Entertainment News

BOI Nolly Fund To Boost Your Creative Media Business

The Bank of Industry (BOI), in its bid to salvage other sector s of the economy in order to improve their contributions towards Nigeria’s GDP, has raise various funds targeted SMEs with the aim of expanding their asset-base to enable them carry on projects of larger scale. The film sector of the entertainment industry is not any less, an emerging sector which contributed 1.42% ($7.3 billion or N1.4 trillion) to Nigeria’s Re-based GDP in 2013.

This is the rational behind the Nolly Fund. The Fund is to support film makers/producers by providing the needed financing required to grow the film industry and make bigger impact in the sector. Nollywood now ranked 3rd in the market after Hollywood (America) and Bollywood (India) in terms of number of contents produced.

The Fund will be accessed by Companies engaged in film production. The fund shall be used for film production value chain (i.e. from pre-production to post-production). To support this process and ensure that only commercially viable scripts with good storylines will benefit from the scheme, the Bank has set up a Project Implementation Advisory Group made up of two (2) cinemas management experts, one (1) national film distributor, two (2) production and post-production experts, two (2) film critics/reviewers, two (2) film producers and a Banker.

FUND TERMS

FUND SIZE

The total size of the Nolly Fund is N1.0 billion however a single obligor is limited to a maximum funding of N50.0 million.

The first tranche of the Fund is projected to create a minimum of 2,000 direct and 5,000 indirect jobs for Nigerians engaged in film production value chain.

FUND PRICING
  • 1% Processing fee (full payment at approval)
  • 1% Commitment Fee (full payment on acceptance of loan)
  • Quarterly Monitoring Fee of 0.125% of outstanding Principal
  • Interest rate: 10% per annum payable at the end of every month.
TENOR

Maximum of one year commencing at the end of the moratorium period.

MORATORIUM

Six (6) months (with option for additional (3) three months) from date of loan disbursement.

APPLICATION PROCESS

  1. Customer requests for the facility and if approved an offer is made by BOI to customer based on approved terms and conditions.
  2. Customer accepts the offer and meets all conditions precedent to draw down.
  3. Disbursement is done in phases in accordance with agreed milestones.

WHERE TO SUBMIT REQUESTS

Applications can be submitted at any of the participating banks, however the Bank of industry (BOI), has a number of existing accredited Business Development Service Providers (BDSP) and applying through this Organisations who have been well briefed on all BOI requirements can increases your chances and speed up the application process

Business News

Access Boi Capital Fund For Agricultural Product Processing

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 is establishing a Cottage Agro-Processors (CAP) 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 is targeted at small-and medium-scale industries at the low-technology, labour-intensive end of the spectrum and is expected to finance about 1000 projects at nine percent interest charges, with total management fees of 1%,a tenor of five (5) years with a moratorium of six (6) months. The Fund will also help in creating a total of 20,000 direct and indirect jobs. 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. The products include; Cassava, Oil Palm, Rice Paddy, Groundnut, Yam, Maize, Sorghum, Aquaculture, Livestock, Cocoa, Shea nut, Plantain, Cashew, Tomato and all their individual derivatives.

WHY APPLY FOR BOI CAP FUND?

  • Agriculture is the mainstay of the Nigerian economy
  • The sector enjoys the support of the federal government
  • Create jobs and ensure wealth distribution
  • Single digit interest rate (9%)
  • 5 year loan tenor
  • 6-month moratorium
  • Guaranteed working capital
  • Speedy processing

WHO IS THE FUND FOR?

The fund is designed to benefit Limited Liability Companies, enterprises and Cooperative societies engaged in the processing of Agricultural produce into food products and/or raw materials, either for industry use or for export.

