Bank Of Industry: Conditions And Procedures In Applying For A Loan

The Bank of Industry Limited (BOI) is regarded as Nigeria’s oldest, largest and most successful development financing institution. It was rejuvenated in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964 after Nigeria Independence. The bank took off in 1964 with an authorized share capital of 2 million (GBP), which as at that period has just the Barclays Bank Now First Bank Of Nigeria FBN to contend with.

The International Finance Corporation which produced its pioneer Chief Executive held 75% of its equity along with a number of domestic and foreign private investors. Although the bank’s authorized share capital was initially set at N50 billion in the wake of NIDB’s reconstruction into BOI in 2001, it has been increased to 250 billion in order to put the bank in a better position to address the nation’s rising economic profile in line with its mandate.

After a successful institutional, operational and financial restructuring programme embarked upon in 2002, the bank has transformed into an efficient, focused and profitable institution that is well placed to effectively carry out its primary objective of providing long term financial Assistance to the industrial sector of the Nigerian Economy.


Terms And Procedure For Acquiring Loans At Bank Of Industry


Interest Rate: 9% per annum.

Fees: 1% Processing fee (full payment at approval and subsequent payment on the outstanding balance at the beginning of each year).

Tenor: 5 Years.

Moratorium: 6 months (from date of loan disbursement)


  1. Customer requests for the facility and if approved an offer is made by BOI to customer based on approved terms and conditions.
  2. Customer accepts the offer and meets all conditions precedent to draw down, including deposit of 20% Equity contribution into designated account.
  3. BOI disburses the 70% loan in tranches direct to approved contractors and suppliers in line with agreed milestones.
  4. Upon completion, MSME-friendly partner bank provides 10% working capital.
  5. Customer is responsible for running of the plant and full repayment


  • Debenture over the assets of the company or lien over the equipment (present and future) in the case of a cooperative society.
  • Deposit of 20% equity contribution into designated BOI account.
  • Cross guarantee of members in case of co-operative societies.
  • Personal Guarantee of Sponsors/Promoters in case of companies.
  • Two (2) external guarantors acceptable to BOI who must belong to any of the following categories:
  • Senior Civil Servant (not below the rank of Assistant Director).
  • Bankers (not below the level of Branch Manager), with minimum of 5 years in service with the Bank (current employer).
  1. Lawyers (SAN).
  • The guarantees must be supported by Notarized Statement of Net worth.
    Referral Letter from a Recognized Traditional Ruler or Authorized Local Government Official.
  • Domiciliation of sales proceeds with the selected/accredited MSME friendly banks (find list of banks in our download centre CAP Fund Appendix III).

 Bank Of Industry Major Area Of Business

The Bank has also deem it appropriate, as part of the Federal Government move to Diversify The Economy to focus more on the Agricultural Sector Of The Economy.

The first phase of the scheme is to facilitate the processing of the top three (3) major crops in each state of the federation and the FCT (Appendix V), into various derivatives as stated below:

S/N Agric Products Derivatives
1. Cassava Cassava Flour, Chips, Starch, Garri, Fufu.
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 Cosmetics, Confectionary and Pharmaceuticals.
12. Plantain Flour, Chips.
13. Cashew Cashew Nuts
14. Tomato Tomato Paste, Tomato Ketchup

Bank of Industry Contact

23 Marina St, Marina, Lagos, 100101
(234)-1- 2715070-99


Please note that other products not listed, but are available in abundance can be considered on their merit.

Please Feel free to drop comments or any question regarding this post or Any other posts.

1 thought on “Bank Of Industry: Conditions And Procedures In Applying For A Loan”

  1. Hello,

    i am interested to know the banks that are on the list of BANK OF INDUSTRY as partners.

    i am working towards a loan at the bank and i want to know if my bank is a partner.



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