List of Intervention Funds in Nigeria

List of Intervention Funds in Nigeria

Intervention funds are actions taken by the government or authorised organisations to achieve a variety of objectives, such as fostering economic growth, the creation of jobs, increasing or decreasing prices, resolving market imperfections, or fostering income disparity.
The Fund is an initiative of the Federal Government of Nigeria to offer Micro, Small and Medium Enterprises (MSME) subsidised loans at a single digit (9% annually) all inclusive interest rate. The Fund must also accommodate requests from SMEDAN made in accordance with the National Enterprise Development Program (NEDEP) Scheme.

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.

The fund is intended to be used by SMEs operating in the industrial and agro-processing sectors, with a focus on adding value to local raw resources.

There are various intervention funds in Nigeria that are available to qualifying citizens of the nation as loans or as equity.

• CBN AGRIC SMALL MEDIUM ENTERPRISE INVESTMENT SCHEME (AGMEIS)

This is one of the Federal Government’s efforts to stimulate the expansion of agricultural businesses and small to medium-sized enterprises (SME) in Nigeria with the goal of fostering long-term economic growth and the creation of jobs by offering qualifying residents affluent non-collateral loans. The AGMEIS distributes funds to individuals who successfully completed training at the Educational Development Institute (EDI) accredited by the NISRAL Microfinance Bank and whose applications were accessible in accordance with programme requirements. Agriculture, health, ICT, the creative industry, services and production, and manufacturing are some of the industries that profit from AGMEIS loans. The maximum facility amount is NGN 3,000,000, with a 36-month repayment period and a 5% annual interest rate.

• FGN SPECIAL INTERVENTION FUND FOR MSMES (NATIONAL DEVELOPMENT PROGRAMME)

The goal of this intervention fund is to increase economic activity in the small and medium-sized business (SME) sector by offering subsidised loans at an annual interest rate of 9% inclusive. Nigerian limited liability businesses, enterprises, and cooperatives make up the target market for the FGN Special Intervention Fund since they are acknowledged as being a key force behind industrialization, wealth development, and job possibilities. The loan tenure is set by the company’s cash flow in accordance with Bank of Industry (BOI) normal procedure, and the programme fund maximum is NGN 5.0 billion with a single obligor limit of NGN 20 million.

• NIGERIA YOUTH INVESTMENT FUND (NYIF)

The Federal Government’s NYIF project focuses on funding young people’s business ideas in an effort to develop long-lasting enterprises that will boost employment and encourage the economy of the nation. The NYIF, which targets people between the ages of 18 and 35, aims to increase youth and youth-owned companies’ access to financing for national development, provide training to build managerial potential, and create job possibilities to quell youth restlessness. After completing training at an Entrepreneurship Development Institute (EDI) designated by the Federal Ministry of Youth & Sports Development (FMYSD), qualified applicants get funding following a thorough evaluation in accordance with the Risk Assessment Criteria and programme standards.

Individuals and unregistered businesses are eligible for up to NGN 25 million, depending on the cash flow of the business, while registered businesses are eligible for up to NGN 3 million. The interest rate is an all-inclusive 5% per year. The longest loan term allowed is five years.

• N300 BILLION CBN POWER AND AIRLINE INTERVENTION FUND (PAIF)

This is a Bank of Industry (BOI) intervention fund designed to boost the aviation sector by giving credit to airlines, developing electric power projects, and enhancing the availability of electricity. These actions will also improve the supply of electricity, improve the employment situation, and raise living standards. Another goal of the CBN Power and Airline Fund is to provide channels for private sector investment in the aviation and power sectors.

• N235 BILLION CBN INTERVENTION FUND FOR MANUFACTURING RE-FINANCING AND RESTRUCTURING FACILITIES OF BANKS’ LOAN

By giving manufacturers access to financing and enhancing the financial standing of Deposit Money Banks, these measures are meant to promote the growth of the manufacturing sector of the economy. The Fund also aims to boost foreign exchange returns, diversify its source of income, and make sure that the industrial sector has access to the necessary inputs.

• N90 MILLION BUSINESS DEVELOPMENT FUND FOR WOMEN ( BUDFOW)

The Business Development Fund for Women, launched by the Federal Ministry of Women Affairs and Social Development, focuses on women-owned enterprises in the manufacturing, solar, local products trading, and service industries with significance to the manufacturing sector. The BUDFOW offers reasonable loans with an NGN 50 million maximum limit only for the purchase of assets.

• MICRO, SMALL AND MEDIUM ENTERPRISE DEVELOPMENT FUND (MSMEDF)

The agricultural value chain, renewable energy, trade and general commerce, services, and artisans are among the industries this fund is intended for. The CBN distributes this fund in collaboration with Participating Financial Institutions (PFIs), Deposit Money Banks (DMB), Bank of Industry, and Bank of Agriculture. The annual interest rate is set at 9%.

• NATIONAL PROGRAM FOR FOOD SECURITY (NPFS)

This Fund provides finance, implements projects, and keeps track of them in order to increase the productivity of farmers and agro-allied processors in the 36 states. Its name is The Bank of Industry.

PROGRAM LIMIT  N5.0 billion
SINGLE OBLIGOR LIMIT- N20.0 million

PRICING
Fees:
 Interest rate: 9% per annum (all inclusive)
 Legal Fee (where applicable)

TENOR
 To be determined by the company’s cashflow in line with
BOI standard practice.

MORATORIUM  6 – 12 months

FUNDING STRUCTURE
 FGN MSME Fund: 100%.