Micro Business
Financing Disadvantaged and Vulnerable Sectors at the Grassroots
The Micro Enterprise Directorate provides low-interest lending solutions to micro-enterprises in the informal, semi-formal and formal sectors through the use of intermediary channels to ensure last-mile delivery, reach and programme sustainability.
We are committed to achieving our mandate to deepen BOI’s engagement with the Micro Enterprise sector through innovative financial and non-financial products and services. We have a strong network of strategic partnerships to deliver financial services to our target clients. In recent times we have also begun to deepen our use of technology to drive financial inclusion.
Through the activities of our directorates, we are able to increase the positive impact of our business operations by providing sustainable finance for development-focused sectors of our economy thereby contributing to the achievement of the sustainable development goals around ending poverty and hunger, driving quality education & gender equality, creating decent work and economic growth, and transforming industry, innovation and infrastructure.
Micro Business Group
The Directorate’s activities are executed along three strategic groups
Cluster Financing
Cluster Financing identifies and evaluates value chains strategic to the growth of the Nigerian economy. This group finances business along various value chains to guarantee the seamless flow of activities across the various chains. Financing products take into consideration the roles of the various stakeholders with a view to de-bottlenecking the access to finance challenges experienced along the value chains.
The lending solutions are designed to reach the ultimate beneficiaries, through intermediaries, or an anchor market to guarantee product offtake. Cluster financing programmes include the smallholder farmer cluster financing programme and the Agric Value Chain delivered through Babban Gona Farmer Services.
Products Under Cluster Financing
The Fintech Digital Lending
The product aims to alleviate the challenges experienced by MSMEs regarding access to financial services nationwide through the provision of digital loans. Through this product, the Bank leverages intermediaries such as FINTECH aggregators to provide indirect lending within the shortest time to Nigerian micro and very small businesses. This product aims to further encourage the Bank’s mandate to promote industrialization in Nigeria by providing quick and
seamless financing to MSMEs who account for 59% of Nigeria’s GDP, and are the significant drivers of job creation in the country. One such product is Self Reliance Economic Advancement Programme (SEAP).
SEAP is a non-bank MFI that provides microfinance services such as loans to microenterprises and micro-credit schemes. SEAP is dedicated primarily to the economic empowerment of the underprivileged, capacity building and improvement of the socio-economic condition of the poor. SEAP provides services such as loans, SEAP Health Foundation, Health Insurance Scheme Scholarship Scheme, Social Responsibility and Development, and Disaster Support Scheme.
Products Under Fintech Digital Lending
MSME Distributorship
The Distributor Financing Product aims to provide the much-needed working capital financing to micro-businesses for the purchase and supply of Made-in-Nigeria products and services through intermediary companies along the product value chain. BOI intervenes by bridging the funding gap through working capital loans to eligible intermediary companies that distribute locally produced goods and services to micro-entrepreneurs. Through this product, BOI promotes the growth of local product manufacturers as well as micro-enterprise distributors. In recent times Tradedepot Limited facilitated this product for the bank.
Tradedepot Limited is a technology-enabled company providing aggregation for manufacturers and small & micro businesses in the retail distribution space. This facility is a working capital
facility for the supply of made-in-Nigeria products to over 36,000 micro retailers managed through TradeDepot’s Shop Top-up Technology Platform.
Products Under MSME Distributorship
WHY CHOOSE BOI
We Create Convenient and Valuable Opportunities for Businesses in Nigeria
Micro Business Products
Financing Disadvantaged and Vulnerable Sectors at the Grassroots
MSME Distributor Finance
The MSME Distributor Finance Product is a programme designed to provide working capital
Smallholder Farmer Cluster
The AVC programme promotes the production of high quality agricultural produce
IMPACT
We leverage technology, strategic partnerships and intermediary channels to deliver tailored intervention and low-interest loan products to Nigeria’s micro-enterprises in the informal, semi-formal and formal sectors:
Babban Gona was established to create jobs for young Nigerians in the agriculture sector. Focusing on maize and rice farming, the company provides farmer cooperatives with financing, training, agricultural inputs and support. In 2021, the company was able to procure inputs for over 22,000 farmers who were responsible for harvesting over 70,000MT of maize.
SEEP is a social intervention program designed to provide affordable credit for micro-enterprises that are unable to grow their businesses due to a lack of capital. The programme aims to support 40,000 qualified micro-enterprises per state. The Osun State Government partnered with BOI to train and provide seed loans worth N47.2 million to 827 MSMEs.
The MSME Survival Fund is an N75 Billion Fund, launched in September 2020. It is part of the N2.3 Trillion stimulus package (The Nigerian Economic Sustainability Plan (NESP)). The bank has disbursed a one-time N30,000 grant to 293,333 artisans across 36 states and FCT worth N8.8 billion.
The bank’s 2021 disbursement includes N2.99billion to 22,120 farmers through our Smallholder Farmers lending product; and N1 billion to 4,000 micro-retailers through our MSME Distributor Finance Programme. Through these interventions, an estimated 950,640 direct and indirect jobs were created in 2021.
The NG-CARES program is a $750 million state-driven initiative backed by the World Bank, specifically for the elevation of businesses affected by COVID-19. Twenty-nine states have collaborated with the Bank of Industry to use its infrastructure in executing the program in their states.
FAQs
Frequently Asked Questions on Enterprise Products
Browse through our repository of answers to our frequently asked questions. Should you not find a conclusive answer to any of your questions, please book a consult by filling out the form on the right and we will get in touch with you.
There are criteria that must be met for a project to be eligible for financing. These include:
- Businesses must be registered with the Corporate Affairs Commission (CAC)
- Businesses must have their audited financial statements (if existing)
All loan applications are submitted at the various state offices closest to the customer. However, it is IMPORTANT TO NOTE that processing of the loan application does not commence until all documents stated in the checklist are provided. (Our Locations)
Micro-enterprises can apply for loans that are less than N10million.
Interest rates vary depending on the product. Please refer to the product guide on the website.
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