If you are a woman who owns a business in Nigeria and need money to buy equipment, increase production or expand your operations, the Bank of Industry (BOI) has a funding programme you should know about.
The programme is called Guaranteed Loans for Women (GLOW). It was designed to help women-owned businesses access funding without relying entirely on the usual sources of business loans.
Under the programme, eligible small businesses can apply for up to ₦10 million, while larger businesses can request up to ₦50 million. The initiative has a total fund of ₦10 billion.
However, this is not a loan for every type of business. BOI focuses on businesses that produce goods, process raw materials or provide other approved value-adding services. For example, a woman who owns a food-processing business and needs equipment to increase production may be a better fit than someone who simply buys and resells finished products.
What Can You Use the Money For?
The GLOW loan is intended to help businesses acquire the things they need to operate and grow.
For example, if you run a bakery and need a bigger oven, own a garment business and need industrial sewing machines, or process agricultural products and need better equipment, the programme may be worth exploring.
The funding can cover approved business assets, equipment and raw materials. Your application should clearly explain what you want to buy, how much it will cost and how it will help your business.
The important thing is to show BOI what the money will do for your business, not just how much you want to borrow.
How Much Interest Will You Pay?
The published GLOW programme information lists an interest rate of 7% per year, excluding applicable insurance and legal fees.
The maximum repayment period depends on the type of loan. Financing for equipment and other long-term business needs can run for up to five years, while working capital loans have a maximum period of three years.
Both options include a period during which repayment of the principal is postponed, subject to BOI’s conditions.
Before applying, calculate whether your business can generate enough money to repay the loan while still covering salaries, rent, electricity, raw materials and other expenses. Getting funding is useful only if the business can manage the repayments.
Who Can Apply?
The programme is intended for women-owned businesses operating in eligible sectors, including manufacturing, food processing, agribusiness and other productive activities.
However, ordinary trading and primary agricultural production are excluded under the published guidelines.
Your business registration type and the amount you want to borrow will also determine the documents you need to submit.
Documents You Should Prepare
If you operate a registered business name, start gathering these documents:
- Your business registration certificate.
- A letter explaining why you need the loan.
- A business plan showing what you do and how you intend to use the money.
- Price quotations for the equipment or raw materials you want to purchase.
- Your business bank statement covering the last 12 months.
- A valid means of identification.
- Your CV and a recent utility bill.
You may also need documents relating to your business premises, guarantor, employees and any licences required for your industry.
If your business is registered as a limited liability company, you will need additional documents, including your certificate of incorporation, CAC records and relevant tax documents.
Companies applying for more than ₦10 million may also need three years of audited financial statements if they are existing businesses. Startups may instead be asked to provide recent management accounts or a statement showing their financial position.
One document you should take seriously is the business plan. BOI wants to understand how your business operates, who buys your products, what your expenses are and how you expect to repay the loan. A clear, realistic explanation is more useful than simply requesting a large amount.
You May Need a Guarantor or Other Security
The amount you request determines the security BOI requires.
- For loans below ₦5 million, you need one external guarantor.
- For loans from ₦5 million to ₦10 million, you need two external guarantors.
- For loans above ₦10 million up to ₦50 million, BOI requires a bank guarantee or legal mortgage.
The programme also lists a Global Standing Instruction (GSI) mandate and an all-asset debenture over the borrower’s assets among its security requirements.
In simple terms, you should not apply without understanding what you may have to provide as security and the consequences of failing to repay. A bank guarantee or legal mortgage, for example, can be a significant commitment.
How to Apply for the BOI GLOW Loan
If your business meets the programme’s requirements, visit the official portal to review the application instructions.
GLOW application portal: https://glow.boi.ng/register
Programme information: https://iprogrammes.boi.ng/glow
Check the requirements for your business category before submitting your application. Prepare your documents, calculate the amount your business genuinely needs and explain how the funding will help it grow.