|PURPOSE/ RATIONALE||· It is an indispensable industry in Nigeria’s economy as far as housing, urban development and Infrastructure development is concerned.
· As a sub-sector of Construction, the industry is a major catalyst of economic growth.
· With predominance of local raw materials, improved living standard and demand for better housing with bespoke finishing in the urban centres; the sub-sector is proving to be a gold mine of sorts in the country and attracting a good number of semi-skilled and professional block moulders.
· This product will provide operators the needed financial assistance to acquire modern equipment for improved output that can compete globally as well as create more jobs.
|The Target market for the supply of blocks and interlocks is the mass estate developers, major construction sites and private residential/office property developers nationwide. This will also include:
Foreign/locally-owned companies with minimum of 51% Nigerian Ownership in its shareholding structure
|PROJECTED IMPACT||A typical small- to medium scale block/interlock making business will create an average of 10 – 20 direct jobs and 50 – 100 indirect jobs, totaling 60 – 120 jobs.
|SINGLE OBLIGOR LIMIT||
|Interest Rate: 9 % per annum.
Fees: 1% Processing Fee for loan less than N50 million.
1% each for Appraisal and Commitment Fees for loan above N50 million
|MORATORIUM||6 – 12 months from date of Loan Disbursement.|
|· Loan up to N50 million: 90% maximum from BOI (including working capital from BOI or the SME-friendly banks).
· Contribution by the promoter – 10% (minimum)
· Loan above N50 million: 80% maximum (including working capital from BOI or the SME-friendly banks).
· Contribution by the promoter – 20% (minimum)
· Existing Business:
· For an existing project, the estimated value of the factory building and/or relevant processing equipment, may be applied against the borrower’s 10 – 20% contribution. The factory building and/or equipment must be valued professionally by any of BOI’s accredited valuers.
· In phases in accordance with agreed milestones and shall be backed by provision of performance bond issued by a commercial bank or a BOI accredited insurance company, on behalf of the BOI accredited equipment supplier, where the supplier demands for advance payment before delivery of the equipment).
· Establishment of Letters of Credit where the plant and machinery are to be imported.
After successful installation and testing of the equipment and payment shall be made directly to raw materials suppliers.
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