CHECKLIST OF REQUIREMENTS FOR BOI LOAN APPLICATION

  1. Formal Application
  2. Photocopy of Certificate of Registration (Form CAC/BN/A1).
  3. Business Plan
  4. Valuation report on existing assets prepared by an accredited BOI valuer.
  5. Value of equipment to be purchased from a BOI accredited supplier (including invoices).
  6. Source(s) and value of raw materials to be purchased expressed in units.
  7. Two (2) passport photographs of the Promoter (business owner)
  8. Photocopy of the Current Tax Clearance Certificate of the Proprietor.
  9. Means of Identification (i.e. International Passport or Driver’s License or National Identity Card) of the Proprietor.
  10. Bank Statement of the Business Enterprise for six (6) months.
  11. Declaration of Outstanding Liabilities to other Banks and Individuals.
  12. Reference letter from a recognized traditional ruler or authorized Local Government Official.
  13. Provision of a minimum of two (2) External Guarantors to guarantee the loan. The Guarantors must belong to any of the following categories:
    1. Senior Civil Servant (not below the rank of Assistant Director).
    2. Bankers (not below the level of Branch Manager), with minimum of 5 years in service with the Bank (current employer).
    3. Lawyers (SAN).

APPLYING FOR CAP FUND:

The Bank of industry (BOI), understanding the need for entrepreneurship know-how for the agropreneurs mandates that all applicants to the CAP fund must undergo entrepreneurial training at any of the existing accredited Business Development Service Providers (BDSP) and apply through this Organisations who have been well briefed on all BOI requirements in order increases your chances and speed up the application process.

News

Presidency exempts NNPC, PHCN, BoI, 10 others from TSA

The Federal Government has exempted 13 government agencies from the  current Treasury Single Account (TSA) arrangement related to electronic or e-collection  and mop up exercise of government funds from commercial banks.

A circular exempting the  agencies was communicated to Central Bank of  Nigeria (CBN) from the Office of the Accountant-General of the Federation  (OAGF).

The exempted agencies of government are “profit oriented government business entities that pay dividends to the Federal Government of Nigeria.”

The circular addressed  to the Director, Banking and Payments System Department of the CBN, with  FD/LP2015/C/ADC/20/1/ /DF as reference number was dated September 14 this year. It was  signed by M K Dikwa,  for the  Accountant-General of the Federation, Federal Ministry of Finance, Funds  Department, Abuja, FCT.

The exempted agencies are:

Nigeria National Petroleum Corporation (NNPC), Power Holding Company of Nigeria (PHCN),  Bank of Industry (BoI), Nigeria Railway Corporation,  Federal Mortgage Bank of Nigeria, Bank of Agriculture, Niger Delta Power Holding Company/National Integrated Power Project, National Communication Satellite Limited, Galaxy Backbone Ltd and Ajaokuta Steel Company Ltd.

Others are Urban Development Bank, Nigerian Export – Import Bank and Transcorp Hilton Hotel.

The circular titled: Approval to Exempt  Some MDAs in Line with the e-Collection Mop Up Exercise, read: “Approval is hereby granted to your bank (CBN) to exempt the Accounts of  13 MDAs (category six) as listed below the mop-up in line with the e-Collection Circular No. HCFSF/428/S.1/120 dated 7th August 2015 as these are  profit-oriented government business entities that are to pay their dividends into the Treasury Single Accounts whenever they are declared.”

The circular urged the CBN to “note that in line with the Presidential approval,  the following as it relates  to  NNPC as listed above (S/No.9) under Category 4 should also apply:

“That National Petroleum Invetsment Management Services (NAPIMS) remains classified as an MDA that is funded from the  Federation Account under Category 4 of the Circular, being the NNPC business  unit responsible for the management of the Federal Government’s investment in   upstream activities and funded from direct proceeds of oil and gas revenue.

“That NNPC will continue to preserve the status with respect to NAPIMS  Operations Account as well as Escrow Account for Third Party Financing in view  of the Joint Venture (JV) cash funding currently being experienced; and  that all other NNPC’s commercial/business entities as re-classified as ‘Profit Oriented Public Corporations/Business Enterprises’ under Category  6 of the Circular which requires that only dividends from these entities be  paid into the TSA.”

