23, Marina, Lagos, Nigeria
+(234) 7002255264

Light Manufacturing


Light manufacturing is a section of an economy’s secondary industry characterized by less capital-intensive and more labor-intensive operations. Products made by an economy’s light industry tend to be targeted toward end consumers rather than other businesses; it is the production of small consumer goods.

The facilities typically have less environmental impact and are usually less capital-intensive than heavy industry.


Nigeria’s manufacturing sector is the largest in Africa and considered the ideal industry to drive Nigeria’s development due to the labor-intensive, export-focused nature of the business.

The objective is to provide support for asset and utility acquisition for light manufacturing operations.

TARGET MARKET             

Duly registered Limited Liability Companies or Enterprises engaged in light manufacturing activities, which include;

  • Blocks & Interlocking Stones
  • Ceramics & Tiles
  • Chemicals and Paints
  • Cosmetics/Hair Products
  • Plastics
  • Recycling
  • Roofing Sheets
  • Soaps and Detergents
  • Lube Blending
  • Digital Printing/Multimedia Publishing
  • Doors and Window Frames
  • Furniture/Wood Processing


The fund shall be deployed for the provision of equipment and working capital loans to local companies engaged in light manufacturing across the country.


Both Term Loan & Working Capital should not exceed N200 million


To finance the acquisition of production/processing equipment, utilities (generators, transformers, forklifts etc.) and working capital.


Interest Rate: 9% per annum

Fees: 1% processing fee (full payment at approval)


  • Term Loan: 3 – 5 years
  • Working Capital: Structured working capital for up to 3 years


  • Up to 12 months (from date of loan disbursement)

*Subject to project implementation timelines as it relates to ordering/delivery/installation of the equipment to be financed.


Loan Amount

Security Arrangement

 Up to N10.0 million

1.    Asset debenture over the equipment financed.

2.    Irrevocable Personal Guarantee of the Chief Promoter of the company (For Limited Liability Companies).

3.    Two (2) external guarantors acceptable to BOI who must belong to any of the following categories:

a)   Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.

b)   Bankers (not below the level of (Assistant Manager) and must have been confirmed by current employer.

c)   Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

d)   Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers).


4.    Asset and Credit life insurance of the Chief Promoter, stating BOI as the first loss payee.


Or any other Guarantor that is acceptable to the Bank.


The guarantees must be supported by Notarized Statement of Net worth acceptable to BOI.


>N10.0 ≤ N200.0 million

1.    All assets debenture/ Legal mortgage in choice locations

2.    Irrevocable Personal Guarantee of the Chief Promoter of the company.

3.    Asset and Credit Life Insurance of the Chief Promoter.




Bank Guarantee from a Commercial Bank acceptable to BOI.


  • 80% Loan (including working capital).
  • 20% (minimum contribution by the promoter)

For existing projects, the estimated value of the factory building and/or relevant processing equipment may be applied against the borrower’s 20% contribution. However, the factory building and/or equipment must be valued professionally by any of BOI’s accredited valuers.


<10m                     – 30 working days.

>10m < N200m – 40 working days.


Term Loan: In phases in accordance with agreed milestones.

Working Capital: After successful installation and testing of the equipment, or as may be expedient on a case-by-case basis.

REPAYMENT SOURCE     From proceeds of the operation of the business.

REPAYMENT MODE         To be structured in line with the business cycle of the project.