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.
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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/
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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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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/
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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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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/
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