A presentation by Mr. Sonny Ekedayen at an interactive session organized by The

Lagos Chamber of Commerce and Industry on Wednesday 13th June, 2012.

BANK OF INDUSTRY LIMITEDBOI was established in October 2001 following the

reconstruction of the Nigerian Industrial Development Bank (NDIB) which had been in existence since 1964 as one of the oldest Development Finance Institution (DFI) in Nigeria.

BOI’s core mandate is the provision of financial assistance for the establishment of large medium and small projects, as well as the expansion, diversification and modernization of existing enterprises and rehabilitation of ailing industries.

The Bank’s vision is to be a leading self sustaining development finance institution operating under sound management and banking principles that would promote the emergence and development of a virile industrial sector in Nigeria.

The Bank’s mission is to transform Nigeria's industrial sector and integrate it into the global economy by providing finance and business support services to existing and new industries to attain modern capabilities to produce goods and services that are competitive in both domestic and external markets.

SHARE CAPITAL AND SHAREHOLDING STRUCTURE

Ministry of Finance Incorporated (MOFI)58.86%

Central Bank of Nigeria41.12%

Private Nigerians (42Nos) 0.02% 100%

PRODUCT OFFERINGMicro Enterprises [Cooperative loans].Small and Medium Enterprises [SME Loans].Large Enterprises [LE By ticket].Leasing [Leasing Company (LECON)].Business Advisory, Investment and

Trusteeship BOI-Trust & Investment Company Ltd.

Insurance Brokerage Services.

DANGOTE GROUP OVERVIEW The Dangote Group is one of the most diversified business

conglomerates in Africa with a hard-earned reputation for excellent business practices and products' quality with its operational headquarters in the bustling metropolis of Lagos, Nigeria in West Africa.

The Group's activities encompass:

Cement - Manufacturing / ImportingSugar - Manufacturing & RefiningSalt - RefiningFlour & Semolina - MillingPasta - Manufacturing Noodles - ManufacturingPoly Products - ManufacturingLogistics - Port Management and HaulageReal EstateDangote Foundation

Since inception, the Group has experienced phenomenal growth on account of quality of its goods and services, its focus on cost leadership and efficiency of its human capital. Today, Dangote Group is a multi-billion Naira company poised to reach new heights, in every endeavour competing with itself to better the past.

The Group's core business focus is to provide local, value added products and services that meet the 'basic needs' of the populace. Through the construction and operation of large scale manufacturing facilities in Nigeria and across Africa, the Group is focused on building local manufacturing capacity to generate employment and provide goods for the people.

BOI/DANGOTE SME FUNDDangote Group in partnership with the Bank of

Industry (BOI) initiated a =N= 10 billion Micro, Small and Medium Enterprises (MSMEs) Fund for job creation through its Dangote Foundation.

The fund was launched last year with =N 5 billion, N 2.5 billion each was contributed by Dangote and Bank of Industry (BOI).

Based on the successful take off of the first phase, the fund is expected to grow to =N=20 billion when it gains momentum.

TARGET BENEFICIARIESBOI primarily funds the capital item acquisition,

i.e. the purchase of items of plant and machinery for industrial sub sectors such as:

Agro-industries, textile and leatherPolymer –based industriesSolid mineralsFoundriesInformation communication technology (ICT)

services

However the BOI/Dangote Fund would in addition cater for:

• Commerce/Trading in made in Nigeria goods • Services

BOI and Dangote intend to commit =N=10 billion each. The interest rate for the funds is 5 percent.

The fund is designed to support four categories of borrowers namely:

1)Members of Cooperative Associations2)Stand alone or Individual borrowers3)Small and Medium Enterprises

SPECIFIC FEATURE OF EACH CATEGORY OF POTENTIAL BENEFICIARIESMembers of Cooperative Associations1)Clusters2)Tenants of Industrial parks or centers such as

IDCS or any other similar estate.3)Linked to an existing value or supply chain.4)Membership of umbrella association or reputable

NGO5)Products of reputable Entrepreneurs Training

Institutions (such as SMEDAN, LBS, EDCs, Directorate of Employment etc)

6)Products of recognized Skill Acquisition Centres7)A cooperative with an existing line of business.8)Members of the cooperative should be between

10 to 20 members.

