Boi Intervention Funds – What You Should Know And How To Apply

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Sirmike Sunday, 6 October 2024, 10:22 am

Boi Intervention Funds – What You Should Know And How To Apply

The Bank of Industry (BOI) Intervention Funds are a set of financial products designed to support the growth and development of specific sectors of the Nigerian economy. These funds are targeted at small and medium-sized enterprises (SMEs) and other businesses that are considered to have high growth potential.

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The BOI Intervention Funds are managed by the Bank of Industry, which is a government-owned development finance institution (DFI). The DFI was established in 1964 with the mandate to promote industrial development in Nigeria.

The BOI Intervention Funds are made available through a variety of channels, including:

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Direct lending: The BOI can provide direct loans to eligible businesses.
On-lending: The BOI can provide loans to commercial banks, which can then on-lend the funds to eligible businesses.
Guarantees: The BOI can provide guarantees to commercial banks, which can then lend more money to eligible businesses.
Equity investment: The BOI can invest equity in eligible businesses.

The BOI Intervention Funds are available for a wide range of purposes, including:

Working capital: This is money that can be used to cover the day-to-day expenses of a business, such as salaries, rent, and utilities.
Capital expenditure: This is money that can be used to purchase fixed assets, such as land, buildings, and equipment.
Business expansion: This is money that can be used to expand a business’s operations, such as by opening new branches or hiring more staff.
Export promotion: This is money that can be used to help businesses export their products or services.
Research and development: This is money that can be used to fund research and development activities that can help businesses improve their products or services.

The BOI Intervention Funds are subject to certain eligibility criteria, which vary depending on the specific fund. However, in general, businesses that are eligible for BOI Intervention Funds must be:

Nigerian-owned and controlled
Small or medium-sized enterprises
Operating in a sector that is supported by the BOI Intervention Funds
Have a sound business plan
Have a good track record of financial management

The BOI Intervention Funds can provide a valuable source of financing for businesses that are looking to grow and develop. However, it is important to note that these funds are not a substitute for traditional sources of financing, such as bank loans or equity investment. Businesses should carefully consider their financial needs and options before applying for BOI Intervention Funds.

Here are some of the specific BOI Intervention Funds:

Nigerian Content Intervention Fund (NCI Fund): This fund is designed to support the growth and development of indigenous businesses in the oil and gas industry.
Solar Energy Fund: This fund is designed to support the adoption of solar energy solutions in Nigeria.
BRAVE Women Project: This fund is designed to support women-owned businesses in Nigeria.
On-Lending to SMEs through Commercial Banks: This program provides loans to commercial banks, which can then on-lend the funds to eligible SMEs.

For more information on the BOI Intervention Funds, please visit the BOI website: at https://www.boi.ng/.

What are the objectives of the BOI intervention funds?

The Bank of Industry (BOI) intervention funds have various objectives, depending on the specific fund. Some of the common objectives include:

To increase indigenous participation in the economy: This includes providing loans and other financial assistance to local businesses, as well as supporting programs that help to develop local skills and expertise.
To promote job creation: The BOI intervention funds often target small and medium-sized enterprises (SMEs), which are considered to be major job creators. By providing loans and other assistance to these businesses, the BOI hopes to stimulate economic growth and create new jobs.
To support specific sectors of the economy: The BOI may also target specific sectors of the economy with its intervention funds. For example, the Nigerian Content Intervention Fund (NCI Fund) is designed to support the development of local businesses in the oil and gas sector.
To provide countercyclical support: During economic downturns, the BOI may use its intervention funds to provide support to businesses that are struggling. This can help to prevent job losses and keep the economy afloat.

Overall, the BOI intervention funds are designed to support the development of the Nigerian economy and improve the lives of its citizens. By providing loans, technical assistance, and other forms of support, the BOI hopes to help businesses grow, create jobs, and boost economic growth.

Here are some specific examples of BOI intervention funds and their objectives:

The Nigerian Content Intervention Fund (NCI Fund): This fund is designed to support the development of local businesses in the oil and gas sector. The NCI Fund provides loans, equity, and guarantees to Nigerian companies that are involved in oil and gas projects. The fund also provides technical assistance and training to help local businesses build their capacity.
The MSME Development Fund: This fund provides loans and other financial assistance to small and medium-sized enterprises (SMEs) in Nigeria. The MSME Development Fund targets businesses in all sectors of the economy, but it has a particular focus on businesses that are owned and operated by women and young people.
The Power and Airline Intervention Fund (PAIF): This fund was established to provide financial assistance to businesses in the power and aviation sectors. The PAIF provides loans, guarantees, and other forms of financial support to companies that are involved in power generation, transmission, and distribution, as well as airlines.

