FGN Special Intervention Fund for MSMES (National Enterprise Development Programme) – The Fund is a Federal Government of Nigeria initiative to provide subsidized loans to Micro, Small and Medium Enterprises (MSME) at single digit (9% per annum) all-inclusive interest rate.
PURPOSE/RATIONALE: The Fund is a Federal Government of Nigeria initiative to provide subsidized loansto SMEs at single digit (9% per annum) all-inclusive interest rate. The Fund is also to cater for applications received from SMEDAN under the National Enterprise Development Programme (NEDEP) Scheme.
Economic Rationale:The Fund is aimed at stimulating economic activity in the SME sub-sector being the major drivers of industrialization, wealth and job creation.
TARGET MARKET/CRITERIA: The Fund can be assessed by duly registered Limited Liability Companies, Enterprises and Cooperatives in Nigeria. Applications are received and processed at BOI State Offices.
PROJECTED IMPACT: The fund is to be utilized for SMEs engaged in manufacturing and agro-processing businesses with emphasis on value addition to local raw materials.
PROGRAM LIMIT: N5.0 billion
SINGLE OBLIGOR LIMIT: N20.0 million
PRICING Fees: Interest rate: 9% per annum (all inclusive)
TENOR: To be determined by the company’s cash flow in line with BOI standard practice.
MORATORIUM: 6 –12 months
FUNDING STRUCTURE: FGN MSME Fund: 100%.
DISBURSEMENT: Phased disbursement in accordance with agreed milestones.
REPAYMENT SOURCE: From the company’s operations