By Abdulsalam Omowale
BOI —This Fund provides Agro processors with access to finance and technology to convert the nation’s agriculture products to economic prosperity.
What is the Cottage Agro Processing (CAP) Fund?
The Bank of Industry’s Cottage Agro Processing (CAP) Fund is designed to finance the establishment of cottage agro processing plants that produce food products and other intermediate products for industries within and outside the Staple Crop Processing Zones (SCPZs) across Nigeria.
The Fund will help tackle the challenges of limited capacity for processing and preservation which has cause losses and wastage of the abundant agricultural products in Nigeria across all the states of the federation and the FCT.
The scheme is designed to facilitate the processing of the major agricultural products into various derivative products including, but not limited to, the following:
| Agricultural Produce | Derivative Products | |
| 1. | Cassava | Cassava flour, Chips, Starch, Garri, Fufu. |
| 2. | Oil Palm | Palm Oil, Palm Kernel Oil, Palm Kernel Cake. |
| 3. | Rice Paddy | Rice, Flour |
| 4. | Groundnut | Groundnut Oil, Groundnut Cake. |
| 5. | Yam | Yam Flour, Chips |
| 6. | Maize | Corn Flour, Starch, Livestock Feed |
| 7. | Sorghum | Sorghum Flour, Syrup, Sorghum Brewers Grain |
| 8. | Aquaculture | Smoked Fish, Fish Fillet. |
| 9. | Livestock | Leather Products, Poultry, Milk, Yoghurt, Butter, Cream, Cheese. |
| 10. | Cocoa | Cake, Butter, Powder |
| 11. | Shea Nut | Shea Butter for Cosmetics, Confectionaries, and Pharmaceuticals |
| 12. | Plantain | Flour, Chips |
| 13. | Cashew | Cashew Nuts |
| 14. | Tomato | Tomato Paste, Tomato Ketchup |
Why CAP Fund?
Agriculture is the mainstay of the Nigerian economy, providing employment for over 60% of its population;
Every state is blessed with agricultural produce for which they enjoy comparative advantage;
Agro processing will ensure that Nigeria converts its comparative advantage in the agricultural sector into competitive advantage along the diverse agro value chains;
This intervention aligns with the Federal Government’s Agricultural Transformation Agenda, the National Enterprise Development Programme (NEDEP), and the Nigeria Industrial Revolution Plan (NIRP)
To enable Nigerians maximise the benefits of value addition which includes employment generation and wealth creation.
Fund Utilization
The fund shall be deployed for the supply and installation of equipment for an estimated 1,000 (One Thousand) cottage mills spread across the country
- Projects are expected to be located in the areas with comparative advantages in terms of the available agricultural raw material within each state.
- This is expected to create a minimum of 5,000 direct and 15,000 indirect (totaling 20,000) jobs for Nigerians.
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Other Product Features
- Single digit interest rate (9%)
- 5-year tenor with 6-month moratorium
- Beneficiaries are expected to make a 20% equity contribution.
- Applicants must satisfy all relevant statutory and regulatory requirements as applicable.
- Reputable equipment suppliers shall be identified for the supply, installation, commissioning and maintenance of the processing equipment, which come with a warranty of 3 years.
- SME-friendly commercial banks have been identified for the provision of working capital loans at competitive interest rates.
BOI, commercial banks, the equipment suppliers and the beneficiaries shall execute relevant legal agreements.
Capacity Building
TO APPLY FOR Fund CLICK HERE
States and Agricultural produce considered
| States | Agricultural Produce Considered |
| Abia | Oil Palm, Cassava, Cashew |
| Anambra | Oil Palm, Cassava, Yam |
| Adamawa | Maize, Rice, Livestock |
| Akwa Ibom | Oil Palm, Cassava, Cocoa |
| Bauchi | Millet, Rice, Livestock |
| Bayelsa | Kassava, Aquaculture, Plantain |
| Benue | Rice, Yam, Cassava |
| Borno | Aquaculture, Rice, Livestock |
| Cross River | Oil Palm, Cassava, Rice, |
| Delta | Oil Palm, Cassava, Aquaculture |
| Edo | Oil Palm, Cassava, Yam |
| Ekiti | Cocoa, Rice, Cassava |
| Ebonyi | Oil Palm, Cassava, Rice |
| Enugu | Oil Palm, Cassava, Rice |
| Gombe | Cotton, Rice, Groundnut |
| Imo | Oil Palm, Cassava, Cashew |
| Jigawa | Rice, Groundnut, Livestock |
| Kaduna | Rice, Maize, Ginger |
| Kano | Tomatoes, Groundnut, Livestock |
| Katsina | Groundnut, Rice, Livestock |
| Kebbi | Rice, Maize, Livestock |
| Kogi | Cassava, Cashew, Oil Palm |
| Kwara | Rice, Aquaculture, Coconut |
| Nassarawa | Cassava, Rice, Yam |
| Niger | Rice, Sorghum, Shea Nut |
| Ogun | Cocoa, Oil Palm, Rice |
| Ondo | Cocoa, Oil Palm, Cassava |
| Osun | Oil Palm, Cassava, Cocoa |
| Oyo | Oil Palm, Cassava, Cocoa |
| Plateau | Maize, Cassava, Rice |
| Rivers | Oil Palm, Cassava, Aquaculture |
| Sokoto | Beans, Sorghum, Leather Products |
| Taraba | Rice, Cassava, Livestock |
| Yobe | Groundnut, Maize, Sorghum |
| Zamfara | Maize, Rice, Cotton |
| FCT | Rice, Cassava, Yam
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