Bank of Agriculture (BOA) Loan worth at least ₦5million
Introduction
The Bank of Agriculture (BOA) plays a pivotal role in supporting Nigeria’s agricultural sector. By offering various loan products, the BOA aims to empower farmers, agribusinesses, and other stakeholders within the agricultural value chain, ensuring that they have the financial resources necessary to succeed.
Agro-Processing Facility
The Agro-Processing Facility is designed to support the establishment of processing units, either in rural or urban areas. BOA’s funding under this facility is crucial for enhancing food security and reducing post-harvest losses, thereby stabilizing the agricultural value chain.
Direct Credit Product
The Direct Credit Product is available to individuals and corporate entities involved in agricultural production and related activities. The maximum loan amounts are ₦5 million for individuals and ₦50 million for corporations, with an interest rate of 14% for production activities and 20% for commodity marketing.
Equipment Leasing Product (ELP)
To improve the operational efficiency of agribusinesses, BOA offers the Equipment Leasing Product, which allows businesses to lease essential equipment. This facility aims to enhance productivity and ensure that Nigerian agricultural products meet international standards.
Export Finance Facility
The Export Finance Facility is a short-term credit solution that supports the export of agricultural products. By providing pre-shipment and post-shipment financing, BOA helps exporters secure new markets and generate foreign exchange.
Expand and Earn More (GEM)
This credit facility is specifically tailored for women in agriculture. The GEM facility offers loans of up to ₦1 million at a 12% interest rate, with no collateral required, making it easier for women to participate in the agricultural sector.
Haulage Credit Facility
BOA’s Haulage Credit Facility provides financing for businesses involved in the transportation of agricultural goods. This facility is essential for ensuring that agricultural products can be efficiently moved from production sites to markets.
Hides and Skin Revival Credit Facility
Through the Hides and Skin Revival Credit Facility, BOA supports the revitalization of the Nigerian leather industry. This facility provides funding for businesses in the hides and skin value chain, contributing to the country’s foreign exchange earnings.
Input Procurement Credit Facility
The Input Procurement Credit Facility supports businesses involved in the production and distribution of agricultural inputs. This facility ensures that farmers have access to the seeds, fertilizers, and other inputs they need to maximize their yields.
Inventory Credit Facility
This facility provides post-harvest financing by allowing farmers to store their produce as collateral for loans. By offering this facility, BOA helps farmers manage their cash flow and secure better prices for their produce.
Large Credit Product
The Large Credit Product is designed for large agribusinesses requiring significant capital investment. Loans of up to ₦1 billion are available, with repayment periods of up to five years, allowing businesses to undertake large-scale agricultural projects.
Ranching Development Credit Facility
To support livestock production in Nigeria, BOA offers the Ranching Development Credit Facility. This facility provides financing for businesses to develop ranches, contributing to the National Food Security program.
Sugar Revival Credit Facility
The Sugar Revival Credit Facility is part of the Nigeria Sugar Master Plan, which aims to boost local sugar production. BOA provides funding for individuals and corporations involved in the sugar value chain, ensuring that they have the resources needed to increase production.
Youth Agricultural Revolution in Nigeria (YARN)
The YARN facility encourages young Nigerians to participate in agriculture by offering credit facilities without requiring collateral. Young farmers can access up to ₦1 million at a 12.5% interest rate, provided they meet the NIRSAL Guidelines.
Eligibility and Application Process
To apply for a BOA loan, businesses must be engaged in agro-related activities and be registered with the Corporate Affairs Commission (CAC). Applicants are required to visit a BOA branch, submit the necessary documentation, and undergo a business assessment. Once approved, the loan is disbursed, subject to meeting the conditions outlined in the pre-approval letter.
