BoI to finance 1000 agric projects with N5bn

According to the bank, CAP fund is established as part of BoI’s efforts to enhance agribusiness and agro-processing activities in the country with plans to increase the production capacity and growth efficiency of the agric sector.
Speaking to the media at the unveiling of the fund in Lagos, BoI’s Managing Director/CEO, Mr. Adejare Olaoluwa, stated that the CAP fund was in fulfillment of the bank’s role as a financial institution saddled with the responsibility of upholding development of industries in Nigeria.
He explained that the fund will provide loans to beneficiaries to establish small-scale plants or mini-mills to process Nigeria’s agricultural products such as cassava, oil palm, paddy rice, groundnut, yam, maize, sorghum, cocoa, shea nut, plantain, cashew, hides and skin, meat, chicken and fish.
Olaoluwa said that the choice of these products was because they are agricultural products grown all over the country and have been selected to ensure even distribution across the 36 states of the country.
He said CAP fund is targeted at small and medium industries at the low-technology, labour intensive end of the agro-processing spectrum.
Olaoluwa also noted:“An inclusive growth is our primary consideration. It represents BoI’s first direct intervention in any sector. The fund is designed to enable BoI, being Nigeria’s leading development finance institution, play its catalyst role of paving the way for other financial institutions to follow. We are demonstrating to others how to lend to small and medium industries in the perceived high risk sectors of the economy.”
He disclosed that BoI has identified the priority products for each state, which are mainly grounded along the agricultural value chain with proper arrangement put in place to ensure even disbursement of the fund, as well as making sure that the fund gets to the target beneficiaries at a single digit interest rate of 9 per cent per annum.
The BoI boss also said that apart from a tripartite arrangement among the BoI, the equipment suppliers and the borrowers in a bid to enhance the agribusiness and agro-processing activities and to increase the production capacity of the country, various partners have also been assembled for the effective operation of the fund.