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The
Bank of Industry (BoI) and Nigerian Export-Import (NEXIM) Bank have so
far received only six applications from prospective beneficiaries of
the $200 million (about N30 billion) special fund by the federal
government dedicated to the development of the entertainment sector.

Since
the announcement of the Nigerian Creative and Entertainment Industry
Stimulation loans scheme last year, as part of efforts to boost
capacity building in the country’s entertainment industry, it was
gathered that the two banks mandated to manage the fund have been
inundated with enquiries on guidelines for accessing it, as well as
proposals from interested applicants.

The
fund is meant to enhance industry capacity in the areas of film
production, film export market development, and proper distribution
network and system; development of distribution infrastructure and
platforms; development and production platforms and facilities;
acquisition of hi-tech production equipment and ancillary facilities,
as well as refinancing of existing projects to help save jobs and
create new jobs.

Appraisal and processing

Though
the applications are currently undergoing appraisal and processing,
Chinedu Morgan, who represented the BOI managing director, Evelyn
Oputu, told NEXT several proposals have been adjudged below the set
standard and quality. He did not disclose the names of the applicants.

“Since
the announcement of the initiative, six applications have been received
so far. We have commenced the process of appraisal. We are at the
advanced stage of processing the applications. But, there are still
some barriers. Some of the practitioners do not know how to put the
ideas together. We need to address the issue of how to assist them make
their projects viable,” Mr. Morgan said.

To
help prospective beneficiaries come up with bankable proposals, Mr.
Morgan said the BOI and NEXIM are working with the Lagos Business
School (LBS) to develop capacity, particularly by helping to do proper
due diligence and bankable feasibility study, as well as assess the
capability of each applicant to identify areas requiring assistance to
enable them come up with financing models suitable for their respective
enterprise.

Similarly,
last week, the minister of finance, Olusegun Aganga, disclosed that the
LBS is also collaborating with the Small and Medium Enterprises
Development Agency of Nigeria (SMEDAN) and other 22 enterprise
development centres across the country to provide business skills
training to improve the managerial capability of entrepreneurs.

Accessing the loan

On
the criteria for accessing the loan, Mr. Morgan, who said the
application process has been harmonised with NEXIM, advised interested
persons to download the forms from their websites, while they are
expected to forward the completed applications to the BOI offices in
the six geopolitical zones, including Abuja, Kaduna, Bauchi, Lagos,
Akure, Asaba, and Aba.

The
completed applications are to be supported with a copy of the projects
brief, feasibility study, and certified copies of company’s certificate
of incorporation, memorandum and Articles of Association, Corporate
Affairs Commission (CAC) Forms 2 and 7, indicating the names of the
shareholders and directors.

Other
documents to be attached to the applications include audited statement
of accounts or cash flows; budgets or bill of quantities; proforma
invoices; completion bond; proprietary rights; collateral security,
properly patented; trademarked and copyrighted intellectual property
assets or sales agreement and evidence of contracts handled.

Meanwhile,
the minister disclosed that there is an ongoing working arrangement
with various state governments to establish about 20 industrial
clusters in the country to help the growth of Small and Growing
Businesses (SGBs).

“Government
is making good progress in its bid to establish 20 industrial clusters
and job centres in the country. While we have gone far in our
discussion with some states, others are yet to come on board.

“But
we expect them to do so very soon based on discussions we have had so
far for them to provide infrastructures necessary to make them work,”
the minister said.