9) Members should be in a manufacturing or processing business unit.

10)Maximumloan amount to each group will not exceed =N= 10 million.

11)All members are required to fill the BOI Questionnaire Form.

12)Tenor/Moratium to be structured based on amount of loan vis-a-vis cash flow and nature of business.

13)Subsidized interest of 5% per annum payable monthly (subject to review)

14)Processing Fee – 1% of the loan value payable at the time of collection of the letter of offer. It is non refundable.

16) Source(s) and repayment term –To be based on the nature of business and can be structured based on weekly or monthly repayment as may be agreed.

17) Security Arrangement which shall include: Deposit of 10% of the loan amount in an interest

yielding joint account opened by the cooperative society with a designated bank with a representative each of BOI and the society as joint signatories.

Joint and several guarantees of the beneficiary members of the Society of BOI loans.

Personal Guarantees of reputable personalities in the society.

Opening of an account with a designated commercial bank by members of the cooperative for lodgement of their sales proceeds from individual transactions (after loan acceptance).

Direct deductions of principal and interest as they fall due from accounts of the group into designated BOI’s account via sweep transfers.

Lien on stock of trade and items of equipment, where applicable.

STAND ALONE OR INDIVIDUAL BORROWERS1)Company should be in a manufacturing or

processing business unit, trading or service industry.2)Tenor/ Moratorium is dependent on loan amount,

nature of business and cash flow.3)Subsidized interest rate of 5% per annum payable

monthly (subject to review).4)Processing Fee – 1% of the loan value payable at the

time of collection of the letter of offer. It is non refundable.

5)Track record through the submission of audited/ management accounts/affairs.

6)Evidence of association with a Bank (on borrowing and non-borrowing basis) through submission of statement of accounts.

7)Equity contribution of minimum 0f 20% loan amount (including security deposit)

8)Must belong to value or supply chain.

9) Security arrangement which shall include: Deposit of 10% of the loan amount in an interest

yielding joint account opened by the company with a designated bank with a representative each of BOI and the company as joint signatories.

Personal Guarantees of reputable personalities in the society.

Opening of an account with a designated commercial bank by the company for lodgement of its sales proceeds from transactions (after loan acceptance).

Direct deductions of principal and interest as they fall due from accounts of the company into designated BOI’s account via sweep transfers.

Lien on stock of trade and items of equipment, where applicable.

Domiciliation/ISPO Evidence of availability of collateral.

SMALL AND MEDIUM ENTERPRISES (SMEs)1)The Company must be incorporated as a limited

liability company.2)Filed Annual Returns of the Company at the

Corporate Affairs Commission (CAC).3)Provide business plan (feasibility study report)4)Submission of quotation for the items of plant and

machinery (2 0r 3 quotations from different sources).

5)Three years most recent audited accounts of the company (for existing company).

6)Long association with a bank with the submission of statement of account for the past six months.

7)Evidence of availability of adequate security including landed properties with valid title documents, corporate guarantee of reputable companies or bank guarantee.

BOI’S OTHER PRODUCTS AND SERVICESBOI’s core mandate is the provision of financial

assistance for the establishment of large medium and small projects, as well as the expansion, diversification and modernization of existing enterprises and rehabilitation of ailing industries.

Funding of working capital request is accessible only under the various specialized managed funds schemes superintended by the bank such as:

Nigerian Automotive Council Fund (NAC)Rice Processing FundCotton Textile and Garment FundSugar FundBOI/Dangote Fund

CBN Intervention Fund on SME, Power & Aviation

Nigerian Small Growing Business Loan SchemeEntertainment FundSME Development Fund on behalf of State

Governments.Business Development Fund for women

(BUDFOW) managed for and on behalf of the Federal Ministry of Women Affairs & Youth Development.

Small and Medium Enterprises Development Agency Fund (SMEDAN)

BOI ZONAL REPRESENTATIONThe Bank of Industry has its head office in

Lagos and a corporate office in Abuja. Additionally it operates out of Seven Zonal Offices spread across the country as follows:

Abuja Zonal OfficeAba Zonal OfficeAkure Zonal OfficeAsaba Zonal OfficeBauchi Zonal OfficeKaduna Zonal OfficeLagos Zonal Office

THANK YOU