Abiola Odutola
It is celebration time for stakeholders in the Cottage Agro industry as the Bank of Industry, BOI, meets their pressing needs.
The financial institution announced through Rasheed Olaoluwa, its managing director, that operators in the sector now have access to its Cottage Agro Processing, CAP, Fund worth N5 billion.
Olaoluwa explained that the scheme, which is the first phase, is targeted at small and medium industries at the low-technology, labour intensive end of the agro-processing spectrum.
The BOI boss added that all loan applicants must present viable business plans that must define the product, its potential consumers, problem(s) it will address, primary and secondary sources of energy to power the plant among others.
“The equipment supplier will be accredited by BOI, will provide a performance bond and enter into a maintenance agreement with us,” he said.
The fund, which is to empower about 1,000 projects, is designed for priority products for each state across the nation.
Olaoluwa stated that the bank has assembled a number of partners for the effective operation of the fund.
“The projects financed will be located very close to the source of the agricultural products to be processed. The fund will create a total of 20,000 direct and indirect jobs,” he projected.
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