These are just a few examples of the many BOI intervention funds that are available. The BOI regularly reviews its intervention funds and adjusts them as needed to reflect the changing needs of the Nigerian economy.

FGN special intervention fund for MSME (NEDEP):

The FGN Special Intervention Fund for MSMEs (NEDEP) is a Federal Government of Nigeria initiative to provide subsidized loans to Micro, Small and Medium Enterprises (MSMEs) in the country. The fund was established in 2015 with a total of ₦100 billion ($260 million) and is managed by the Bank of Industry (BOI).

The NEDEP loan scheme is targeted at MSMEs that are engaged in manufacturing and agro-processing. The loans are available for a maximum of ₦20 million ($52,000) at an interest rate of 9% per annum. The repayment period is up to 7 years, with a grace period of 1 year.

To be eligible for a NEDEP loan, an MSME must meet the following criteria:

Be registered with the Corporate Affairs Commission (CAC)
Have been in operation for at least 2 years
Have a minimum turnover of ₦10 million ($26,000) per annum
Provide collateral in the form of land, property, or equipment

The NEDEP loan scheme is a valuable source of funding for MSMEs in Nigeria. The subsidized interest rate and long repayment period make it an attractive option for businesses that are looking to expand or grow their operations.

Here are some of the benefits of applying for the FGN Special Intervention Fund for MSMEs (NEDEP):

Access to subsidized loans with an interest rate of 9% per annum
Long repayment period of up to 7 years, with a grace period of 1 year
Opportunity to grow or expand your business
Improve your business’s financial performance
Create jobs and contribute to the economic development of Nigeria

If you are an MSME that is interested in applying for the NEDEP loan scheme, you can visit the BOI website for more information and to download the application form.

What other products does BOI offer?

The Bank of Industry (BOI) offers a wide range of products and services to its customers, including:

Loans: BOI offers loans to businesses of all sizes in a variety of sectors, including agriculture, manufacturing, technology, and healthcare. Loans are available for working capital, equipment purchases, and other business needs.
Guarantees: BOI can provide guarantees to businesses that are seeking loans from other financial institutions. This can help businesses to obtain financing that they would not otherwise be able to get.
Investments: BOI can invest in businesses that are in the early stages of development. This can help businesses to grow and create jobs.
Advisory services: BOI offers a variety of advisory services to businesses, such as help with business planning, financial analysis, and marketing.
SME Mobile App: The SME Mobile App is a free app that provides businesses with access to a variety of BOI services, such as loan applications, account information, and market research.
SME Accounting Application (SAAPP) Software: SAAPP is a software application that helps businesses to track their finances. It can be used to generate financial statements, track expenses, and manage inventory.
Online Loan Application Portal: The Online Loan Application Portal allows businesses to apply for loans from BOI online. This is a convenient and secure way to apply for financing.
Loan Application Tracking System: The Loan Application Tracking System allows businesses to track the status of their loan applications. This can help businesses to stay informed about the progress of their applications and to identify any potential delays.
SME Customer Portal: The SME Customer Portal is a secure website that allows businesses to access their BOI accounts and to view their financial information.

In addition to these products and services, BOI also offers a variety of training and development programs for businesses. These programs can help businesses to improve their management skills, develop new products and services, and expand into new markets.

Overall, BOI offers a wide range of products and services to businesses of all sizes. These products and services can help businesses to grow and succeed.

How do I apply for BOI intervention fund?

You can apply for the BOI intervention fund by visiting the BOI website and submitting an online application form. You will need to provide the following information: your company’s name, address, and contact information; the amount of loan you are requesting; the purpose of the loan; and your business plan.

Conclusion:

Overall, applying for the BOI intervention fund is a straightforward process that requires careful attention to detail. By providing all the necessary information and ensuring that your business plan aligns with the fund’s objectives, you increase your chances of receiving the financial support needed to grow and expand your business. Don’t hesitate to reach out to BOI for any clarification or assistance during the application process.

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