BANK OF INDUSTRY NIGERIA
How to apply for a Bank of Industry loan
You may apply for a Bank of Industry loan either online or in person. The BOI has
various regional offices around Nigeria.
When applying for BOI financing, you can expect to complete an extensive
application process. Not every loan will have the same requirements. Requirements
also depend on the size of your business (micro, small or large enterprise) and the
amount of money you are applying for.
Qualifying for a Bank of Industry loan
In order to be eligible for a Bank of Industry loan, your company or enterprise must
be registered with the Corporate Affairs Commission (CAC). Accordingly, you must
have a registration number for a Limited Liability Company or a Business Name.
Businesses in the following sectors are given priority:
• Agro-allied, textiles and leather
• Polymer-based (plastic, wood, rubber, cotton etc.)
• Solid minerals
• Foundries
• Information communication technology (ICT)
A checklist of what you may need includes:
• Completed loan application form
• Certificate of Incorporation
• Memorandum and Articles of Association
• Business plan
• Feasibility study
• Quotation for the supply of equipment and/or machinery
• Quotation for the supply of raw materials
• Means of identification (passport, driving license, permanent voters card)
• Passport photographs and Bank Verification Number (BVN).
• Audited financial accounts
• Company bank statements
• Tax clearance certificate
• Declaration of current liabilities
• Details of the security or collateral offered
• Lease agreement (if operating from a rented property)
Does the Bank of Industry require collateral?
Yes, the Bank of Industry requires that you pledge some assets as collateral.
However, this collateral does not have to be physical property; other forms of
security are accepted including:
• Legal mortgage on a piece of real estate
• Debentures on assets of a company
• Bank guarantee
• External or third party guarantors
• Third party collateral
• Assets previously pledged to other lenders (as long as the BOI’s loan is
adequately covered)
Can the Bank of Industry fund my startup?
Although the bank commonly requires that any prospective borrower has an already
established company, with a track record, at its discretion it does give startup loans.
Where the bank is to fund a startup, it would require a sound business plan and
proof of competence in the given business sector.
What is the Bank of Industry loan term?
Loans disbursed by the BOI have a term length of anything from 12 to 60 months.
Depending on the exact loan term, a moratorium of up to 12 months is also offered.
How long does the Bank of Industry take to approve a loan?
Provided all required documents are in place, the loan processing time usually does
not exceed 30 to 40 working days. More time will be required to process bigger loan
requests.
What type of businesses do the Bank of Industry support?
The BOI supports various product clusters, including but not limited to:
• 3D printing
• Animal feeds
• Aquaculture
• Bakery
• Blocks and interlocking stones
• Bottled water
• Ceramics and tiles
• Chemicals and paints
• Cosmetics and hair products
• Dairy
• Digital printing and multimedia publishing
• Doors and window frames
• E-commerce
• Fashion
• Fish smoking and drying
• Food processing
• Foundries and metal fabrication
• Fruit juice
• Furniture and wood processing
• Gemstones
• Greenhouses
• Grocery packaging
• Healthcare (medical diagnostics)
• Information and communications technology (ICT)
• Laundry and dry cleaning
• Leather
• Light manufacturing (lube blending, paper, paints etc.)
• Liquefied petroleum gas and compressed natural gas
• Meat processing
• Mechatronics
• Movie production (Nollywood)
• Plastics
• Quarries
• Recycling
• Restaurants
• Roofing sheets
• Shoemaking
• Soaps and detergents
• Solar (off grid)
• Technical and vocational schools (offering city and guild certificate)
• Theme parks
• Water transportation
https://www.sukfin.com/knowledge/bank-of-industry/
CREATIVE INDUSTRY FUNDS – TEXTILE & GARMENT
https://futuresoftproject.com/boi/creative/
https://futuresoftproject.com/boi/products/cbn-textile-intervention-fund/
SMEs
We facilitate the growth and development of small and medium enterprises;
through the provision of bespoke lending and business advisory services.
https://www.boi.ng/smes/
In 2021 alone, the SME Directorate obtained approval for 573 customers with
a combined value of N60.79 billion in spite of the COVID-19 Global pandemic
and its negative impact on businesses.
COMMON MISTAKES TO AVOID WHEN APPLYING FOR A BANK OF INDUSTRY
LOAN
The biggest mistake you can make when applying for a Bank of Industry loan is to rush
through the process without making sure you’ve met all the requirements. Rushing through
the application process without gathering the necessary documentation and information
will make the approval process much more difficult and time-consuming. Make sure you
have all the necessary documents and information before completing the application form.
Another common mistake is not being prepared for the approval process. Know the amount
of time the process typically takes and be ready for it. This will make the process go much
more smoothly. Finally, avoid providing false information on your application form.
Providing false information can be a way to get approved for the loan but can come back to
haunt you in the future.