When contacted Mr Ohi Alegbe spokesman for the NNPC said the NNPC will  continue, as it has always done, to remit its accruals into the Federation  Account but that the JV cash-call obligations with its partners  will use commercial banks and not the CBN.

Chinedu Moghalu of NEXIM confirmed that NEXIM has been exempted from  the TSA sheme while Shola Adeyemo of Transcorp Hilton Hotel said the firm is “aware of such a directive.”

An official of BoI who pleaded not to be named said  as a developmental institution, BoI does not fall into that category.

He noted that  BoI manages intervention funds on behalf of the CBN as a result, the BoI  will have to be exempted from the TSA arrangement.

Business News

BoI secures AfDB’s $100m facility for SMEs

The Bank of InAfDBdustry (BOI) has secured a $100 million line of credit from the African Development Bank (AFDB) to actualise its development financing objectives and intervention, especially for Small and Medium Enterprises (SMEs).

According to the bank, the line of credit, which is designed for on-lending to SMEs engaged in export-oriented businesses, is the first of such foreign facility accessed by BOI after its reconstruction in 2001 out of the defunct Nigeria Industrial Development Bank (NIDB).

The bank, in a statement at the weekend, explained that already, the first tranche of $50 million was recently disbursed to BOI from AFDB for on-lending to small businesses engaged in export-oriented businesses with capacity to generate foreign exchange.

BOI added that the credit approval was received as a result of the implementation of various strategies and plans which have enhanced its operations and re-positioned it to better tackle the current challenges of Nigerian small businesses.

“In order to deepen the impact of the facility, BOI hired an international firm, Messrs. BDO/GBRW, based on African Development Bank’s quality selection procedure, to render capacity building services to BOI staff and the prospective SME customers.

“The capacity building services would enhance the business capabilities of the SME customers thereby enabling them to better manage their businesses and mitigate risks. The capacity building would also strengthen the ability of staff members to manage small business loans and the related risk management issues.

“BOI wishes to acknowledge the support of the Federal Ministry of Finance, Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) among other stakeholders for facilitating access to the Line of Credit”, the statement read in part.

The bank however urged prospective entrepreneurs engaged in export-oriented businesses with potential to earn foreign exchange to submit their applications to facilitate access to the facility.

It could be recalled that the bank had within the last one year, embarked on various reforms while unveiling innovative products to address financing gaps in the real sector, with emphasis on small businesses.

Business News

BOI says poor business plan hinders credit to SMEs

The Bank of Industry, BOI has said though the Small and Medium Enterprises, SMEs are backbone to development of many nations funding has remained a challenge to that sub-sector.

The BOI noted that poor business plans have continued to make banks reluctant to give credit SMEs.

The banks managing director, Rasheed Olaoluwa who spoke at the conference of Finance Correspondents of Nigeria, FICAN in Lagos at the weekend also noted that absence of bankable Business Plans and lack of clear Business Models are major challenges hindering credits to SMEs.

Olaoluwa further said that information asymmetry arising from SMEs’ lack of accounting records makes it difficult for creditors and investors to assess the creditworthiness of potential SME proposals.

He observed that finance has been identified in many business surveys as a critical factor for the survival and growth of SMEs in both developing and developed countries.

“Access to finance allows SMEs to undertake productive investments to expand their businesses and to acquire the latest technologies, thus ensuring their competitiveness and that of the nation as a whole.

Poorly functioning financial systems can seriously undermine the macroeconomic fundamentals of a country, resulting in lower growth in income and employment” he added.

The MD noted that despite their dominant numbers and importance in job creation, SMEs traditionally have faced difficulty in obtaining formal credit or equity.

He said “For example, maturities of commercial bank loans extended to SMEs are often limited to a period far too short to pay off any sizeable investment.

This is due to the short term nature of their funds, with the attendant mismatch if granted as long-term facilities to SMEs.

