BANK OF INDUSTRY COTTAGE LOAN, HOW TO APPLY.

About the fund

Nigeria is richly endowed with abundant agricultural products available in every state of the federation.

However, limited capacity for processing and preservation, results in huge losses and wastages.

In a bid to tackle this problem, BOI has established a Cottage Agro-Processors Fund to support the establishment of cottage agro processing plants that will produce food products and raw materials for industries within and outside the Staple Crop Processing Zones (SCPZs) across Nigeria.

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

CAP Fund –Products/ Sectors supported

CAP Fund- Products/ sectors supported
S/N	Agric Products	Derivatives
1	Cassava	Cassava Flour, Chips, Starch, Garri, Fufu, Ethanol
2	Oil Palm	Palm Oil, Palm Kernel Oil, Palm Kernel Cake.
3	Rice Paddy	Rice, Flour.
4	Groundnut	Groundnut Oil, Groundnut Cake
5	Yam	Yam Flour, Chips
6	Maize	Corn Flour, Starch, Livestock Feed.
7	Sorghum	Sorghum Flour, Syrup, Sorghum Brewers Grain.
8	Aquaculture	Smoked Fish, Fish Fillet.
9	Livestock	Leather Products, Poultry, Milk, Yoghurt, Butter.
10	Cocoa	Cake, Butter, Powder.
11	Shea nut	Shea Butter For Cosmestics, Confectionary And Pharmaceuticals
12	Plaintain	Flour, Chips
13	Cashew	Cashew Nuts
14	Tomato	Tomato Paste, Tomato Ketchup

Cottage Agro-Processors (CAP) Fund

• 9% Interest rate

• N10 million single obligor limit

• 5 years tenor (Inclusive of 6 months moratorium)

• 1% processing fee (payment at approval)

Parties to the fund

• Bank of Industry

• Partnering Bank

• The customer

• Accredited Equipment Suppliers and Valuers

Bank of Industry

• Provides the long term loan

• Manages the fund

• Equipment procured in BOIs name and revert to the customer upon liquidation

Partnering Bank

• Provides working capital

• Tripartite agreement with BOI and customer to sweep repayments to BOI

The customer

• 10% equity contribution

• Select equipment from BOI accredited suppliers

• 3-year equipment maintenance agreement with the supplier

• Factory constructed for new project and modified for existing project Sign the Tripartite Agreement authorizing the Partnering Bank to sweep loan repayments into BOI’s account based on the Loan Amortization Schedule

Accredited supplier

• Supply, installation and commissioning of the equipment

• 2-year warranty for the equipment

• 3-years equipment maintenance agreement with the customer

• Provide standard factory layout to accommodate the equipment to be supplied

• Provide initial training for the customer on the operation of the equipment

• If supplier is a fabricator, it must have Standards Organization of Nigeria (SON) certificate

Security arrangement

• Debenture over assets of the company or lien over the equipment

• Deposit of 10% equity into designated BOI account

• Personal guarantee of promoters

• Two (2) external guarantors to be backed by notarized net-worth statement acceptable to BOI

• Referral Letter from a recognized Traditional Ruler / Local Government Chairman or LG Secretary/ Imam / Priest

• Domiciliation of sales proceeds with the selected/accredited SME friendly banks. BY AGRONEWS.

EXPORT LOAN, HOW TO ACCESS NEXIM ESF FACILITY.

NEXIM’S PRODUCTS & SERVICES – NEW EXPORT INTERVENTION SCHEMES

As part of efforts to arrest the declining trend in export credits and boost investments in the non-oil export sector, the CBN recently approved two funding schemes and appointed NEXIM as the Fund Manager:

• N500 Billion Export Stimulation Facility (ESF) – Newly Introduced
• Tenor of up to 10 years for project finance facility inclusive of moratorium of 2 years.
• Working Capital / Stocking facility shall be for a maximum tenor of one year with the option of roll-over not exceeding twice
• Maximum interest rate of 7.5% per annum for facilities with a tenor of up to three (3) and (9%) per annum for facilities with tenor of over three (3) years.
• N50 Billion Export Rediscounting & Refinancing Facility (RRF) – Enhancement of existing N1.225 Billion RRF being operated by NEXIM from inception in 1991
  • It is a rediscounting & refinancing window available to Commercial Banks for a maximum tenure of 360 days.
  • Export bills / transactions shall be discounted / refinanced at an “all-in” rate of a maximum of 6% per annum with the Bank allowed a maximum spread of 3%.

ELIGIBILITY CRITERIA

The Bank’s facilities are available to any registered, creditworthy export Company/Cooperative Society, incorporated in Nigeria, registered with the Nigerian Export Promotion Council (NEPC).

