About the fund

Nigeria is richly endowed with abundant agricultural products available in every state of the federation.

However, limited capacity for processing and preservation, results in huge losses and wastages.

In a bid to tackle this problem, BOI has established a Cottage Agro-Processors Fund to support the establishment of cottage agro processing plants that will produce food products and raw materials for industries within and outside the Staple Crop Processing Zones (SCPZs) across Nigeria.

The Fund will be accessed by Limited Liability Companies, Enterprises and Cooperative Societies engaged in the processing of agricultural products either into finished food products or raw materials for industry or for the export market

CAP Fund –Products/ Sectors supported

CAP Fund- Products/ sectors supported
S/N Agric Products Derivatives
1 Cassava Cassava Flour, Chips, Starch, Garri, Fufu, Ethanol
2 Oil Palm Palm Oil, Palm Kernel Oil, Palm Kernel Cake.
3 Rice Paddy Rice, Flour.
4 Groundnut Groundnut Oil, Groundnut Cake
5 Yam Yam Flour, Chips
6 Maize Corn Flour, Starch, Livestock Feed.
7 Sorghum Sorghum Flour, Syrup, Sorghum Brewers Grain.
8 Aquaculture Smoked Fish, Fish Fillet.
9 Livestock Leather Products, Poultry, Milk, Yoghurt, Butter.
10 Cocoa Cake, Butter, Powder.
11 Shea nut Shea Butter For Cosmestics, Confectionary And Pharmaceuticals
12 Plaintain Flour, Chips
13 Cashew Cashew Nuts
14 Tomato Tomato Paste, Tomato Ketchup

Cottage Agro-Processors (CAP) Fund

  • 9% Interest rate
  • N10 million single obligor limit
  • 5 years tenor (Inclusive of 6 months moratorium)
  • 1% processing fee (payment at approval)

Parties to the fund

  • Bank of Industry
  • Partnering Bank
  • The customer
  • Accredited Equipment Suppliers and Valuers

Bank of Industry


  • Provides the long term loan
  • Manages the fund
  • Equipment procured in BOIs name and revert to the customer upon liquidation


Partnering Bank

  • Provides working capital
  • Tripartite agreement with BOI and customer to sweep repayments to BOI

The customer

  • 10% equity contribution
  • Select equipment from BOI accredited suppliers
  • 3-year equipment maintenance agreement with the supplier
  • Factory constructed for new project and modified for existing project Sign the Tripartite Agreement authorizing the Partnering Bank to sweep loan repayments into BOI’s account based on the Loan Amortization Schedule


Accredited supplier

  • Supply, installation and commissioning of the equipment
  • 2-year warranty for the equipment
  • 3-years equipment maintenance agreement with the customer
  • Provide standard factory layout to accommodate the equipment to be supplied
  • Provide initial training for the customer on the operation of the equipment
  • If supplier is a fabricator, it must have Standards Organization of Nigeria (SON) certificate

Security arrangement

  • Debenture over assets of the company or lien over the equipment
  • Deposit of 10% equity into designated BOI account
  • Personal guarantee of promoters
  • Two (2) external guarantors to be backed by notarized net-worth statement acceptable to BOI
  • Referral Letter from a recognized Traditional Ruler / Local Government Chairman or LG Secretary/ Imam / Priest
  • Domiciliation of sales proceeds with the selected/accredited SME friendly banks.

Do you need further information and guidance on how to assess BOI loans; Contact Agro News Nigeria; agronewsnigeria@gmail.com, info@agronewsng.com

Call;08035044364, 07031097516


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