5 Institutions Where SMEs Can Get Grants and Loans in Nigeria

  Small and medium-sized enterprises (SMEs) are the backbone of the Nigerian economy, accounting for over 90% of businesses and 70% of employment. However, access to finance (grants and loans) remains a major challenge for SMEs in Nigeria.

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The good news is that there are a number of Nigerian-based institutions that offer grants and loans to SMEs. In this article, we will discuss 10 of the institutions that give out grants and loans, their requirements, and their websites.

1. Bank of Industry (BOI)

The Bank of Industry (BOI) is a Nigerian development finance institution that provides financial assistance to small, medium, and large-scale enterprises. BOI offers a variety of loan products, including:

• SME Loan Scheme: This scheme provides loans of up to N200 million to SMEs in all sectors of the economy.
• Youth Entrepreneurship Support (YES) Programme: This program provides financial support to young entrepreneurs between the ages of 18 and 35.
• NollyFund: This fund provides financial support to the Nigerian film industry.

Requirements

• Must be a registered business in Nigeria.
• Must have a viable business plan.
• Must have collateral to secure the loan.

Website: https://www.boi.ng/

2. Development Bank of Nigeria (DBN)

The Development Bank of Nigeria (DBN) is a wholesale development finance institution that provides wholesale financing to micro, small, and medium-sized enterprises (MSMEs) through Participating Financial Institutions (PFIs). DBN does not lend directly to MSMEs.

Requirements

• Must be a Nigerian MSME.
• Must have a viable business plan.
• Must have a relationship with a Participating Financial Institution (PFI).

Website: https://devbankng.com/

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3. Central Bank of Nigeria (CBN) Micro, Small and Medium Enterprises Development Fund (MSMEDF)

The CBN MSMEDF is a fund established by the Central Bank of Nigeria to provide financial support to MSMEs in Nigeria. The fund is managed by the Bank of Industry (BOI).

Requirements

• Must be a registered business in Nigeria.
• Must have a viable business plan.
• Must have collateral to secure the loan.

Website: https://www.cbn.gov.ng/

4. Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is a government agency that provides support to SMEs in Nigeria. SMEDAN offers a number of programs and services, including:

• SME Micro-Credit Scheme: This scheme provides loans of up to N1 million to SMEs in all sectors of the economy.
• One-Enterprise, One-Product (OTOP) Scheme: This scheme provides support to SMEs in the production of a single product.
• National Enterprise Development Programme (NEDEP): This program provides training and support to SMEs in all sectors of the economy.

Requirements:

• Must be a registered business in Nigeria.
• Must have a viable business plan.

Website: https://smedan.gov.ng/

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5. Nigerian Export-Import Bank (NEXIM)

The Nigerian Export-Import Bank (NEXIM) is a government agency that provides financial support to Nigerian exporters and importers. NEXIM offers a number of loan products, including:

• Export Expansion Facility (EEF): This facility provides loans to Nigerian exporters to support their working capital and investment needs.
• Import Finance Facility (IFF): This facility provides loans to Nigerian importers to finance the importation of raw materials, machinery, and other capital goods.

Requirements

• Must be a registered business in Nigeria.
• Must have a viable business plan.
• Must be engaged in export or import activities.

Website: https://neximbank.com.ng/ Featured Image Source:

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