Meanwhile, the tendency is for access to competitive interest rates to be reserved only for prime customers, while loan interest rates offered to SMEs remain high”.

Entertainment News

BoI’s intervention to creative industry hits N2b under Nollyfund

With seven projects presently accessing its facilities and another 10 at different stages of loan approval, the Bank of Industry (BOI) has unveiled plans to facilitate access of members of Nigerian Creative Industry to its facilities, as intervention to the sector hits N2 billion.

Speaking during a visit to the set of a film by Kunle Afolayan at the weekend, the Managing Director, BoI, Rasheed Olaoluwa, explained that the bank has restructured its operations to improve access to its services, adding that the peculiarity of each sector is being considered for loan disbursements.

According to him, the bank has relaxed its criteria to aid access to the facilities adding that viable distribution channels are equally being financed to aid loan repayment as well as mitigate default by stakeholders.

He added that the bank, in line with its mandate had developed a special product tagged “BoI NollyFund” under which Nigeria’s leading movie producers will receive financial support to produce international quality films and screen them through various platforms of movie distribution available both in Nigeria and internationally.

He said: “To support this process and ensure that only commercially viable scripts with good story-lines benefit from the scheme, the Bank did set up a NollyFund Implementation Advisory Group to advise the institution on loan approval to the creative industry.

“The Group’s mandate is to critically review all the film scripts and associated budgets submitted to BoI by movie producers and make technical recommendations to BoI management for final credit appraisal and subsequent approval in line with the Bank’s credit policy.

“The visit to Kunle Afolayan’s set for the production of his new movie, ‘The C.E.O’, is part of the bank’s activities in assessing the utilisation of the facility approved for a project. It is the same way when we visit factories to see how funds were utilised.

“NollyFund had an initial programme limit of N1.0billion and a single obligor limit of N50million for individual loans. However, over N2 billion has been accessed so far by the industry. Kunle Afolayan is the first person to access the fund, while others are underway”.

On his part, Movie Producer, Kunle Afolayan commended the bank for improving access to the facility, noting that the project wouldn’t have started without funding from the bank.

“The BoI initiative for the creative industry should be encouraged. We had applied for facility some few back but we got denied. With the restructuring of the loan processes, we have been able to access the funds easily, while the innovative approach to financing by the bank is highly commendable”, he added.

News

BOI Secures CBN License, Repositions for Service

The Bank of Industry (BOI) has secured Central Bank of Nigeria’s (CBN) license, having met the requirements set by the apex bank for all existing Development Finance Institutions (DFIs) in the A statement from bank explained that the CBN has approved its application for the issuance of the required license, in line with the CBN guidelines that “all existing DFIs whether established directly by an Act of the National Assembly, incorporated under Companies and Allied Matters Act (CAMA) or any other law shall be required to obtain license from the CBN.”

Similarly, the bank noted that as part of its plans to drive industrialization in the country, it has embarked on strategic and tactical initiatives to re-position its operations.

“BOI wishes to reiterate our readiness to continue to provide financial support to SMEs and Large Enterprises with good business propositions.
The Bank will also continue to provide business support and capacity building for SMEs.

“We have in recent times taken bold steps, both strategic and tactical, to re-position the Bank among which are the formulation of Strategic Plan 2015-2019; institutionalization of corporate governance structures; implementation of enterprise wide risk management and compliance systems; and introduction of mobile and digital platforms for interfacing with Nigerian SMEs, thus improving our efficiency.

“We have also Introduced cluster specific SME products for Agro-processing, Nollywood, Fashion business, and others; we also expanded our branch network from seven to 14 offices to bring our services closers to our customers; our operations have also been certified as we recently secured the ISO 9001:2008 Quality Management Systems (QMS) Certification as well as secured good credit ratings from Agusto & Co (A-) and Fitch Ratings (BB-).

