THE TERTIARY INSTITUTIONS ENTREPRENEURSHIP SCHEME (TIES)
This scheme is designed and implemented to provide financial support to all Nigerian graduates who have completed the mandatory National Youth Service Corps (NYSC) programme. The scheme provides a single-digit interest rate for pre-defined value-adding sectors of the Nigerian Economy to promote entrepreneurship, drive job creation and channel the youthful energy into productive use and GDP growth.
Activities to be covered under the Scheme shall include innovative start-ups and existing businesses owned by graduates of Nigerian polytechnics and universities in the following areas:
- Agribusiness – production, processing, storage and logistics;
- Information technology – application/software development, business process outsourcing, robotics, data management;
- Creative industry – entertainment, artwork, publishing, culinary/event management, fashion, photography, beauty/cosmetics;
- Science and technology – medical innovation, robotics, ticketing systems, traffic systems, renewable energy, waste management; and
- Any other activity as may be determined by the CBN from time to time.
Note: Priority will be given to innovative entrepreneurial activities with high potentials for export, job creation and transformational impact.
Trading activities shall not be eligible for financing under the Scheme.
Eligibility Criteria
Applicants under the Scheme shall be graduates of Nigerian polytechnics and universities with:
- First degree certificate (BSc/HND/ or its equivalent);
- National Youth Service Certificate (NYSC) discharge or exemption certificate;
- Certificate of Participation issued by polytechnics and universities evidencing entrepreneurship training; and
- Not more than 7 years post-NYSC. That is, covering post NYSC for the period from 2014 to 2031.
Loan Requirements
Tier 1 (Loan Limit: N5.0 million)
- Bank Verification Number (BVN);
- Duly signed Global Standing Instruction (GSI);
- Third party guarantee from a senior federal/state civil or public servant (not below level 10 and not having less than 5 years to retire from service), clergy of note and reputation or recognized traditional ruler.
- All movable assets financed under the Scheme or used as collateral to secure the loan shall be registered with the National Collateral Registry (NCR).
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Tier 2 (Loan Limit: N25.0 million)
The partnership or company shall apply as a registered business and each member of the group shall also submit:
- Bank Verification Number (BVN);
- Duly signed Global Standing Instruction (GSI);
- Third party guarantee from a senior federal/state civil or public servant (not below level 10 and not having less than 5 years to retire from service), clergy of note and reputation or recognized traditional ruler.
- All movable assets financed under the Scheme or used as collateral to secure the loan shall be registered with the National Collateral Registry (NCR).
Loan Documentation Required
Customers are required to open an account with the Bank of Industry before application can commence. The documents needed for an account to be opened are listed below. A customer identification number will be created at the end of the account opening process.
An account can be opened by completing an account opening form and submitting all the required documents:
ACCOUNT OPENING REQUIREMENT LIST
- Schedule of the shareholders signed by the company secretary. (Shareholders Register) for new customers and a confirmation of earlier submission for returning customers
- Full Incorporation Documents:
- Photocopy of Certificate of Incorporation
- Certified true copy of Memorandum and Articles of Association
- Forms CAC 2.5 (Allotment of Shares)
- CAC 2.3 (Particulars of Directors)
- CAC 2.1 (Appointment of Company Secretary)
- Means of identification of all Directors of the company (i.e., photocopy of International Passport/Driver’s License and National Identity Card) and BVN of the Executive Directors. (**note that ID of all Directors are needed for compliance and credit search)
The loan application process will begin after the account is opened. A loan application form is required to be completed and all required documents submitted and verified:
LOAN APPLICATION / APPROVAL REQUIREMENT LIST
- Formal Loan Application on Letterhead
- Duly completed Loan Application Form
- Feasibility Study Report on the project to be financed stating write-up on technology and manufacturing process(s), etc.
- Quotation/Proforma Invoice for the supply of items of Machinery and Equipment. Sources and quotations for Raw Materials expressed in quantity and amount
- Security: Bank Guarantee, a letter of intent for Bank Guarantee (with Risk Management being part of the authorized signatories) of the commercial bank issuing the guarantee. Any exception should be supported with the Bank’s approval limits OR
- Legal Mortgage
- Photocopy of the title document(s) to the property being pledged e.g Statutory Certificate of Occupancy/Deed of Assignment/Conveyance/Deed of sublease
- Valuation Report on the Property Proposed as Security from BOI’s accredited value
- Lease agreement, if operating from a rented premises
- A copy of the draft Technical, Management, Machinery Supply and/or Joint Venture Agreement (where applicable)
- Three years’ Audited Financial Accounts and most recent Management Account from a BOI accredited auditors (for an existing business) OR Statement of Affairs (for business less than one (1) year)
- Company’s Bank Statement for a period of one (1) year
- The output of the process is the offer letter
- Two options are proposed for this stage as shown below
- Regulatory approvals e.g NAFDAC certificate, Mining Lease
- Declaration of Outstanding Liabilities to other Institutions and/or Individual
If a loan a loan is approved, the next and that last part of the process is disbursement. Before disbursement can begin, the documents below must be submitted:
LOAN AVAILMENT / DISBURSEMENT REQUIREMENT LIST
To be provided by the customer:
- Submission of Letter of Offer duly endorsed by a Director and Company Secretary or two (2) Directors
- Letter of acceptance of Offer and Letter showing specimen signature of the authorized signatory
- Board Resolution authorizing borrowing
- Return of duly executed Loan Agreement
- Evidence of payment of fees (if applicable – appraisal, commitment and legal fees)
- Letter of Attestation
- Original proforma invoice(s) for the approved item
- Four (4) Passport photographs of the Chief Promoter and a Director
- Evidence of filing of Annual Returns, as well as tax clearance certificate -TCC- for the Company, the Chief Promoter and Directors of the Company. Evidence of payment (eTCC) should be accepted for deferral
- Submission of Bank Guarantee or title documents/other legal documents e.g. Statutory Certificate of Occupancy of the pledged property, ground rent receipts etc.
- Letter of undertaking to pay interest during moratorium
