OBJECTIVE: To channel low interest funds to MSME sub sector of the Nigerian economy through participating financial institutions

DISBURSEMENT: The funds shall be disbursed in the form of wholesale funding to participating financial institutions in the following ratio;

• 60% of the fund to women
• 40% of the fund to ‘’Others’’

ELIGIBLE ENTERPRISES: Small and Medium Enterprises (SMEs)

ELIGIBLE ACTIVITIES: Productive sectors of the economy as itemised below;

• Manufacturing
• Agricultural value chain activities
• Educational Institutions
• Renewable Energy/energy efficient product and technologies

PROHIBITIONS:

• Refinancing under the program is prohibited.
• Trading facilities is not allowed to ensure only productive sectors of the economy continue to attract more financing necessary for employment creation and diversification of the country’s economic base.
• Commercial banks shall not be used by state government to disburse funds to end users under this fund.

LOAN FEATURES:

Loan maximum per Obligor: N50 million
Minimum Loan Amount: N5 million
Interest Rate: 9% p.a
Maximum Tenor: 5 Years
Loan Structure: Term Loan
Moratorium: The option of having a moratorium is available (limited to construction and installation cases based on industry standards but subject to a maximum of 12 months for procurement, construction and installation).
Collateral: Loan must be adequately secured
Repayment: Source Loan repayment shall primarily be from but not limited to proceeds of business operations

Objective: The partnership is aimed at providing support for entrepreneurs in Nigeria for economic and financial development.

Fund Component

• BOI Long Term loan (Max. 70% of the total project cost)
• DMB Working Capital (Max. 10% of the total project cost as Working Capital
• Owner(s) Equity (Min. 20% of the total project cost)

Target Market

• Agro-processing
• Solid Minerals
• Chemicals Processing
• Other value added projects approved and funded by BOI

LOAN FEATURES :
Loan Amount: Subject to Max. 70% of project cost
Interest Rate: 9-10% p.a.
Moratorium: 6-12 Months
Tenor: 3-5 Years

The CBN has set up an Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) initiative to support and complement the Federal Governments’ efforts at promoting Agri-businesses/Small and Medium Enterprises as a vehicle for sustainable economic development and employment generation. The scheme is based on the fund from banks. Banks set aside 5% of their annual profit for this fund.

Objectives of the Scheme

• Improve access to affordable and sustainable finance by Agri-businesses, Micro, Small and Medium Enterprises (MSMEs).
• Create employment opportunities in Nigeria.
• Boost the managerial capacity of agri-businesses and MSMEs to grow the enterprises into large corporate organizations in line with Federal Government’s agenda to develop the real sector and promote inclusive growth.

Target Market:

The AGSMEIS fund is targeted at agribusinesses and SMEs in the following sectors:

• Agric businesses – production, input supply, storage, processing, logistics and marketing
• Education
• Health
• Services
• ICT
• Manufacturing
• Mining
• Creative industry – fashion, design, crafts, entertainment, etc
• Petrochemicals

LOAN FEATURES:

Loan Amount: Up to N10million
No. of Years: Maximum of 7years (84months) depending on type of Loan
Moratorium: 6 - 12 months
Interest Rate: 5% per Annum