Some of the notable players in the Nigerian cosmetics and beauty care

products include Procter and Gamble, Unilever, PZ Cussons, House of Tara

International, Soulmate Industries Ltd, etc. However, there is a need to grow
the industry as the nation looks inwards to generate additional revenue from
the non-oil sector.

Nigerias cosmetic and beauty care products are largely imported.

Imports from foreign countries currently account for 70% of the domestic
market leaving Nigerian producers with just a 30% share. An improvement in
the ability of local manufacturers to compete against imported products will
result in income and employment growth.
PURPOSE/
RATIONALE

To target the consolidation and expansion of market share in

neighbouring West African countries which is under threat due to poor quality
products.

To modernize the production process by providing local producers with

access to finance for purchase of modern equipment and working capital.

TARGET
MARKET/
CRITERIA

PROJECTED
IMPACT

Substantial increase in the industrys employment level

The product will be available to existing and new Limited Liability Companies
and Enterprises engaged in cosmetics and beauty products.
A typical small- to medium scale factory will create an average of 5 10
direct jobs and 15 25 indirect jobs, totaling 20 70 jobs.
Direct Employment
Indirect Employment
Direct
5 -10
20
Indirect
15 25
50
Total
20 35
70

SINGLE
Up to N500 million in accordance with BOI SME lending limits.
OBLIGOR LIMIT
Interest Rate: 9 % per annum.
PRICING

Fees: 1 % processing fee

31/2 7 years commencing at the end of the moratorium period

TENOR

MORATORIUM
SECURITY

6 12 months

Loan Amount
(Nm)

Security Arrangement
1. Specific charge over the equipment

financed.

2. Irrevocable Personal Guarantee of the Chief

Promoter of the company.
1. Two (2) external guarantors acceptable to BOI who
must belong to any of the following categories:
a) Senior Civil Servant (Level 12 and above) who should
not be more than 53 years old or not more than 28 years in
service (whichever comes first).
5.0 10.0

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.
1. Senior Staff (not less than a manager) of reputable
quoted Companies, International Oil Companies,
Telecommunications Companies (GSM providers)
a) The guarantees must be supported with a Notarized
Statement of Net worth acceptable to BOI.

>10.0 20.0
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) Senior Civil Servant (Level 12 and above) who should
not be more than 53 years old or not more than 28 years in
service (whichever comes first.
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)
The guarantees must be supported with a Notarized
Statement of Net worth acceptable to BOI.
Or
Bank Guarantee from Commercial Banks acceptable to
BOI.

1. Irrevocable Personal Guarantee of the Chief

Promoter of the company in addition to or a
combination of the following:
i.
> 20.0

All assets debenture.

ii.

Legal mortgage on pledged property.

iii.

Or

iv. Bank Guarantee from Commercial Banks acceptable to

BOI.

FUNDING

Loan up to N50 million: 90% maximum from BOI (including working

capital from BOI or the SME-friendly banks).

STRUCTURE

Contribution by the promoter 10% (minimum)

Loan above N50 million: 80% maximum (including working capital

from BOI or the SME-friendly banks).

Contribution by the promoter 20% (minimum)

Existing Business:
For an existing project, the estimated value of the factory building and/or
relevant processing equipment, may be applied against the borrowers 10
20% contribution. The factory building and/or equipment must be valued
professionally by any of BOIs accredited valuers. Equity 10% (minimum)

by the promoter(s)

For an existing project, the estimated value of the factory building

and/or relevant processing equipment, may be applied against the
borrowers 10% contribution. The factory building and/or equipment
must be valued professionally by any of BOIs accredited valuers.

Term Loan:
In phases in accordance with agreed milestones and shall be backed by
provision of performance bond by the accredited equipment suppliers (where
the suppliers demand for advance payment before delivery of the equipment).

Establishment of Letters of Credit where the plant and machinery are to be

DISBURSEMENT imported.

Working Capital:

After successful installation and testing of the equipment and payment

shall be made directly to raw materials suppliers.

REPAYMENT
SOURCE

From proceeds of the companys operation

REPAYMENT
MODE

Monthly payment of interest and repayment of principal.