The Bank of Industry (BOI) says it allocated N10 billion to back the purchase and ownership of agro-equipment so that agricultural entrepreneurs and f
The Bank of Industry (BOI) says it allocated N10 billion to back the purchase and ownership of agro-equipment so that agricultural entrepreneurs and farmers to better develop mechanized farming in Nigeria.
Waheed Olagunju, BOI’s acting Managing Director revealed this in Abuja on Wednesday, 15th December 2016 while signing an MoU with development partners on the national agro-mechanization programme.
BOI had also set apart other funds for particular agricultural products to aid farmers increase the Nigeria’s agricultural production. Listed below are some of these Bank of Industry funds.
4 Vital Bank of Industry Funds:
- The N5 billion cottage and agro-processing fund.
- The N1 billion fish farming and processing programme
- The N1 billion animal and fishery programme
- The newly inaugurated N10 billion agro-mechanisation fund
The latest N10 billion fund show that BOI is giving lots of attention to agriculture because they believe that Nigeria’s industrialization must be agricultural sector-driven.
12 Things to Know about the Bank of Industry’s N10 billion Agro-mechanization Fund
1. The fund would help practitioners in the agricultural sector to get funds needed to buy agro-equipment for agricultural production to better the efficiency and productivity in the agricultural sector.
2. The N10 billion agro-mechanization fund would used as loan not a grant.
3. It will be executed by several international development partners involved with promoting Nigeria’s agriculture.
4. The maximum tenure of the loan would be 5 years at an interest rate of 9% per annum for beneficiaries and agricultural entrepreneurs.
5. The signing of the MoU with development partners confirms BOI’s unrelenting support for the agricultural sector in Nigeria
6. The N10 billion set apart for development of agro-mechanisation shows the importance to the economic development of Nigeria.
7. Prospective applicants for the loan will be classed into three groups: micro, small and medium businesses respectively.
8. The agro-business micro category would be funded with N10 million.
9. The small businesses category would have access between N10 million and N50 million.
10. Medium scale agro-businesses operators would have access to between N50 million and N500million.
11. The agro-funding programme is expected to create about 10,000 direct jobs and about 30,000 indirect jobs in Nigeria.
12. Two of the international development partners teaming up with the BOI to push the agro-mechanization programme are:
• The Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL)
• PROPCOM MAI-KARFI, a programme funded by the United Kingdom Department for International Development (DFID)