What is BOI Manufacturing Loan?
The Bank of Industry (BOI) is a Nigerian development finance institution that was established in 2001. The BOI’s mission is to promote the growth of the Nigerian economy by supporting the development of key industries.
The BOI offers a variety of loan products, including a manufacturing loan that target manufacturers as well as other Original Equipment Manufacturers (OEM’s) in the Nigerian oil and gas industry who are contributors to the Nigerian Content Development Fund to procure :Fixed Assets, Working Capital and Leasing of Industrial and business equipment.
BOI Manufacturing Loan Qualification Requirements
In order to qualify for the Bank of Industry Manufacturing Loan in Nigeria, you must:
1. Be a registered business in Nigeria with a valid TIN
2. Have been in operation for at least 2 years
3. Have a minimum turnover of N20 million per annum
4. Have a minimum post-tax profit of 10% per annum
5. Provide a detailed business plan
Term Loans, Working Capital Finance (Time Loans) and Leasing
Amount – Up to $10million
Equity Contribution – 10% of total project cost
Interest Rate – 8 %
Moratorium – From 6 Months to a maximum of one (1) year moratorium on principal repayment subject to review of company’s cash flows
Tenor – Maximum of five (5) years but tied to the payment tenor of the contract.
- Bank Guarantees from the Eligible Banks as approved by BOI
- Treasury Bills or Federal Government Bonds
BOI Loan Application Checklist
- 1. Provide Formal Application Letter on company Letter Head
- 2. A Certificate of Incorporation/Registration
- 3. A Memorandum and Articles of Association (MEMART)
- 4. A Certified True Copy of Form CAC 2.5 (Allotment of Shares)
- 5. A Certified True Copy of Form CAC 2.3 (Particulars of Directors)
- 6. A Certified True Copy of Form CAC 2.1 (Appointment of Company Secretary)
- 7.A Recent Tax Clearance Certificate of the company
- 8. A Recent Tax Clearance Certificates of two (2) Directors of the company
- 9. A Means of identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card)
- 10. A Feasibility Report/Business plan
- 11. An Evidence of required permits by the Oil and Gas Industry regulators such as DPR, NCDMB and Nigerian Petroleum Exchange(NIPEX) (where applicable) to operate in the oil and gas Industry.
- 12. Evidence of the requisite approval from regulatory bodies for the manufactured goods
- 13. Valid contract from an International Oil Company (IOC)
- 14. Evidence of performance on similar contracts.
- 15. Transaction documents typical of the project to be financed
- 16. Quotation/Proforma Invoice for the supply of the items of Machinery & Equipment
- 17. Sources and Quotations for Raw Materials expressed in quantity and amount
- 18. Evidence of approved Environmental Impact Assessment (EIA) Report on the manufacturing plant
- 19. Recent three (3) years Audited Account of the Company, Institutional Investors or any other Company owned by the Chief Promoter
- 20. Recent Bank Statements of the Company for the past one (1) year
- 21. Curriculum Vitae (CV) of the Directors and Key Management Staff
- 22. Evidence of collateral (e.g. Letter of intent from Commercial Bank for Bank Guarantee, Treasury Bills, etc). The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank.
- 23. Bank of Industry Questionnaire
How do I apply for a BOI manufacturing loan?
The Bank of Industry offers a wide range of loan products for manufacturers in Nigeria. To apply for BOI manufacturing loan please follow procedure below.
1. Applying for a Bank Of Industry Manufacturing Loan in Nigeria is a straightforward process that can be completed online at the Bank of Industry website in just a few minutes.
2. Once you have submitted your application, it will be reviewed by a loan officer and you will be contacted to discuss your eligibility and the next steps.
3. If you are approved for the loan, the funds will be deposited into your account within 5-7 business days.