Business News

Accessing BOI’s Agric Processing Fund

Agriculture is the mainstay of the Nigerian economy, with agricultural produce abounding in every state of the federation, but with limited capacity for processing and preservation, resulting in huge losses and wastages. This prompted the Bank of Industry (B0I) to establish the Cottage Agro-Processing (CAP) Fund to support the establishment of cottage agro-processing plants to produce food products and raw materials for industries within and outside the Staple Crop Processing Zones (SCPZs) Bio agric processing fund

The Fund ensures that anticipated risks are dimensioned and mitigated by its transaction structure. It enhances goodwill by supporting agricultural production and rural development and create employment.

Objective

Mr. Rasheed Olaoluwa, Managing Director of BOI, said at the launching of the N5 billion CAP Fund in September 2014 that the bank plans to finance about 1,000 projects under this fund. “It is targeted at Small and Medium Industries at the low-technology, labour intensive end of the agro-processing spectrum.

And inclusive growth is our primary consideration. The fund is designed to enable BoI, being Nigeria’s leading development finance institution, play its catalytic role of paving the way for other financial institutions to follow,” he said.

Olaoluwa added that the the fund will provide loans to beneficiaries to establish small-scale plants or mini mills to process Nigeria’s agricultural products. His words: “The Cottage Agro Processing (CAP) fund will provide loans to beneficiaries to establish small scale plants or mini mills to process Nigeria’ s agricultural products such as cassava , oil palm, paddy rice, groundnut, yam, maize, cocoa, sheanut ,plantain, cashew, hides and skin, meat, chicken and fish. These products are grown all over the country and have been selected to ensure an even distribution across Nigeria’s 36 states.”

Target market

Those that can access the Fund are 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. The products include: Cassava, Oil Palm, Rice Paddy, Groundnut, Yam, Maize, Sorghum, Aquaculture, Livestock, Cocoa, Shea nut, Plantain, Cashew, Tomato and all their derivatives.

Projected impact

The fund is being deployed for the supply and installation of equipment for an estimated 1,000 cottage mills across the country, a minimum number of 20-30 mills per state, including the Federal Capital Territory (FCT). Projects are to be located in the areas with comparative advantages in terms of the available agricultural raw materials within each state. This is expected to create a minimum of 20,000 jobs for Nigerians – 5,000 direct and 15,000 indirect jobs.

The CAP fund provides agro-processors with access to finance and technology to convert  agricultural products to economic prosperity. The fund is disbursed at a single digit interest rate (9 percent); 5 year loan tenor; 6-month moratorium; Guaranteed working capital and; Speedy processing.

Procedure

Customers must meet all conditions precedent to draw down, including deposit of 20 per cent equity contribution into designated account. BOI disburses the 70 percent loan in tranches direct to approved contractors and suppliers in line with agreed milestones. Upon completion, MSME-friendly partner bank provides 10 percent working capital. Customer is responsible for running of the plant and full repayment.

Requirements

The first phase of the scheme is to facilitate the processing of the top three (3) major crops in each state of the federation and the FCT. BOI Zonal Offices will market the product program as well as focus on agricultural products and their derivatives on the basis of comparative advantages and in alignment with the SCPZ nearest to them. The Zonal Offices will also identify the producers of each of derivative items within their jurisdiction in building effective deal flow.

Access to market

As part of the requirements, each applicant is to provide the following: Identification of the basic agricultural raw material(s) to be used, the location where the raw materials will be sourced from and the annual volume available in that location.

Parties to the Fund

BOI – To provides the long-term loan and manage the scheme. Where it becomes absolutely necessary for BOI to provide working capital, it shall be done on case-by-case basis and the partnering commercial bank shall be carried along. Partnering bank – To provide working capital for the customer.  The partnering bank shall sign a Tripartite Agreement with BOI and the customer to sweep loan repayments to BOI’s account based on the Loan Amortisation Schedule.

