Micro Business
Financing Disadvantaged and Vulnerable Sectors at the Grassroots
We deliver tailored support and low-interest loan products to micro-enterprises in the informal, semi-formal and formal sectors.
The Micro Enterprise Directorate provides low-interest lending solutions to micro-enterprises in the informal, semi-formal and formal sectors through the use of intermediary channels to ensure last-mile delivery, reach and programme sustainability.
We are committed to achieving our mandate to deepen BOI’s engagement with the Micro Enterprise sector through innovative financial and non-financial products and services. We have a strong network of strategic partnerships to deliver financial services to our target clients. In recent times we have also begun to deepen our use of technology to drive financial inclusion.
Through the activities of our directorates, we are able to increase the positive impact of our business operations by providing sustainable finance for development-focused sectors of our economy thereby contributing to the achievement of the sustainable development goals around ending poverty and hunger, driving quality education & gender equality, creating decent work and economic growth, and transforming industry, innovation and infrastructure.
Micro Businesses Group
The Directorate’s activities are executed along three strategic groups
Cluster Financing identifies and evaluates value chains strategic to the growth of the Nigerian economy. This group finances business along various value chains to guarantee the seamless flow of activities across the various chains. Financing products take into consideration the roles of the various stakeholders with a view to de-bottlenecking the access to finance challenges experienced along the value chains.
The lending solutions are designed to reach the ultimate beneficiaries, through intermediaries, or an anchor market to guarantee product offtake. Cluster financing programmes include the smallholder farmer cluster financing programme and the Agric Value Chain delivered through Babban Gona Farmer Services.
Products Under Cluster Financing
- Smallholder Farmer Cluster
The product aims to alleviate the challenges experienced by MSMEs regarding access to financial services nationwide through the provision of digital loans. Through this product, the Bank leverages intermediaries such as FINTECH aggregators to provide indirect lending within the shortest time to Nigerian micro and very small businesses. This product aims to further encourage the Bank’s mandate to promote industrialization in Nigeria by providing quick and
seamless financing to MSMEs who account for 59% of Nigeria’s GDP, and are the significant drivers of job creation in the country. One such product is Self Reliance Economic Advancement Programme (SEAP).
SEAP is a non-bank MFI that provides microfinance services such as loans to microenterprises and micro-credit schemes. SEAP is dedicated primarily to the economic empowerment of the underprivileged, capacity building and improvement of the socio-economic condition of the poor. SEAP provides services such as loans, SEAP Health Foundation, Health Insurance Scheme Scholarship Scheme, Social Responsibility and Development, and Disaster Support Scheme.
Products Under Fintech Digital Lending
- Fintech Digital Lending
The Distributor Financing Product aims to provide the much-needed working capital financing to micro-businesses for the purchase and supply of Made-in-Nigeria products and services through intermediary companies along the product value chain. BOI intervenes by bridging the funding gap through working capital loans to eligible intermediary companies that distribute locally produced goods and services to micro-entrepreneurs. Through this product, BOI promotes the growth of local product manufacturers as well as micro-enterprise distributors. In recent times Tradedepot Limited facilitated this product for the bank.
Tradedepot Limited is a technology-enabled company providing aggregation for manufacturers and small & micro businesses in the retail distribution space. This facility is a working capital
facility for the supply of made-in-Nigeria products to over 36,000 micro retailers managed through TradeDepot’s Shop Top-up Technology Platform.
Products Under MSME Distributorship
- MSME Distributor Finance
WHY CHOOSE BOI
We Create Convenient and Valuable Opportunities for Businesses in Nigeria
- Our loan terms are concessionary and provided to ensure the greatest levels of success for our beneficiaries.
- The Bank offers extended repayment periods to give businesses ample time to repay loans and minimize default.
- We offer sector-specific loans which are tailored to the unique needs of micro-enterprises, SMEs operating along those value chains.
- Apart from financing, we create and leverage our partnerships with other stakeholders to provide capacity building opportunities for improved business performance as businesses also require entrepreneurship and management skills to succeed.
- The Bank delivers strategic support and financing to the disadvantaged and vulnerable segments within the grassroots that are typically underserved but critical to economic prosperity.
Micro Businesses Products
Financing disadvantaged and vulnerable sectors at the grassroots
Impact
In 2021 alone, the SME Directorate obtained approval for 573 customers with a combined value of N60.79 billion in spite of the COVID-19 Global pandemic and its negative impact on businesses. We continue to use our branch network to significantly improve the Bank’s SME loan portfolio and impact across all the Geo political zones of Nigeria; by deploying bespoke and demand-driven financial products and proactive support services that will catalyse SME growth and development in the country.
Babban Gona Programme
Babban Gona was established to create jobs for young Nigerians in the agriculture sector. Focusing on maize and rice farming, the company provides farmer cooperatives with financing, training, agricultural inputs and support. In 2021, the company was able to procure inputs for over 22,000 farmers who were responsible for harvesting over 70,000MT of maize.
Smallholder Farmers Lending Product & MSME Distributor Finance Programme
The bank’s 2021 disbursement includes N2.99billion to 22,120 farmers through our Smallholder Farmers lending product; and N1 billion to 4,000 micro-retailers through our MSME Distributor Finance Programme. Through these interventions, an estimated 950,640 direct and indirect jobs were created in 2021.
State Enterprise and Empowerment Programme (SEEP)
SEEP is a social intervention program designed to provide affordable credit for micro-enterprises that are unable to grow their businesses due to a lack of capital. The programme aims to support 40,000 qualified micro-enterprises per state. The Osun State Government partnered with BOI to train and provide seed loans worth N47.2 million to 827 MSMEs.
Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES)
The NG-CARES program is a $750 million state-driven initiative backed by the World Bank, specifically for the elevation of businesses affected by COVID-19. Twenty-nine states have collaborated with the Bank of Industry to use its infrastructure in executing the program in their states.
MSME (Micro Small and Medium Enterprise) Survival Fund
The MSME Survival Fund is an N75 Billion Fund, launched in September 2020. It is part of the N2.3 Trillion stimulus package (The Nigerian Economic Sustainability Plan (NESP)). The bank has disbursed a one-time N30,000 grant to 293,333 artisans across 36 states and FCT worth N8.8 billion.
FAQs
Do you have questions? We have answers.
Bank of Industry is Nigeria’s oldest, largest and most successful Development Finance Institution (DFI). Incorporated in 1959 as Investment Company of Nigeria (ICON), transformed into Nigerian Industrial Development Bank in 1964 and ultimately into Bank of Industry (BOI) in 2001.
Consequently, BOI’s mission is to enable the transformation of Nigeria’s industrial sector by providing financial and advisory support for;
- The establishment of large, medium and small projects/enterprises, and
- The expansion, diversification, rehabilitation and modernisation of existing enterprises.
BOI’s mandate is the transformation of Nigeria’s industrial sector by providing financial and advisory support for;
- The establishment of large, medium and small projects/ enterprises, and
- The expansion, diversification, rehabilitation and modernisation of existing enterprises
Bank of Industry encourages local industrial production and value creation through manufacturing, production and agro processing activities.
The Bank primarily provides financial assistance, as well as business advisory/ support services to enterprises.
Being a key implementing institution of the Federal Government’s economic plans, the sectors supported by the Bank of Industry are a reflection of the priority sectors targeted by the government. These include: Agriculture (Agro Processing and Food Processing), Solid Minerals, Creative Industry, Oil and Gas (Midstream and Upstream), Healthcare, Technology etc.
Bank of industry primarily finances projects involved under manufacturing, production and agro processing.
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