Nigeria is largely blessed with so much agricultural products available in all states of the country.

However, the limited capacity for processing and conservation results in large losses and waste.

HOW TO APPLY FOR THE BANK OF INDUSTRY COTTAGE LOANIn an attempt to address this problem, BOI has established a Cottage Agroprocessor Fund to support the establishment of agricultural processing plants that will produce food products and raw materials for industries within and outside the Basic Cropping Processing Zones (SCPZ). in Nigeria.

The Fund will be accessed by Limited Liability Companies, Companies and Cooperative Societies dedicated to the processing of agricultural products either in finished food products or raw materials for the industry or for the export market.

CAP Fund – Products / Sectors supported

CAP Fund- Supported products / sectors
Y / N Derivatives of agricultural products
1 Cassava Yucca Flour, Potatoes, Starch, Garri, Fufu, Ethanol
2 Oil Palm Palm Oil, Palm Palm Oil, Palm Kernel Cake.
3 rice with rice husk, flour.
4 peanut peanut oil, peanut cake
5 Yam Yam Flour, Chips
6 Corn flour, starch, feed for livestock.
7 Sorghum Sorghum Flour, Syrup, Sorghum Brewers Grains.
8 Smoked fish from aquaculture, fish fillet.
9 products of cattle leather, poultry, milk, yogurt, butter.
10 cocoa cake, butter, powder.
11 Shea Butter Shea Butter for Cosmetics, Confectionery and Pharmaceutical Products
12 Plaintain Flour, Chips
13 cashew nuts
14 Tomato Paste Tomato, Ketchup Tomato

Cottage Agro-Processors (CAP) Fund

9% interest rate
Single debtor limit of N10 million
Tenor of 5 years (includes a moratorium of 6 months)
1% processing fee (payment on approval)

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Parties to the Cottage Fund

  1. Bank of Industry
  2. Associated Bank
  3. The client
  4. Suppliers and appraisers of accredited equipment

Bank of Industry

  1. Provide long-term loan
  2. Manage the fund
  3. Equipment purchased on behalf of BOI and revert to the client at the time of settlement

Associated Bank

  1. Provides working capital
  2. Tripartite agreement with BOI and the client to sweep the repayments to BOI

The clients

  • 10% capital contribution
  • Select teams from BOI accredited suppliers
  • Equipment maintenance agreement for 3 years with the supplier
  • Factory built for a new project and modified for the existing project Sign the Tripartite Agreement that authorizes the Associated Bank to transfer the repayments of the loans to the BOI account in accordance with the Loan Amortization Schedule.

Accredited provider

  • Supply, installation and commissioning of the equipment
  • 2 years warranty for the equipment
  • Equipment maintenance agreement for 3 years with the customer
  • Provide standard factory design to accommodate the equipment that will be supplied
  • Provide initial training for the client on the operation of the equipment
  • If the supplier is a manufacturer, you must have the Certificate of Nigeria Standards Organization (SON)

Security provision

  • Debenture on company assets or encumbrance on the equipment
  • Deposit of 10% of the capital in the designated BOI account
  • Personal guarantee of the promoters
  • Two (2) external guarantors supported by an acceptable notarial declaration for BOI
  • Letter of recommendation from a recognized traditional ruler / local government president or LG / iman / priest secretary
  • Domiciliation of sales income with selected / accredited banks for SMEs.

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