Customer – To provide 20 percent equity contribution, operate and manage the project from the point of disbursement through operation of the plant and ultimate repayment of the loan. Accredited supplier – To be responsible for the supply, installation and commissioning of the equipment. The supplier is to provide a 2-year warranty for the equipment, execute a 3-year Equipment Maintenance Agreement with the customer and provide a standard factory layout plan that will accommodate the equipment to be supplied

News Technology

BOI Charges Textile Producers to Focus on Technology Acquisition

Bank of Industry, Mr. Rasheed Olaoluwa has said that for the nation’s textile producers to remain competitive, they must leverage on the emerging technology in the sector. Olaoluwa, who spoke during the Annual National Education Conference in Kaduna, noted that the adoption of new technology would not only help textile producers in cutting the cost of production, it would also make their products competitive in the global market. The forum, which has as its theme: “Buhari Administration: Revival of Textile Industry and Creation of Decent Jobs”, was organised by the National Union of Textile, Garment and Tailoring Workers of Nigeria(NUTGTWN) and Nigeria Textile, Garment and Tailoring Employers’ Association. The conference brought together various stakeholders to deliberate on the state of the textile sector with a view to addressing some of the constraints that have held it down from realizing its potential in employment generation and capital flow. National Mirror investigation, has however, revealed that while over 121,100 jobs have been lost as a result of inactivity in the sector, only 39 out of the 143 textile mills across the country currently in operation.

However, beyond the issue of finance and smuggling, the BOI boss stated that it was imperative for the operators in the sector to be innovative, adding that textile business had gone digital. He stated, “The textile union education conference is very timely in the sense that, as you are aware, the President, Mohammadu Buhari has been quite emphatic on the need for Nigeria to revive the textile sector. “Some of the issues that have come out today has to do with how to deal with the issue of smuggling. It is an issue government needs to deal with firmly, especially with the Nigeria Customs Service. What also came out clear is the need for the textile industry to also be up and doing in term of embracing new technology. “Textile industry globally has gone digital and for us to be competitive, we need to invest in new technology and ensure that textile industry is able to do cost effective short-run. New technology we enable textile producers to come up with product sample very quickly, come out with new designs just by operating the computer. “There is a lot of computer aided designs that have gone into textile printing today. That is the challenge to the industry.”

Business News

BOI Provides Funding For Ikorodu Entrepreneurs

Stakeholders in Ikorodu commercial and industrial sector, especially the Small and Medium Enterprises, are set to benefit from funding opportunities provided by the Bank of Industry. According to a statement from the Ikorodu Chamber of Commerce and Industry, the opportunities are to be unveiled at the 7th Business Luncheon of the ICCI.

The statement added that the Managing Director of the Bank of Industry, Mr. Rasheed Olaoluwa, who is the guest speaker, will address the role of BoI in the development of Nigeria’s industrial sector with emphasis on the current dispensation. It quoted the President of the Chamber, Prince Jamiu Saka, as saying that the Nigerian business terrain expected positive change in the country’s economy.

He said, “At the forum, the Bank of Industry will apprise entrepreneurs of the window of funding opportunities that are available in the current dispensation, especially to our members.
”The Business Luncheon of Ikorodu Chamber of Commerce and Industry is held quarterly to discuss problems facing SMEs and generate ideas that could promote their growth in various business areas.

The Chamber was incorporated in 2011.

Business News

BoI partners with Grow Africa on $60m venture capital fund for SMEs

The Bank of Industry (BoI) has partnered Grow Africa Equity Partners Limited to raise a $60 million Venture Capital Fund for small businesses, as part of its innovative financing scheme and efforts to expand intervention in the industrial sector from loan disbursements. Under the arrangement, the bank has made an investment commitment of $6 million to aid provision of equity capital for fast growing businesses.

