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?

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.CassavaCassava flour, Chips, Starch, Garri, Fufu.
2.Oil PalmPalm Oil, Palm Kernel  Oil, Palm Kernel Cake.
3.Rice PaddyRice, Flour
4.GroundnutGroundnut Oil, Groundnut Cake.
5.YamYam Flour, Chips
6.MaizeCorn Flour, Starch, Livestock Feed
7.SorghumSorghum Flour, Syrup, Sorghum Brewers Grain
8.AquacultureSmoked Fish, Fish Fillet.
9.LivestockLeather Products, Poultry, Milk, Yoghurt, Butter, Cream, Cheese.
10.CocoaCake, Butter, Powder
11.Shea NutShea Butter for Cosmetics, Confectionaries, and Pharmaceuticals
12.PlantainFlour, Chips
13.CashewCashew Nuts
14.TomatoTomato Paste, Tomato Ketchup

Table of Contents

Why CAP Fund?

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

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

  • 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

StatesAgricultural Produce Considered
AbiaOil Palm, Cassava, Cashew
AnambraOil Palm, Cassava, Yam
AdamawaMaize, Rice, Livestock
Akwa IbomOil Palm, Cassava, Cocoa
BauchiMillet, Rice, Livestock
BayelsaKassava, Aquaculture, Plantain
BenueRice, Yam, Cassava
BornoAquaculture, Rice, Livestock
Cross RiverOil Palm, Cassava, Rice,
DeltaOil Palm, Cassava, Aquaculture
EdoOil Palm, Cassava, Yam
EkitiCocoa, Rice, Cassava
EbonyiOil Palm, Cassava, Rice
EnuguOil Palm, Cassava, Rice
GombeCotton, Rice, Groundnut
ImoOil Palm, Cassava, Cashew
JigawaRice, Groundnut, Livestock
KadunaRice, Maize, Ginger
KanoTomatoes, Groundnut, Livestock
KatsinaGroundnut, Rice, Livestock
KebbiRice, Maize, Livestock
KogiCassava, Cashew, Oil Palm
KwaraRice, Aquaculture, Coconut
NassarawaCassava, Rice, Yam
NigerRice, Sorghum, Shea Nut
OgunCocoa, Oil Palm, Rice
OndoCocoa, Oil Palm, Cassava
OsunOil Palm, Cassava, Cocoa
OyoOil Palm, Cassava, Cocoa
PlateauMaize, Cassava, Rice
RiversOil Palm, Cassava, Aquaculture
SokotoBeans, Sorghum, Leather Products
TarabaRice, Cassava, Livestock
YobeGroundnut, Maize, Sorghum
ZamfaraMaize, Rice, Cotton
FCTRice, Cassava, Yam

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