Movies

Bank Of Industry’s (BOI) Nollywood Fund For Film Makers/Producers

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The Bank of Industry (BOI) Nollywood Fund is to support film makers/producers by providing the needed financing required to grow the film industry and make bigger impact in the sector. Nollywood now ranked 3rd in the market after Hollywood (America) and Bollywood (India) in terms of number of contents produced. Nigeria’s creative industry contributed 1.42% ($7.3 billion or N1.4 trillion) to Nigeria’s Re-based GDP in 2013.

The Fund will be accessed by Companies engaged in film production. The fund shall be used for film production value chain (i.e. from pre-production to post-production).

To support this process and ensure that only commercially viable scripts with good storylines will benefit from the scheme, the Bank has set up a Project Implementation Advisory Group made up of two (2) cinemas management experts, one (1) national film distributor, two (2) production and post-production experts, two (2) film critics/reviewers, two (2) film producers and a Banker.

The Group’s mandate is to critically review all film scripts and associated budgets submitted to BOI by movie producers and make recommendations to BOI management for final appraisal and subsequent approval in line with the Bank’s Credit Policy.

Fund Size: N1.0 billion

Single Obligor Limit: N50.0 million

The first tranche of the Fund is projected to create a minimum of 2,000 direct and 5,000 indirect jobs for Nigerians engaged in film production value chain

BOI intends to intervene in this particular sector for the following reasons:

  1. It is a very important emerging sector in the economy.
  2. Contributed 1.42% ($7.3 billion or N1.4 trillion) to Nigeria’s Re-based GDP in 2013.
  3. Contributed to enhancing the image of Nigeria as Nollywood movies are being watched globally.
  4. Nollywood now ranked 3rd in the market after Hollywood (America) and Bollywood (India) in terms of number of contents produced.
  5. Provide the needed financing required to grow the film industry and make bigger impact in the sector.
  6. Address the collateral requirements needed to access loan
  7. Deepen credit to the creative sector and job creation.

 

Pricing

  • 1% Processing fee (full payment at approval)
  • 1% Commitment Fee (full payment on acceptance of loan)
  • Quarterly Monitoring Fee of 0.125% of outstanding Principal
  • Interest rate: 10% per annum payable at the end of every month.

Tenor

Maximum of one year commencing at the end of the moratorium period.

Moratorium

Six (6) months (with option for additional (3) three months) from date of loan disbursement.

Procedure

  1. Customer requests for the facility and if approved an offer is made by BOI to customer based on approved terms and conditions.
  2. Customer accepts the offer and meets all conditions precedent to draw down.
  3. Disbursement is done in phases in accordance with agreed milestones.

Security/Support

  • Copyright Assignment to BOI.
  • Personal Guarantees of Producer and any other individual of repute.
  • The distributor would issue Minimum Guarantee (MG) to cover the full value of project plus interest element for the period.
  • The distributor would issue an undertaking to remit all cinema proceeds of the film based on agreed arrangement to designated bank.
  • The Distributor shall make a security deposit of 5% of the loan amount.
  • Domiciliation of film proceeds with the selected/accredited MSME friendly banks. BOI would be the sole signatory to the account.
  • Referral Letter from a Recognized Organized Private Sector (OPS), Guild or Association.

 

For more information, kindly visit the website HERE.

 

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