Indeed, the Venture Capital Fund aims to provide equity capital, along with strategic and operational support to early stage and fast growing businesses involved in technology, agriculture, consumer goods and services sectors. BoI’s Managing Director, Rasheed Olaoluwa in a statement at the weekend, said: “Nigerian businesses cannot be built on debt alone. It has long been part of the bank’s vision to find ways to provide sorely needed equity capital and business advice to promising Nigerian businesses. “Our partnership with Grow Africa is one of the avenues for realising this vision and we remain committed to the pursuit of our core mandate of providing long-term financial support to small, medium and large companies/projects in Nigeria’s key sectors.”

Olaoluwa added that the investment commitment was informed by the track record of Grow Africa’s partners, the developmental impact of their existing portfolio and their strong pipeline for potential new investments. The Chairman of Grow Africa Equity Partners, Adedotun Sulaiman, noted that with the right type of support, Nigerian businesses could become global leaders. Sulaiman, who also chairs the Boards of Interswitch, SecureID, IDEA, New Horizons and others, said: “Over the past 10 years, I have provided capital and advice that have helped several businesses grow from ideas into multi-billion naira industrial leaders. “Through this partnership, I hope to see many more entrepreneurs realise their dreams of creating leading companies and delivering massive value to Nigeria.”

The Managing Director of the company, Afam Edozie, added: “We are extremely pleased with this partnership with BoI, and this is a strong signal of the bank’s commitment to supporting indigenous Fund Managers to catalyse growth and sustainable development in Nigeria. “This new investment will increase development impact and socio-economic benefits through the creation of additional jobs, development of local entrepreneurship and will create additional fiscal revenue to Government. “The Bank of Industry has demonstrated that they share our dedication and passion in helping to build world class industries in Nigeria”. The Bank of Industry is Nigeria’s leading industrial development financing company, with a loan portfolio of N592 billion to projects in Nigeria’s real sectors- agro-processing, solid minerals, gas and petrochemicals, as well as engineering and technology. Similarly, it supports SMEs through a network of 14 offices across Nigeria and 122 business development services providers.

Business News

N1b Fund: ATFAD urges BoI to target real industry operators

Garment makers in Aba, the commercial hub of Abia State have appealed to the Bank of Industry (BOI) to ensure that industry operators’, especially those outside Lagos, benefit from the proposed “N1 billion Fashion Fund” targeted at small and medium enterprises.

The group on the aegis of the Association of Tailors and Fashion Designers (ATFAD), an umbrella body of tailors and fashion designers in Abia, observed that if well implemented that the fund, would boost activities in the sector, create jobs and increase the gross domestic product (GDP) of the country.

Onyebuchi Nwaigwe, president AFFAD, commended the BOI for initiating the programme, but expressed doubts over implementation, stressing that similar funds targeted at the MSMEs in the past, often does not get to them.

The  N1 billion Fashion Fund for players at the micro-, small- and medium-scale levels according to Rasheed Olaoluwa, managing director/chief executive officer, BOI,  is in fulfilment of the bank’s commitment to develop special funds and credit products to deepen penetration of and enhance support to specific SME clusters.

The BoI Chief Executive Officer, explained that many Nigerian fashion designers have received training in some of the best fashion schools in the world, and therefore have the intellect, talent, creativity, skills and drive to take Nigeria’s fashion industry to the next level on the global fashion stage.

He said the growth in Nigeria’s urban population, the macro-economic environment, increasing purchasing power of the emerging middle class and a strong appetite for consumer goods are positive factors in favour of a flourishing fashion cluster.

He explained that fashion provides an important opportunity to diversify Nigeria’s economy and create jobs, particularly among the youth, expressing confidence  that the Fund will help to catalyse the fashion cluster, create millions of jobs and also generate foreign exchange earnings for  businesses and economy.

He disclosed that the bank has identified 34 SME clusters nationwide through which it will drive its new SME financing paradigm.

“At the Bank of Industry, we have resolved to strategically approach the issue of SME financing using the cluster approach, which has been successfully implemented in many fast-growing economies in the world. India is a very good example, where hundreds of SME clusters have been identified and developed,” he explained.

He further revealed that in the months ahead, more funds and products would be designed and launched to support the various SME clusters already identified.