Bank of Industry Fashion and Beauty Fund

The Bank of Industry Fashion and Beauty Fund was arranged to cater to the fashion industry. The industry is divided into the creative (design and production) and the sales (sale and distribution) function. In Nigeria, the creative part is present but there are not enough platforms for the sales functions. The structure of the fashion industry is centred on the designers which make mainly three different categories of clothes: Haute Couture, Prêt a Porter (ready- to -wear) and High Street fashion (mass produced).


The fashion and beauty industry if well-developed has the capacity of generating many profitable companies and providing a variety of jobs to millions of Nigerians, especially the youth and women, by empowering them and reducing the high unemployment rates.


The fund will be accessed by Limited Liability Companies, Enterprises and Cooperatives (Clusters) in the following segments of the fashion & beauty value chains:

  • Adire (Tie & Dye) & Aso-Oke
  • Clothing (design and production)
  • Fashion/Beauty Training Institutes
  • Leatherworks
  • Distribution (local Label retailing)
  • Beauty salons (Hair, Skin, Face or make up, feminine cleaning etc)

All businesses must be registered with at least one relevant trade association.

  • The Cooperative (Cluster) must have registered for at least two (2) years prior to loan application.
  • All members of the cluster will be jointly and severally liable for performance of the agreement in accordance with its terms.
  • One of the members of the cluster will be appointed and entitled to, on behalf of each and all members of the cluster together in the company, assume responsibility and receive instructions.
  • Realization of the overall agreement, including payments, will be made only with an authorized member of the cluster.


  • Market Expansion: The fashion industry is no longer solely dependent on `brick and mortar’; stores for sales. Opportunities for retail sales have expanded through e-commerce, which allows buyers to shop and purchase online.
  • Abundance of product variety
  • Growing Competition


The fund shall be deployed for the supply of materials for all fashion supply chains; as well as for working capital for raw materials and consumables. This is expected to create a minimum of 8,000 jobs comprising 3,000 direct and 5,000 indirect jobs.


Both Term Loan & Working Capital should not exceed the upper limits of the following categories:

  • Micro Enterprises                         N10.0 million maximum
  • Small Enterprises                          N50.0 million maximum
  • Medium Enterprises                    N200.0 million maximum


To be disbursed towards the acquisition of items of equipment and provision of working capital.


Interest Rate:  9% per annum

Fees:                1% Processing Fee


Term Loan:      3 – 5 years

Working Capital:         Structured working capital for up to 3 years

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


Loan Amount (N) Security Arrangement
Up to 10.0 million (Cooperative Societies) 1.    Joint and several guarantees of the beneficiary members of the Cooperative society” Cross guarantee of members of cooperative (cluster) Society

2.    Personal guarantees of the President and    Secretary of the Cooperative Society.

3.    Two (2) external guarantors acceptable to BOI

4.    10% of the security deposit

5.    Lien over the stock of trade (present and future)

6.    Asset debenture on Equipment finance.

Up to 10.0 million (Enterprises/Limited Liability Companies) 7.    Asset debenture over the equipment financed.

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

9.    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.

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

d)   Other external guarantors including industry players that are acceptable to BOI with reasonably sizeable net worth in comparison to the loan amount

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

>10.0 ≤ 200.0 million

(Enterprises/ Limited Liability Companies)

1.    Legal mortgage on pledged property


2.    Bank Guarantee from Commercial Banks acceptable to BOI.

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


4.    All assets debenture


  • 70% Loan (including working capital).
  • 30% (minimum contribution by the promoter)

*For existing projects, the existing assets may be applied against the borrower’s 30% equity contribution. However, the assets must be verified by any of the Bank’s accredited valuers.


Up to 10 Million (30 working days)

Above N10 Million >= 200 Million (40 working days)

*Provided all requisite documents are in place


Term Loan & Working Capital:

Disbursement in respect of other items to be made in phases in accordance with agreed milestones to the supplier(s).

Disbursement of all items to be sourced from open market to be made directly to the customer.


From proceeds of the operation of the business.


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

Management Team

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