BOI Launches Nollyfund | Independent Newspapers Limited
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BOI Launches Nollyfund

Posted: May 2, 2015 at 12:00 am   /   by   /   comments (0)

In continuation of the Bank of Industry’s (BOI) support for the Nigerian Creative Industry, it has developed a special Product Program called “BOI NollyFund” under which Nigeria’s leading movie producers will receive financial support to produce international quality films and screen them through various platforms of movie distribution available both in Nigeria and internationally.

To support this process and ensure that only commercially viable scripts with good storylines benefit from the scheme, the Bank has set up a NollyFund Implementation Advisory Group made up of two cinema management experts, one national film distributor, two production and post-production experts, two film critics/reviewers, and two film producers. The Group’s mandate is to critically review all the film scripts and associated budgets submitted to BOI by movie producers and make technical recommendations to BOI management for final credit appraisal and subsequent approval in line with the Bank’s Credit Policy.

NollyFund has an initial Program Limit of N1.0billion and a single obligor limit of N50million for individual loans. The Fund can be accessed by Companies engaged in film production. Applicants are expected to provide commercially viable scripts and demonstrate a track record of successful movie productions. The producer is expected to sign up a reputable distributor who would issue a Minimum Guarantee and provide a cash deposit of 5% of the loan amount.  A Minimum Guarantee is a cash advance payable to the Producer by the Distributor in exchange for the exclusive rights to distribute a film in contractually stipulated media in agreed Sales Territory. This is similar to the internationally accepted loan structures for movie production and will definitely provide a great boost to Nigeria’s Nollywood.