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How To Get A Loan From The Bank Of Industry (BOI)


If you’re a business in Nigeria and you’re looking for external funding for your productive operations, you can apply to the Bank of Industry for that loan. The bank grants loans at relatively low interest rates and fair tenures to profitable enterprises that meet its criteria.

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A Brief Introduction To The Bank Of Industry

The Bank of Industry (BOI) is a public Development Finance Institution that’s owned by the Ministry of Finance, the Central Bank of Nigeria, and private stakeholders. The bank provides funding for SMEs and larger businesses seeking to expand their operations in the country.

Established in 2001, the BOI has helped finance many of Nigeria’s top SMEs, especially those in industries that the government considers critical to the nation’s economic growth and relative wellbeing.

The bank is headquartered in Lagos, a corporate office in Abuja, and 24 branches spread across Nigeria. There’s more information about them on their website.

What Kind Of Businesses Can Apply For A BOI Loan?

The BOI serves Micro, Small, and Medium Scale Enterprises (MSMEs), as well as Large Enterprises (LE). Although it provides loans to businesses in many sectors, it typically shows a preference for businesses in the following industries:

  • Agro-industries.
  • Textile and leather.
  • Solid minerals.
  • Polymer-based industries.
  • Information and Communication Technology (ICT) Services.
  • Foundries.

It has specific funds dedicated to companies in some of these industries, as well as entrepreneurs in defined demographics (e.g. the youth).

What Loan Amounts Are Available From The BOI?

The minimum loan provided for micro-enterprises by the BOI is ₦5 million. But the bank’s matching fund, operated in conjunction with state governments, allows for beneficiaries to receive lesser amounts. Bigger SMEs may access loans exceeding ₦10 million, and Large Enterprises may request amounts above ₦1 billion.


SMEs intending to get a loan from the BOI are expected to meet these criteria:

  • The project they want funding for will be executed using mostly materials sourced locally.
  • They can increase industrial output.
  • Can produce high-quality products for exportation.
  • Their operations drive regional integration.
  • They have the potential to employ a large number of people.
  • The projects to be financed are environmentally friendly.

Find our comprehensive listings of businesses in Nigeria here

Things You Should Have Before Applying For The Loan

The Bank of Industry has a pre-approval checklist for organizations seeking a loan from it. The list below is the checklist for SMEs applying for a loan worth less than ₦10 million.

  • A formal application letter and a completed loan application form.
  • Business plan containing, among other things, the CVs of people on the business’s management team.
  • Certificate and Form of Registration (photocopy).
  • Documentation of the sources and quotations for the raw materials, with quantities and prices.
  • Proforma Invoice for equipment to be bought.
  • Means of identification for the business’s top representatives, including four passport photographs each, BVN, and a photocopy of their International Passport, National ID, or Drivers’ License.
  • A one-year bank statement for the business.
  • A declaration of debts owed other banks, where they exist.
  • Two external guarantors—both individuals – with four passport photographs and officially recognized ID belonging to them, and a letter expressing their intention to guarantee the loan.

How To Apply For A BOI Loan

You can take these steps to apply for a BOI loan

  • Visit the BOI website to read about the specific type of loan you want to apply for.
  • Visit a BOI branch office near you to pick up an application form, or find it on the BOI website.
  • Fill the form.
  • Submit the completed form to the bank, along with all the documents previously mentioned.
  • The BOI vets the application and may undertake missions to ascertain the validity and viability of the applicant’s project.
  • If the BOI is satisfied that the applicant qualifies for the loan, it will issue the applicant an offer letter, containing the loan’s terms and conditions.
  • The loan is paid to the suppliers of the equipment required for the applicants’ project, or to other beneficiaries concerned.

Fees, Interest Rates, And Tenure

The BOI’s term loans attract interest rates of between 5% and 10%. Structured Working Capital comes with annual interest payments of between 12% and 15%.

Successful applicants may also have to pay an Appraisal Fee (1% of total loan), Commitment Fee (1%), Monitoring Fee (0.0125%), Insurance Charge, and Legal Fees.

Term loans have tenors spanning from 3-10 years; it’s 2 years for working capital. Moratoriums on loan payment last for between 6 and 12 months from the date of loan disbursement.

Final Words

Small businesses need all the financial help they can get. The paucity of SME funding is a major contributor to their demise in Nigeria. Thanks to the work done by institutions like the BOI, some of them are able to thrive in challenging business environments.

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Ikenna Nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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