How To Get N1bn Loan For Your Manufacturing Business
By Ted Iwere
The Federal Government of Nigeria under President Bola Ahmed Tinubu has set up the Manufacturing Intervention Fund to facilitate the growth of manufacturing businesses in Nigeria.
What are the essential elements of the scheme? Which sectors of the economy are its target beneficiaries? What are the qualifications for accessing the Fund? How can potential beneficiaries access it? Which agency of the Federal Government is responsible for implementing the Manufacturing Intervention Fund? How can the Fund be accessed?
The Manufacturing Intervention Fund (MIF) is a revolving fund, meaning that repayments from beneficiaries are used to provide loans to new businesses.
Its objective is to promote the growth and development of the manufacturing sector in Nigeria, accelerate job creation, import substitution and diversification of the economy.
Elements Of The Manufacturing Intervention Fund (MIF)
The essential elements of the Fund, a long-term loan scheme designed to provide affordable financing to manufacturers,
are as follow:
- Loan Amount: Qualified applicants are allowed to apply for a maximum loan amount of N1 billion.
- Interest Rate: The interest rate for the loan is Nine (9) percent per annum.
- Tenor: A beneficiary of the Fund has up to 10 years to repay the principal sum and interest charge on the loan.
- Moratorium Period: A borrower is allowed a moratorium of up to two (2) years during which the borrower does not need to make any payment towards servicing the loan.
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Which are the commercial entities that may apply for the Manufacturing Intervention Fund? The target beneficiaries of the Fund must be an operator in any one of the following categories:
- Small, medium or large enterprises operating in the manufacturing sector.
- Companies seeking to expand or establish new manufacturing facilities.
- Businesses involved in import substitution and export promotion.
Qualifications For Accessing The Manufacturing Intervention Fund (MIF)
What are the qualifications for accessing the Fund? For a business to access the Fund, it must:
- Be registered as a business in Nigeria with the Corporate Affairs Commission (CAC).
- Engage in business as a manufacturer in a sector that is eligible within the scope of the Fund.
- Meet the eligibility criteria set out by the implementing agency, which include an equity ownership of 51 percent or more by Nigerians, a minimum turnover, positive credit history and a bankable business plan.
How Manufacturers Can Access The Fund
How can a borrower access the Fund? The Bank of Industry Limited (BOI), Nigeria’s largest and arguably most successful development financing institution, is the implementing agency of the Manufacturing Intervention Fund.
BOI exists to help in transforming Nigeria’s industrial sector through the provision of financial and advisory services for the establishment or expansion small, medium and large enterprises.
It is renowned for supporting business development activities across various sectors, including agriculture, food processing, creative industries, engineering, technology, healthcare, oil and gas, petrochemicals, renewable energy and solid minerals.
Under the scheme, BOI is responsible for evaluating loan applications, providing technical and financial support to beneficiaries and monitoring the performance of the loan.
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The application process includes:
Completion and submission of the Application Form, accompanied by the required supporting documents, including:
- Business Plan.
- Financial Statements.
- Feasibility Study.
- Certificate of Incorporation.
- Tax Clearance Certificate
Interested businesses wishing to submit applications for the Manufacturing Intervention Fund are encouraged to visit the Bank of Industry website or contact any of its branches located in not fewer than 30 States across Nigeria.
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