GRADUATE ENTREPRENEURSHIP FUND (GEF)

The Graduate Entrepreneurship Fund (GEF) scheme is the Bank’s first youth programme which was launched in October 2015 and is facilitated by the BOI’s partner Entrepreneurship Development Centers/Institutions in collaboration with the National Youth Service Corps (NYSC) Directorate. This initiative is specifically targeted at youths undergoing the mandatory one (1) year national service programme.

The aim is to change the job-seeking mindset of Nigerian youths to entrepreneurship and self-reliance by encouraging them to develop skills for self-employment and to contribute to the accelerated growth of the national economy. The GEF Programme comprises the following:

  • Selection/screening of the NYSC members that will participate in the capacity-building process through a questionnaire to be administered on the BOI online portal.
  • 4 days of intensive training on:
    • Generating a business idea (value proposition)
    • How to run a profitable business (Business Model)
    • Basic financial record keeping.
  •  Financial support for those with bankable business ideas within BOI’s SME clusters.

Eligibility Criteria

  • This product will be available to serving NYSC members that have successfully passed through the following stages:
    • Screening process
    • Attended the capacity-building programme developed specifically for the prospects under GEF.
    • Submitted a bankable business plan in respect of any of the Bank’s identified 40 SME clusters listed in Appendix I. (Any subsequent addition to the Bank’s identified cluster shall also be included)

Loan Requirements

  • Specific charge over the equipment (present and future).
  • Lien on the NYSC discharge certificate
  • Undertaking by the NYSC Directorate not to release the discharge certificate until the loan is liquidated.
  • One (1) external guarantor acceptable to BOI who must belong to any of the following categories:
    • Senior Civil Servant (Level 7 and above).
    • Bankers (not below the level of banking Officer), and must have been confirmed by current employer.
    • Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.
    • Senior Staff of reputable quoted Companies, International Oil Companies, and Telecommunications Companies (GSM providers).
    •  Elected public servants/administrators.
    • Reputable entrepreneurs with ongoing entities and registered business names.
    • Clergymen.

The guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI.

Loan Documentation Required

Customers are required to open an account with the Bank of Industry before application can commence. The documents needed for an account to be opened are listed below. A customer identification number will be created at the end of the account opening process.

An account can be opened by completing an account opening form and submitting all the required documents:

ACCOUNT OPENING REQUIREMENT LIST

  • Schedule of the shareholders signed by the company secretary. (Shareholders Register) for new customers and a confirmation of earlier submission for returning customers
  • Full Incorporation Documents:
    • Photocopy of Certificate of Incorporation
    • Certified true copy of Memorandum and Articles of Association
    • Forms CAC 2.5 (Allotment of Shares)
    • CAC 2.3 (Particulars of Directors)
    • CAC 2.1 (Appointment of Company Secretary)
  • Means of identification of all Directors of the company (i.e., photocopy of International Passport/Driver’s License and National Identity Card) and BVN of the Executive Directors. (**note that ID of all Directors are needed for compliance and credit search)

LOAN APPLICATION / APPROVAL REQUIREMENT LIST

  • Formal Loan Application on Letterhead
  • Duly completed Loan Application Form
  • Feasibility Study Report on the project to be financed stating write-up on technology and manufacturing process(s), etc.
  • Quotation/Proforma Invoice for the supply of items of Machinery and Equipment. Sources and quotations for Raw Materials expressed in quantity and amount
  • Security: Bank Guarantee, a letter of intent for Bank Guarantee (with Risk Management being part of the authorized signatories) of the commercial bank issuing the guarantee. Any exception should be supported with the Bank’s approval limits OR
    • Legal Mortgage
    • Photocopy of the title document(s) to the property being pledged e.g Statutory Certificate of Occupancy/Deed of Assignment/Conveyance/Deed of sublease
    • Valuation Report on the Property Proposed as Security from BOI’s accredited value
    • Lease agreement, if operating from a rented premises

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