Intervention Funds

The Government has made available several Funds to support the growth of SMEs in Nigeria and we are positioned to enable your business access these funds for business expansion purposes. They are:

MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT FUND (MSMEDF)

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

DISBURSEMENT: The funds to 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

BOI MSME LOAN

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

AGRI-BUSINESS SMALL AND MEDIUM ENTERPRISES INVESTMENT SCHEME (AGSMEIS)

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

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