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Fish Farming: BoI for Fish Farmers in Nigeria.

·
Promotion of fish farming in Nigeria in order to meet the
huge
supply gap that is currently being met by
importation.
·
Reduction of post-harvest lost by farmer through the
processing.
PURPOSE/
RATIONALE

·
Promotion of foreign exchange savings by increasing
domestic
fish production.
·

Employment generation.

·
Provision of the fishery sub-sector with a source of
long-term
funding at a reasonable cost thereby improving
its
competitiveness.
TARGET
MARKET/
CRITERIA

The fund will be accessed by limited liability companies
and enterprises engaged in fish farming and/or
processing in all parts of the country as part of the SME
Aquaculture and Fish Processing Clusters. Appendix II
provides a list of some of the key players in the fish value
chain.
Each project along the value chain is expected to create 48 –
120 jobs as follows:

PROJECTED
IMPACT
Direct
Indirect
Total
PROGRAM
LIMIT
MAXIMUM
OBLIGOR
LIMIT
PRICING

N1.0 billion

Up to N50.0 million
Term Loan
Interest Rate:
·

9% per annum.

Small
8
40
48

Medium
20
100
120

Fees:

1% Processing fee

TENOR

3 – 5 years

MORATORIUM

6 – 12 months (from date of loan disbursement)

COLLATERAL/ Loan
SUPPORT
Amount
(N’m)
5.0 – 10.0

Security Arrangement

1. Specific charge over the equipment
financed.
2. Irrevocable Personal Guarantee of the
Chief Promoter of the company.
3. Post-dated cheques of the company or the
Chief Promoter, issued in line with the
amortization schedule.
Two (2) external guarantors acceptable to BOI
who must belong to any of the following
categories:

a)
Senior Civil Servant (Level 12 and
above).
b)
Bankers (not below the level of Assistant
Manager) and must have been confirmed by
current employer.
c)
Professionals i.e. Medical Doctors, Lawyers,
Accountants, Engineers, etc.
d)
Senior Staff (not less than a manager) of
reputable quoted Companies, International Oil
Companies, Telecommunications Companies
(GSM providers)
e)
The guarantees must be supported with a
Notarized Statement of Net worth acceptable to

BOI.

1. All assets debenture.
2. Irrevocable Personal Guarantee of the
Chief Promoter of the company.
3. One (1) external guarantor acceptable to
BOI who must belong to any of the
following categories:
a)
12 and above).

Senior Civil Servant (Level

b)
Bankers (not below the level of Assistant
Manager) and must have been confirmed by
current employer.
>10.0 ≤
20.0

c)
Professionals i.e. Medical Doctors, Lawyers,
Accountants, Engineers, etc.
d)
Senior Staff (not less than a manager) of
reputable quoted Companies, International Oil
Companies, Telecommunications Companies
(GSM providers)
e)
The guarantees must be supported with a
Notarized Statement of Net worth acceptable to
BOI.
Or
1. Bank Guarantee from Commercial Banks
acceptable to BOI.

> 20.0
1. All assets debenture.
2. Legal mortgage on pledged property.
3. Irrevocable Personal Guarantee of the
Chief Promoter of the company.
Or
Bank Guarantee from Commercial Banks

acceptable to BOI.

Loan –
90% maximum (inclusive of working
capital from BOI or the SME-friendly banks).

FUNDING

Contribution by the promoter – 10% (minimum)

STRUCTURE

The estimated values of the existing fish pond,
structures and/or relevant processing equipment may be
applied against the borrower’s 10% contribution. The
items must be valued professionally by any of BOI’s
accredited valuers.

Term Loan:

DISBURSEME
NT

In accordance with agreed milestones and shall be backed by
provision of performance bond or advanced payment bond by
the equipment supplier, where an advance payment is
demanded.
Working Capital:

After successful installation and testing of the equipment
and payment shall be made directly to raw materials
suppliers.

REPAYMENT
SOURCE

From cash flows generated by the customer’s operations.

REPAYMENT
MODE

Monthly payment of interest and principal.