“We plan to finance about 1,000 projects under this Fund. We have identified the priority products for each state and have assembled a number of partners for the effective operation of this Fund” ~ Rasheed  Olaoluwa, Managing Director, Bank of Industry Limited, Nigeria


About the Cottage Agro Processing (CAP) Fund

 BOI is establishing a Cottage Agro-Processors (CAP) Fund to support the establishment of cottage agro processing plants that will produce food products and raw materials for industries within and outside the Staple Crop Processing Zones (SCPZs) across Nigeria.

The Rationale:

  • Agriculture is the main stay of the Nigerian economy.
  • Every state is blessed with agricultural produce where it has comparative advantage.
  • The sector enjoys the support of the Federal Government.
  • Aligns with the Federal Governments Agricultural Transformation Agenda, National Enterprise Development Programme, Nigeria Industrial Revolution Plan, etc.
  • Increase revenue through fees and interest income.
  • Enhance goodwill by supporting agricultural production and rural development.
  • The anticipated risks are dimensioned and mitigated by the transaction structure.
  • Create employment.

 Who can access the Fund?

The Fund will be accessed by Limited Liability Companies, Enterprises and Cooperative Societies engaged in the processing of agricultural products either into finished food products or raw materials for industry or for the export market.

What are the projected Impacts of the Fund:

The fund shall be deployed for the supply and installation of equipment for an estimated 1,000 (One thousand) cottage mills across the country. A minimum number of 20-30 mills per state, including the Federal Capital Territory (FCT). Projects must be located in the areas with comparative advantages in terms of the available agricultural raw materials within each state. This is expected to create a minimum of 5,000 direct and 15,000 indirect jobs for Nigerians: total (20,000).

Requirements to Access the Fund:

A comprehensive list of the equipment required for the processing of each derivative, estimated cost as well as the list of suppliers and their locations can be downloaded here.

Other products not listed, but are available in abundance can be considered on their merit.

Access to Market:

As part of the requirements, each applicant is to provide the following market related information:

  • Identification of the basic agricultural raw material(s) to be used, the location where the raw materials will be sourced from and the annual volume available in that location
  • Product offering (What end-product will the agricultural products be processed into as food products and/or raw materials for industry use?)
  • Target customers
  • Value proposition (what are the key selling points?)
  • Strategies for generating revenue

Terms and Procedures to Access the Cottage Agro Processing (CAP) Fund:

  • Interest Rate: 9% per annum
  • Fees: 1% Processing fee (full payment at approval and subsequent payment on the outstanding balance at the beginning of each year)
  • Tenor: 5 Years
  • Moratorium: 6 months (from date of loan disbursement)


  • Customer requests for the facility and if approved an offer is made by BOI to customer based on approved terms and conditions.
  • Customer accepts the offer and meets all conditions precedent to draw down, including deposit of 20% Equity contribution into designated account
  • BOI disburses the 70% loan in tranches direct to approved contractors and suppliers in line with agreed milestones
  • Upon completion, MSME-friendly partner bank provides 10% working capital
  • Customer is responsible for running of the plant and full repayment.


CAP Fund

I am ready where do I start from?

Download all Requisite Documents now!

Cottage Agro Processing (CAP) Fund in the news:


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Blossom Nnodim: Public Relations Actor. Niche Blogger at www.blossomnnodim.com Focus: Social Good| Social Media| Social Technology