The Bank of Industry (BOI) runs the Rural Area Programme on Investment for Development (RAPID), offering loans of up to ₦10 million at 5% interest a year to registered small businesses and cooperatives in rural and economically disadvantaged areas of Nigeria. It’s one of the cheapest business loans available in Nigeria, but it is a loan, not a grant, so it must be repaid and needs guarantors.
Applications are ongoing: there’s no fixed deadline.
Key Details
- Lender: Bank of Industry (BOI)
- Programme: RAPID (Rural Area Programme on Investment for Development)
- Loan amount: up to ₦10 million
- Interest: 5% per year, including all processing fees
- Tenor: up to 3 years
- Moratorium: 3 months on interest and 6 months on principal
- Use of funds: equipment and other assets, plus raw materials for production
- Deadline: ongoing
Benefits
- low-cost finance: 5% a year, far below typical commercial bank rates
- a grace period before repayments start
- business advisory services and training in management, financial literacy, marketing and technology
- support from BOI-appointed Business Development Service Providers (BDSPs) with applications and appraisals
Eligibility
- a registered business name (enterprise) or cooperative society
- operating in a rural or economically disadvantaged area of Nigeria
- engaged in value-adding activities: manufacturing, agro-processing, processing and similar productive work
Not eligible: trading (buying and selling) and primary agriculture (crop or livestock farming alone). Other businesses may be considered only in special circumstances. The programme focuses on youth and women entrepreneurs.
Security and Guarantor Requirements
- a charge on the business’s assets
- personal guarantee of the chief promoter or cooperative president
- one external guarantor for loans up to ₦5 million; two for loans above ₦5 million
- credit life or key-man insurance on the chief promoter, with BOI as first loss payee
- a signed Global Standing Instruction (GSI) mandate
Who can be a guarantor: senior civil servants (Level 10+, within age and service limits), confirmed bankers (Banking Officer or above), professionals such as doctors, lawyers, accountants and engineers, senior staff of quoted companies, oil or telecoms firms, or business owners with a net worth of at least twice the loan amount.
Documents You Need
- business registration documents (e.g. business name certificate)
- an application letter
- pro-forma invoices for equipment
- a business plan with cash-flow projections (BOI provides a template)
- one year of bank statements (existing businesses)
- regulatory approvals such as NAFDAC or SON, where relevant
- evidence of an unexpired lease on your factory or workshop
- guarantor documents: letter of intent, net-worth form, ID and evidence of assets
- NIN, BVN, valid ID and passport photos for the promoter and guarantors
- proof of residential address
How to Apply
- Read the conditions and FAQs on the official BOI RAPID portal and its FAQ page.
- Create an account at rapid.boi.ng/register.
- Complete the application form and upload your business plan and supporting documents.
- Arrange your guarantors and their documents.
- Submit and await appraisal by BOI or an accredited BDSP.
Enquiries: [email protected] or 0700-CALL-BOI (0700 225 5264). Apply only on rapid.boi.ng and never pay “agents” who promise approval.
Tips
- Make sure your business adds value (processing, manufacturing) rather than only trading.
- Prepare a realistic cash-flow plan that shows how you’ll repay from sales.
- Line up qualified guarantors early; this is often the hardest part.
- Get quotations (pro-forma invoices) for equipment before applying.
- Register your business name with CAC first if you haven’t.