REQUIRED DOCUMENTATION

1. Application Form
2. Certified True Copy of Certificate of Incorporation, Certified True copies of CO2 & CO7; and Memorandum & Articles of Association;
3. Current three year tax clearance;
4. Three (3) year Audited Accounts and most recent management accounts, where applicable
5. Feasibility Study/Business Plan including Projected Cash flow, P&L and
6. Board Resolution Authorizing Company to borrow and Letter of Authorization for NEXIM to seek information on Company;
7. Registration with NEPC;
8. Proforma Invoice; Export Contract or MOU and Evidence of past export(s) if any;
9. Valuation Report of the proposed security; BY AGRONEWS.

FG, NDDC MOVE TO REVITALISE ABADONED RICE MEALS.

Ado Ekiti — The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has disclosed that the present administration under President Muhammadu Buhari will stop importation of rice in 2017.

Explaining the reason behind the policy, Ogbeh hinted that the country has enough internal production that can sustain home consumption and meet foreign exchange earnings that can guarantee diversification of the economy.

In order to further boost internal production of the commodity and enhance the country’s comparative advantages in rice and yam production, Ogbeh stated that the federal government will sign a memoranda of understanding with Afe Babalola University, Ado Ekiti (ABUAD) and Ekiti State Government in the two critical sectors.

He unveiled his ministry’s intention to supply ABUAD with 20 tonnes of rice seedlings in the next planting season to boost rice production internally.

The minister said these in Ado Ekiti at the weekend during a visit to ABUAD’s farm and Ekiti State government.

Ogbeh said the current economic recession being experienced under Buhari’s government has helped the federal government to think outside the box and had succeeded in bringing the deserved revolution to agriculture sector .

The minister assured Nigerians that the skyrocketing prices of foods in the country will soon crash, saying specifically that that of rice would happen within the next two weeks.

“Of recent, prices of diesel increased from N130 per litre to about N280 which makes the cost of a tractor to move up to N14 million from N7 million. The interest rate on every loan given to farmers also went up, so the aggregate of all these factors caused increase in the prices of food items.

“We are concerned with the plights of Nigerians. We knew that many are hungry but we are working round it because it doesn’t speak well of us that we are in government and people are hungry.

“But the major challenge is that Nigerians produced children more than other Africa nations put together and youths are not interested in farming and the question now is that, who will feed all these children?

“Nigeria has about 150million population and if these people can’t be fed with food, then they will be fed with anarchy and chaos,” Ogbeh warned.

The founder of ABUAD, Chief Afe Babalola (SAN), praised Buhari’s administration for bringing revolution to the country’s agriculture sector that had been neglected by successive governments, describing the current economic recession as a blessing in disguise.

“To support the federal government initiative, this university for the past three years has been holding the annual Afe Babalola Agriculture Expo (ABAFEX), where we give N1million to the best farmer in Ekiti and N250,000 to the best in 16 local governments.

“This year, we intend to hold rice summit with intention to expose Ekiti potential in the production of the commodity,” Babalola said. BY AGRONEWS.

FG TO PARTNER OSUN FOR MASSIVE FOOD PRODUCTION.

The Federal Government has expressed readiness to partner with Osun State Government in the ongoing process of massive food production as a means of getting the nation out of the current economic recession.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh who stated this when he paid a courtesy call on the Osun State Governor, Ogbeni Rauf Aregbesola in Osogbo disclosed that Nigeria will by December this year stop the importation of rice  due to massive rice production embarked upon by government.

Ogbeh said it is unfortunate that Nigeria is still spending billions of dollars on food importation, thereby calling for maximum collaboration and partnership between and among the various authorities to revamp agriculture.

The minister said the Federal Ministry of Agriculture has been restructured to meet the nation’s needs on food production so as to bring an end to all forms of food importation.

He said the purpose of the visit is to cement the existing relationship between the Osun State Government and the Federal Ministry of Agriculture on the need to achieve a better agricultural productivity.

Ogbeh attributed the current economic recession to the nation’s failure to harness her huge potential in agriculture.

Ogheh said Nigeria has gotten to a stage where her numerous God-given resources must be appropriately harnessed, saying the era of sole reliance on crude oil as a means of sustenance has gone.

The Minister said his ministry has meeting with relevant stakeholders to revamp the agriculture sector, a move which he said would go a long way in rescuing the nation out of poverty and unemployment.

He said the ministry has engaged in an extraordinary initiative to rid off the sector of her current challenges, saying no stone will be left unturned to bail the country out of her present predicament.

According to him, it is high time Nigerians, irrespective of socio-economic status, developed interests in whatever that can be use as alternative to crude oil whose era is almost disappearing. BY AGRONEWS.