BoI supports agro processors with N5bn loan

Nigeria’s Bank of Industry (BoI) has launched a N5bn funding programme for agro processors to enable them establish small scale plants or mini mills used to process agricultural produce.

The fund, also known as the Cottage Agro Processing (CAP) Fund, will help finance about 1000 projects at 9 per cent interest charges.

“The loans will be granted at a single digit interest rate of nine percent per annum and total management fee of 1 per cent. The tenor is five years with a moratorium of six months,” managing director of BOI, Rasheed Olaoluwa, said.

About 20,000 direct and indirect jobs will be created through this programme, he added.

The fund, which is basically targeted at small scale farmers, will enable Nigeria catch up with other African nations such as Kenya and Ethiopia, whose agro-processing industry is contributing largely to economic growth.

While Nigeria’s non-oil exports stands at about $3bn, experts believe that if it starts making ample use of its raw materials instead of exporting them, it could translate to inclusive growth and more economic development.

Speaking further on the project, Olaoluwa said the projects to be financed would be located close to the source of the agricultural products to be processed.

Also, the business plan must address both the primary and secondary sources of energy to power the plant, while the equipment supplier will go through accreditation by the development bank and will provide a performance bond and enter into a maintenance agreement.

Some of the raw materials exported by Nigeria includes sheep and goat skin, sesame seed and shrimps.