BOI: COTTAGE AGRO PROCESSING FUND (CAP FUND)

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By Abdulsalam Omowale

BOI —This Fund provides Agro processors with access to finance and technology to convert the nation’s agriculture products to economic prosperity.

What is the Cottage Agro Processing (CAP) Fund?

BOI: COTTAGE AGRO PROCESSING FUND (CAP FUND) BOI Bank of Industry1
The Bank of Industry’s Cottage Agro Processing (CAP) Fund is designed to finance the establishment of cottage agro processing plants that produce food products and other intermediate products for industries within and outside the Staple Crop Processing Zones (SCPZs) across Nigeria.
The Fund will help tackle the challenges of limited capacity for processing and preservation which has cause losses and wastage of the abundant agricultural products in Nigeria across all the states of the federation and the FCT.
The scheme is designed to facilitate the processing of the major agricultural products into various derivative products including, but not limited to, the following:
Agricultural Produce      Derivative Products
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, Cream, Cheese.
10. Cocoa Cake, Butter, Powder
11. Shea Nut Shea Butter for Cosmetics, Confectionaries, and Pharmaceuticals
12. Plantain Flour, Chips
13. Cashew Cashew Nuts
14. Tomato Tomato Paste, Tomato Ketchup

Why CAP Fund?

BOI: COTTAGE AGRO PROCESSING FUND (CAP FUND) BOI Bank of Industry
Agriculture is the mainstay of the Nigerian economy, providing employment for over 60% of its population;
Every state is blessed with agricultural produce for which they enjoy comparative advantage;
Agro processing will ensure that Nigeria converts its comparative advantage in the agricultural sector into competitive advantage along the diverse agro value chains;
This intervention aligns with the Federal Government’s Agricultural Transformation Agenda, the National Enterprise Development Programme (NEDEP), and the Nigeria Industrial Revolution Plan (NIRP)
To enable Nigerians maximise the benefits of value addition which includes employment generation and wealth creation.

Fund Utilization

BOI: COTTAGE AGRO PROCESSING FUND (CAP FUND) Naira2
The fund shall be deployed for the supply and installation of equipment for an estimated 1,000 (One Thousand) cottage mills spread across the country
  • Projects are expected to be located in the areas with comparative advantages in terms of the available agricultural raw material within each state.
  • This is expected to create a minimum of 5,000 direct and 15,000 indirect (totaling 20,000) jobs for Nigerians.

Other Product Features

BOI: COTTAGE AGRO PROCESSING FUND (CAP FUND) RICE 2BFARMING6
  • Single digit interest rate (9%)
  • 5-year tenor with 6-month moratorium
  • Beneficiaries are expected to make a 20% equity contribution.
  • Applicants must satisfy all relevant statutory and regulatory requirements as applicable.
  • Reputable equipment suppliers shall be identified for the supply, installation, commissioning and maintenance of the processing equipment, which come with a warranty of 3 years.
  • SME-friendly commercial banks have been identified for the provision of working capital loans at competitive interest rates.
BOI, commercial banks, the equipment suppliers and the beneficiaries shall execute relevant legal agreements.

Capacity Building

All applicants of the CAP Fund will be required to undergo entrepreneurial training at any of the existing accredited Enterprise Development Centres (EDC) as part of the loan application process.

States and Agricultural produce considered

States Agricultural Produce Considered
Abia Oil Palm, Cassava, Cashew
Anambra Oil Palm, Cassava, Yam
Adamawa Maize, Rice, Livestock
Akwa Ibom Oil Palm, Cassava, Cocoa
Bauchi Millet, Rice, Livestock
Bayelsa Kassava, Aquaculture, Plantain
Benue Rice, Yam, Cassava
Borno Aquaculture, Rice, Livestock
Cross River Oil Palm, Cassava, Rice,
Delta Oil Palm, Cassava, Aquaculture
Edo Oil Palm, Cassava, Yam
Ekiti Cocoa, Rice, Cassava
Ebonyi Oil Palm, Cassava, Rice
Enugu Oil Palm, Cassava, Rice
Gombe Cotton, Rice, Groundnut
Imo Oil Palm, Cassava, Cashew
Jigawa Rice, Groundnut, Livestock
Kaduna Rice, Maize, Ginger
Kano Tomatoes, Groundnut, Livestock
Katsina Groundnut, Rice, Livestock
Kebbi Rice, Maize, Livestock
Kogi Cassava, Cashew, Oil Palm
Kwara Rice, Aquaculture, Coconut
Nassarawa Cassava, Rice, Yam
Niger Rice, Sorghum, Shea Nut
Ogun Cocoa, Oil Palm, Rice
Ondo Cocoa, Oil Palm, Cassava
Osun Oil Palm, Cassava, Cocoa
Oyo Oil Palm, Cassava, Cocoa
Plateau Maize, Cassava, Rice
Rivers Oil Palm, Cassava, Aquaculture
Sokoto Beans, Sorghum, Leather Products
Taraba Rice, Cassava, Livestock
Yobe Groundnut, Maize, Sorghum
Zamfara Maize, Rice, Cotton
FCT Rice, Cassava, Yam

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