The Bank of Industry (BOI) is set to roll out a ₦62 billion Debt Fund under the Investment in Digital and Creative Enterprises (iDICE) Programme, marking a significant milestone in the Federal Government’s efforts to expand access to finance for startups and innovation-driven enterprises across Nigeria.
The Debt Fund represents the Federal Government’s counterpart contribution to the iDICE Programme and is expected to provide much-needed financing to startups operating within Nigeria’s digital and creative sectors.
The initiative is designed to support business growth, stimulate innovation, create employment opportunities and contribute to the country’s economic diversification agenda.
According to information released by the programme, the fund will be disbursed through two channels to ensure broader accessibility.
Beneficiaries will be able to access financing either directly from the Bank of Industry or through carefully selected Partner Financial Institutions (PFIs) that meet the Bank’s operational and risk management standards.
As part of preparations for the rollout, the Bank of Industry has commenced the onboarding process for eligible financial institutions interested in participating as Partner Financial Institutions.
The exercise is aimed at identifying institutions with the financial capacity, governance structures and operational competence required to support the effective implementation of the programme.
Applications are currently open to Microfinance Banks, Commercial Banks, Merchant Banks, Finance Houses and other licensed financial institutions capable of financing startups and small businesses.
However, only institutions, that successfully satisfy the Bank of Industry’s Risk Assessment Criteria (RAC) will be selected to participate in the programme.
To qualify for onboarding, interested financial institutions are required to submit key corporate and regulatory documents, including Corporate Affairs Commission (CAC) registration documents, a valid Central Bank of Nigeria (CBN) licence or certificate, audited financial statements, and identification documents for key management personnel.
Applicants are also expected to provide evidence of adequate loan security.
Acceptable security includes Treasury Bills valued at 110 per cent of the proposed loan amount, Federal Government Bonds, a Letter of Intent for a Bank Guarantee, or a Legal Mortgage, among other acceptable security instruments.
Industry stakeholders have described the initiative as a major intervention that could significantly improve access to finance for Nigeria’s growing startup ecosystem.
For years, limited access to affordable capital has remained one of the biggest challenges confronting entrepreneurs, particularly businesses operating in the technology, digital and creative sectors.
The introduction of the ₦62 billion Debt Fund is expected to strengthen Nigeria’s innovation ecosystem by enabling startups to scale their operations, expand market access, develop new products and services, attract additional investment and create sustainable employment opportunities for young Nigerians.
The programme also aligns with the Federal Government’s broader objective of promoting industrialisation, digital transformation and private sector-led economic growth through strategic financing interventions.
The Bank of Industry is encouraging qualified financial institutions with the requisite capacity to participate in the onboarding exercise. Stakeholders and members of the public are also invited to recommend reputable financial institutions capable of meeting the Bank’s requirements for consideration as Partner Financial Institutions under the iDICE Programme.
The rollout of the Debt Fund is widely expected to deepen financial inclusion for startups and position Nigeria’s digital and creative industries for accelerated growth, reinforcing the country’s ambition to become a leading innovation hub in Africa.
(vitalnewsngr.com)
