into Nigerian Industrial Development Bank in 1964 and ultimately into Bank of Industry (BOI) in 2001.

Interestingly, the Bank of Industry has a mission to transform Nigerian’s industrial sector by providing support services and finance for businesses across the nation. Their reach covers small, large, and medium establishments and projects.

Some core values of Bank of Industry are:

  • Service
  • Professionalism
  • Passion
  • Integrity
  • Innovation
  • Team spirit

The objectives of the BOI intervention funds? – what are they?

  • Matching fund
  • Managed fund

Matching fund:

The available funds under this category are:

BOI/ State Matching funds:

This fund is based on the partnership between BOI and some state governments. They are available to cooperatives, limited liability companies, and enterprises engaged in manufacturing and Agro-processing. It offers a maximum of N50 million and interest range between 5% to 10%.

BOI/ Dangote Foundation Matching Fund:

this fund is made available from a collaboration between BOI and Dangote foundation. It is N5bn fund that is available for companies in the merchandising, manufacturing, and Agro-processing sector of Nigeria. It has a per head limit of N50 million at 5% interest.

Managed fund:

the available products under managed funds are:

BOI/CBN Intervention fund:

this fund comes in different sections, which are the N235 Billion VBN fund for manufacturing and restructuring facilities of bank loans, and N300 billion for power and airline intervention fund. The N236Bn focuses on the manufacturing section to improve credit availability to manufacturers. On the other hand, the N300Bn exist to fast track the development of the aviation and power industry.

NADDC Fund:

the national automotive council fund is a sum of N16,91Bn that is aimed at developing SMEs in automotive parts production. The BOI collaborates with the National Automotive Council (NAC) to this regard.


Read Also: How to apply for 200bn CBN Social Housing Loan


Guidelines and Requirements for BOI Intervention Funds

  • N235 BILLION CBN INTERVENTION FUND FOR MANUFACTURING RE-FINANCING AND RESTRUCTURING FACILITIES OF BANKS’ LOANS.
  • N300 BILLION CBN POWER AND AIRLINE INTERVENTION FUND (PAIF)

N235 BILLION CBN INTERVENTION FUND FOR MANUFACTURING RE-FINANCING AND RESTRUCTURING FACILITIES OF BANKS’ LOANS.

These Guidelines relate to the N235 billion intervention fund for re-financing and restructuring of banks’ loans to the manufacturing sector (The Fund).

The objectives of the Fund are to:

  •  Fast-track the development of the manufacturing sector of the Nigerian economy by improving access to credit to manufacturers.
  •  Improve the financial position of the Deposit Money Banks (DMBs).
  •  Increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis.

For more information, visit the site.

N300 BILLION CBN POWER AND AIRLINE INTERVENTION FUND (PAIF)

 The objectives of the Fund are to:

  • Fast-track the development of electric power projects, especially in the identified industrial clusters in the country;
  • Fast-track the development of the aviation sector of the Nigerian economy by improving the terms of credit to Airlines;
  • Improve power supply, generate employment, and enhance the living standard of the citizens through consistent power supply;
  • Provide leverage for additional private sector investments in the power and aviation sectors.

For more information, visit the site.

BOI Intervention Funds Loan Features

i. Loan Amount : Maximum of N1 billion for a single obligor in respect of
refinancing/restructuring
ii. Loans shall have a maximum tenor of 15 years terminating on 31st July, 2025
iii. Working capital facility of one year with provision of roll over for a maximum of 3 years.
iv. The Fund allows for moratorium in the loan repayment schedule.
v. Interest Rate: All-in Interest rate/charge of 7 percent per annum payable on quarterly basis.

How do I apply for BOI intervention funds?

To apply for any of the funds, simply follow the procedure below:

  1. Visit their website at https://www.boi.ng,
  2. Select the most appropriate fund option for your line of business and industry
  3. Click on the option, the scroll to the bottom page
  4. At the bottom, you would find the “click here to apply” option.

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 Products BOI offers?

Asides from managed and matching fund, BOI also offers the following products:

  1. ASM Fund
  2. Bottom of pyramid
  3. Fashion and beauty product
  4. Light manufacturing
  5. Food and Agro commodity processing
  6. Graduate entrepreneurship fund
  7. Nollyfund
  8. On- lending to commercial banks
  9. Solar energy
  10. Youth entrepreneurship support (YES) programme
  11. Youth ignite programme

If you are interested in the BOI Intervention Funds, follow the steps above to apply. Make sure you visit their site to know more about the BOI Intervention Funds.

Anyone can apply for the BOI Intervention Funds online.

 

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