The FGN Special Intervention Fund For MSME is a Federal Government of Nigeria initiative to provide subsidized loans to SMEs at single digit (9% per annum) all-inclusive interest rate. The Fund is also to cater for applications received from SMEDAN under the National Enterprise Development Programme (NEDEP) Scheme.
Economic Rationale: The Fund is aimed at stimulating economic activity in the SME sub-sector being the major drivers of industrialization, wealth and job creation.
Target Market/ Criteria: 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.
Projected Impact: The fund is to be utilized for SMEs engaged in manufacturing and agro-processing businesses with an emphasis on value addition to local raw materials.
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 cash flow in line with BOI standard practice.
Moratorium: 6 – 12 months
Funding Structure: Fgn Msme Fund: 100%.
Disbursement: Phased disbursement in accordance with agreed milestones.
Repayment Source: From the company’s operations.