Bank of Industry Food and Agro Commodity Processing Fund

Bank of Industry Food and Agro Commodity Processing Funds unlock credit to the SMEs across the value chain of the food and agro commodity processing sector; from the aggregators that require technology enhanced logistics and storage facilities, to the SME players at the other end of the value chain that would require packaging and or distribution infrastructure facilities.


To address the huge potentials in the Nigerian processed food market, by providing funding for food processors along the various agricultural value chains in line with Federal Government’s Green Alternative.


As such, financing under this product programme shall be available to businesses operating either as aggregators, processors, packaging and distribution firms along the food/agro commodity processing value chain; as well as Quick Service Restaurants (QSR).


  • Guaranteed supply of raw materials/input at competitive prices: Availability of the raw materials in steady and sufficiently commercial quantities is key for production and business continuity.
  • Good manufacturing Practices: To ensure healthy conditions during production, good manufacturing practice must be strictly adhered to during production operations.
  • Supply chain management: Effective management of relationships with both consumers and suppliers is key. This includes monitoring the number of credit days, stock levels and order lead times.
  • Market strategy/demand: The availability of a ready market to absorb products and effective marketing strategies to create and sustain effective demand is also key.


The Fund will be accessed by Limited Liability Companies, Enterprises, Cooperative and Associations engaged in the food and agro commodity processing value chain for the local or export market. This will include aggregators, processors, packaging and distributors/retailers.


The fund shall be deployed for the supply and installation of equipment for food processing in all parts of the country and processing of agric commodities in areas of comparative advantages; as well as for working capital for raw materials and consumables.


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

  • Cooperatives/Enterprises       N10.0 million maximum
  • Limited Liability Company      N200.0 million maximum

Requests above N50.0 million would be considered by EMC using the Credit Rating Model and not as a BIR (i.e. they would be individually assessed)”. Though the Terms and Conditions of the P/Paper would still apply.


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


Interest Rate:  9% per annum

Fees:                1% Processing Fee


Term Loan:                  3 – 5 years

Working Capital:         Structured working capital up to 36months (inclusive of moratorium)

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


Loan Amount Security Arrangement
 Up to N10.0 million 1.    Debenture over the present and future assets of the company (for entities with valid & acceptable title)




Lien over the equipment (present and future); in addition to Payment of 10% security deposit into designated BOI account.


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


3.    Cross guarantee of members in the case of cooperative society.


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


·      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.

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

·      Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

·      Senior Staff of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers).

·      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 by duly Notarized Statement of Net Worth acceptable to BOI.


5.    Movable collateral registry


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


> 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.




4.    Bank Guarantee from a Commercial Bank acceptable to BOI.


  • 80% Loan
  • 20% (minimum contribution by the promoter, inclusive of 10%       security deposit in the case of loans below N10.0 million)

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.


Up to 10 Million                                  (30 working days)

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

*Provided all requisite documents are in place.


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.


Term Loan:

  • Repayable over a maximum tenor of 5 years (monthly, quarterly, semi-annual, annual or bullet repayment as appropriate).
  • Working Capital Finance:
  • Repayable over maximum period of 36 months (inclusive of moratorium).

Management Team

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