Bank of Agriculture (BOA) Loan worth at least ₦5million

Introduction

The Bank of Agriculture (BOA) is a government-owned institution dedicated to fostering the growth of agriculture and agro-related businesses in Nigeria. The bank provides a range of financial products designed to support agricultural production, processing, and trade, ensuring that agribusinesses can thrive and contribute to the nation’s economic development.

Agro-Processing Facility

The BOA’s Agro-Processing Facility is a critical initiative aimed at promoting the establishment of processing units, either in rural or urban settings. By funding these ventures, BOA aims to ensure food security nationwide and reduce post-harvest losses, which are a significant challenge in the agricultural value chain.

Direct Credit Product

This product is tailored to support various aspects of agricultural production. Individuals and corporations can access up to ₦5 million and ₦50 million respectively, with a repayment tenure that can extend up to five years. The interest rates vary depending on the nature of the activity, with agricultural production loans attracting a rate of 14%.

Equipment Leasing Product (ELP)

The BOA offers the Equipment Leasing Product to help agribusinesses enhance their operations by providing access to modern equipment. This facility is designed to improve production efficiency, leading to increased output and better quality products that can compete in international markets.

Export Finance Facility

Through the Export Finance Facility, the BOA supports the export of agricultural products, facilitating access to international markets and generating foreign exchange for the country. This short-term credit facility offers both pre-shipment financing and post-shipment discounting on invoices.

Expand and Earn More (GEM)

Targeted at empowering women in agriculture, the GEM facility offers small-scale farmers access to credit without the need for collateral. With a maximum loan amount of ₦1 million at a 12% interest rate, this product is designed to encourage more women to participate in the agricultural value chain.

Haulage Credit Facility

This product is specifically designed for businesses involved in the transportation of agricultural goods. The BOA provides loans for purchasing vehicles such as trailers and lorries, ensuring that agricultural products can be efficiently moved from farms to markets.

Hides and Skin Revival Credit Facility

Through this facility, the BOA aims to revitalize Nigeria’s leather industry by providing funds for the establishment and expansion of businesses within the hides and skin value chain, thereby boosting the country’s foreign exchange earnings through exports.

Input Procurement Credit Facility

This facility supports the procurement of agricultural inputs across the value chain, ensuring that businesses involved in seed production, fertilizer importation, and other input-related activities have the financial backing needed to operate effectively.

Inventory Credit Facility

Designed to provide post-harvest financing, the Inventory Credit Facility allows farmers to store their produce as collateral for loans. This helps in managing cash flow and enables farmers to maximize their income by selling their produce at favorable prices.

Large Credit Product

This facility is available to large agribusinesses requiring substantial capital investment. With loans ranging from ₦50 million to ₦1 billion, businesses can finance large-scale agricultural projects, with repayment periods extending up to five years.

Ranching Development Credit Facility

To support the National Food Security program, the BOA offers the Ranching Development Credit Facility, enabling businesses to invest in ranch development, which is crucial for increasing livestock production in Nigeria.

Sugar Revival Credit Facility

In line with the Nigeria Sugar Master Plan, the BOA provides funding for the sugar industry, ensuring that both individuals and corporations involved in the sugar value chain have access to the financial resources needed to boost local sugar production.

Youth Agricultural Revolution in Nigeria (YARN)

The YARN facility encourages youth participation in agribusiness by offering credit facilities without collateral. Young farmers can access up to ₦1 million at a 12.5% interest rate, provided they meet the requirements set out in the NIRSAL Guidelines.

Eligibility and Application Process

To be eligible for a BOA loan, businesses must be engaged in agro-related activities and be registered with the Corporate Affairs Commission (CAC). The application process involves visiting a BOA branch, submitting the required documentation, and undergoing a business assessment. Upon approval, the loan is disbursed, subject to meeting specific conditions outlined in the pre-approval letter.