The Government under the Nigeria Economic Sustainability Plan (NESP) is giving ₦4.5 million in grants to help Nigerians grow their business. Here’s a step-by-step application process for the ongoing Federal Government (NESP) ₦4,500,000 Grant.
This process is simple and fast. Ready for my strategy? Let’s get started:
As part of the Covid-19 recovery strategy, the federal government approved the USD 5.9 billion (NGN 2.3 trillion) NESP to stimulate and diversify the economy, retain and create jobs, and extend protections to the poor.
RELATED: Nirsal SME Loan for Traders & Micro, Small and Medium Enterprises (MSMEs)
Eligibility Criteria:
- Applicants under the scheme will be graduates of Nigeria Polytechnics and Universities:
- BSc/HND/ or it is equivalent);
- National Youth Service Certificate (NYSC) discharge or exemption certificate;
- Not more than ten years post-NYSC
Application Requirements:
- A registered business name
- Your Business Registration Number ( RC or BN)
- State in which the business operates
- Type of Business
- Age of Business(Number of years of operation)
- Phone Number and your government name
How to Apply
Interested persons should >>Click Here to Submit Your Application
Eight (8) Things you should Know before you Commence your Application
1. Mandate
The bank of industry targets businesses that engage in manufacturing and processing activities. Target sub-sectors include Agro-processing, Solid Minerals, Information Technology, Oil and Gas and Creative Industry.
2. Entities that BOI Finances
Bank of industry only finances enterprises or companies and not an individual person or group of persons. The company / enterprise must be duly registered and you will be required to provide the registration number for a Limited Liability Company or business name for an enterprise before you can proceed with your application.
3. Items that BOI can finance
The bank is principally set up to finance industrial equipment used in manufacturing. The Bank does not finance land and building which are expected to be financed from equity. You can also access your working capital requirements from any of the ten (10) SME friendly banks that Bank of Industry partners with at Monetary Policy Rate plus 6 percent.
4. Mode of disbursement
The bank does not disburse the loan to the borrower in cash but to the vendors and suppliers of the equipment that the loan application is for.
5. Amount that can be financed by BOI
BOI’s loan support to the SME starts from N5 million. However, loan below N5 million are provided on our matching fund platform which is operated in collaboration with various state governments and on our Bottom of the Pyramid (BOP) scheme which is operated through MicroFinance Banks. Please click here to see how you can apply under the BOI matching Fund or the BOP scheme.
6. Collateral requirements
As part of the fiduciary responsibility in managing funds under its care, Bank of industry requires that you pledge some assets to secure you loan. However, the Bank also accepts other forms of security subject to adequate coverage of the loan being provided to you. Types of security the Bank accepts include:
- Legal mortgage on a landed property. The property must be duly registered with a Certificate of Occupancy
- Debenture on assets of the company
- Bank Guarantee
- External Guarantors with Notarized statement of Networth for loans below N10 million.
Please note that the Bank is willing to share assets previously pledged to other lenders provided the Bank’s loan is adequately covered in the arrangement. Also note that the Bank is willing to accept third party collateral.
7. Startup businesses
While the Bank under its general risk acceptance criteria requires a prospective borrower to have at least three years acceptable performance track record, it can also lend to start-ups at its discretion and on a case-by-case basis. A startup would need to provide proof of cognate experience in its business area and would need to have a highly qualified management and operational team with sound management structure.
8. You need to support your application with some documents
Please click here to see the list of the documents you should be prepared to upload while you apply on this platform
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