|PURPOSE/ RATIONALE||· Some of the notable players in the Nigerian cosmetics and beauty care products include Procter and Gamble, Unilever, PZ Cussons, House of Tara International, Soulmate Industries Ltd, etc. However, there is a need to grow the industry as the nation looks inwards to generate additional revenue from the non-oil sector.
· Nigeria’s cosmetic and beauty care products are largely imported. Imports from foreign countries currently account for 70% of the domestic market leaving Nigerian producers with just a 30% share. An improvement in the ability of local manufacturers to compete against imported products will result in income and employment growth.
· To target the consolidation and expansion of market share in neighbouring West African countries which is under threat due to poor quality products.
· To modernize the production process by providing local producers with access to finance for purchase of modern equipment and working capital.
· Substantial increase in the industry’s employment level
|The product will be available to existing and new Limited Liability Companies and Enterprises engaged in cosmetics and beauty products.|
|SINGLE OBLIGOR LIMIT||Up to N500 million in accordance with BOI SME lending limits.|
|Interest Rate: 9 % per annum.
|· 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)
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. Equity – 10% (minimum) by the promoter(s)
§ In phases in accordance with agreed milestones and shall be backed by provision of performance bond by the accredited equipment suppliers (where the suppliers demand for advance payment before delivery of the equipment).
§ Establishment of Letters of Credit where the plant and machinery are to be imported.
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