BOI Unveils N200 Billion Funding Packages for Businesses and Manufacturers in Nigeria

The Bank of Industry (BOI) has announced three funding categories worth N200 billion to support businesses and manufacturers across the country. The funds are sourced from the FGN MSME Intervention Fund, the FGN Manufacturing Sector Fund, and the Presidential Conditional Grant Scheme.

The BOI said in a statement that the Presidential Conditional Grant Scheme is a N50 billion fund that will benefit owners of nano businesses, especially women and youths. The scheme will cover at least 1,000 beneficiaries in each of the 774 local government areas and the six council areas in the federal capital.

The statement said, “The target nano businesses include: traders, food vendors, ICT businesses, transporters, artisans, creatives, among others. This is the grant component of the initiative, as beneficiaries are not required to pay back.
“To be eligible, beneficiaries must own a nano business and, be willing to register a business name as their business grows, and be willing to engage at least one additional staff member if the business turnover increases.
“They must also be willing to provide proof of residential/business address in their Local Government Area, and provide relevant personal and bank account information, including but not limited to Bank Verification Number and National Identification Number for verification of identity. The beneficiary must meet the application submission deadline for the scheme.”

The FGN MSME Intervention Fund is a N75 billion fund that will cater to the needs of Micro, Small and Medium Enterprises in Nigeria. The BOI said that the fund will help eligible MSMEs to cope with the high costs of production, marketing, and distribution, which are mainly due to inadequate infrastructure and other challenges facing MSMEs.

The fund will be disbursed at an interest rate of nine percent all-inclusive per annum, with a tenor of years for working capital and equipment, and a maximum of N1 million per beneficiary.

The FGN Manufacturing Sector Fund is a N75 billion fund that will assist qualified manufacturing firms to overcome the high and rising costs of production, marketing, and distribution, which are caused by insufficient infrastructure and other factors affecting the manufacturing sector in Nigeria.

The fund will be disbursed at an interest rate of nine percent all-inclusive per annum, with a tenor of five years for term loans and one year for working capital, and a maximum of N1 billion per beneficiary.