Access to affordable and flexible financing remains one of the biggest challenges facing Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. In a country where small businesses contribute nearly 50% of the GDP and employ over 80% of the workforce, business loans are vital for growth, expansion, and sustainability.
Fortunately, a growing number of banks, government programs, and financial institutions in Nigeria now offer MSME-focused loan products, specially designed to help small businesses thrive in the challenging economic environment of 2025.
In this blog post, we’ll explore the top banks and financial institutions offering business loans in Nigeria, the types of MSME loans available, eligibility requirements, and tips for securing funding.
Why MSME Loans Are Important in Nigeria
MSMEs in Nigeria face several challenges, including:
Lack of access to credit
High-interest rates from informal lenders
Insufficient collateral
Limited financial literacy
By providing targeted funding, MSME loans help entrepreneurs:
Expand operations
Purchase inventory or equipment
Hire and train staff
Build working capital
Navigate cash flow challenges
Types of Business Loans Available to Nigerian MSMEs
Before diving into the top lenders, it’s important to understand the various loan options available to small businesses:
Term Loans: Fixed amount repaid over a defined period (e.g., 6 months – 5 years)
Working Capital Loans: Short-term loans to meet day-to-day operations
Asset Financing: Loans for buying business assets like machinery or vehicles
Invoice Discounting: Funding based on unpaid invoices
Overdrafts: Credit limits on current accounts for temporary needs
Government Intervention Funds: Specially subsidized loans from government schemes
Top Banks Offering Business Loans to MSMEs in Nigeria (2025)
1. Access Bank – Business Loans & Womenpreneur Fund
Access Bank is one of Nigeria’s top banks for SME financing, offering various loan packages tailored for small businesses, including W Power Loan for women-led enterprises.
Loan amount: Up to ₦5 million (unsecured)
Interest rate: From 9% per annum (CBN-backed)
Tenure: Up to 24 months
Collateral: Required for large loans
Special Program: Access Bank SME Toolkit and Business Clinics
Business Loans in Nigeria
Website: www.accessbankplc.com
2. First Bank – FirstEdu and SME Connect Loans
First Bank supports education and non-education MSMEs with unique offerings like FirstEdu Loan (for school owners) and SME Connect (for general businesses).
Loan amount: ₦50,000 – ₦10 million
Interest rate: Competitive market rates
Tenure: Up to 12 months (renewable)
Collateral: Flexible; sometimes waived for education loans
Value-added services: Business advisory and e-learning
Business Loans in Nigeria
Website: www.firstbanknigeria.com
3. Zenith Bank – SME Loans and Z-Woman Loan
Zenith Bank offers customized loan solutions for SMEs through its Zenith SME Grow My Business Loan and women-centric Z-Woman Loan.
Loan amount: ₦500,000 – ₦10 million
Interest rate: From 15% per annum
Tenure: Up to 24 months
Collateral: May be waived for smaller loans
Additional support: Zenith Business School & Online Training
Business Loans in Nigeria
Website: www.zenithbank.com
4. GTBank – QuickCredit for SMEs
GTBank’s QuickCredit for Small Businesses is designed for registered SMEs with active accounts, offering fast disbursement and easy repayment.
Loan amount: ₦250,000 – ₦5 million
Interest rate: 1.5% per month (18% per annum)
Tenure: Up to 12 months
Collateral: None for low-risk customers
Eligibility: Active GTBank business account for at least 1 year
Business Loans in Nigeria
Website: www.gtbank.com
5. UBA – SME Loans and UBA Business Direct
UBA offers a wide range of MSME loans across multiple sectors, including agriculture, trade, and services. It also provides digital banking tools for SMEs.
Loan amount: ₦100,000 – ₦20 million
Interest rate: Competitive
Tenure: Up to 36 months
Collateral: Required for loans above ₦1 million
Support Tools: UBA Business Series (webinars, mentorship, and grants)
Business Loans in Nigeria
Website: www.ubagroup.com
🇳🇬 Government and Institutional Loan Providers for MSMEs
6. Development Bank of Nigeria (DBN)
DBN provides wholesale loans to MSMEs through commercial banks and microfinance institutions.
Loan amount: Up to ₦10 million or more
Interest rate: From 9% per annum
Tenure: 3 – 10 years
Collateral: Flexible, often based on financials
How to Apply: Through participating banks and MFIs
Website: www.devbankng.com
7. Bank of Industry (BOI)
BOI is Nigeria’s key development finance institution, offering sector-specific loans to manufacturers, traders, and service providers.
Loan amount: ₦500,000 – ₦500 million
Interest rate: 5% – 9%
Tenure: Up to 5 years
Collateral: Required, but may accept third-party guarantees or assets
Notable Programs: BOI Youth Entrepreneurship Support (YES) Program
Business Loans in Nigeria
Website: www.boi.ng
8. NIRSAL Microfinance Bank (NMFB)
Backed by CBN, NIRSAL provides AGSMEIS loans, COVID-19 support funds, and trader loans directly to micro and small businesses.
Loan amount: ₦50,000 – ₦10 million
Interest rate: 5% – 9%
Tenure: Up to 36 months
Collateral: Not required for small loans
Popular Schemes: AGSMEIS, TCF, Anchor Borrowers Program
Business Loans in Nigeria
Website: www.nmfb.com.ng
9. LAPO Microfinance Bank
LAPO MFB is known for providing micro and group loans to small business owners, especially in rural and underserved areas.
Loan amount: ₦30,000 – ₦5 million
Interest rate: 2% – 5% monthly
Tenure: 1 – 12 months
Collateral: Not required for low-tier loans
Special Focus: Women and petty traders
Website: www.lapo-nigeria.org
10. SMEDAN (Small and Medium Enterprises Development Agency of Nigeria)
SMEDAN partners with financial institutions to deliver funding, training, and market access to MSMEs across Nigeria.
Direct Loans: Via partnerships with banks
Grants & Subsidies: Occasional access to free funding
Support: Business registration, mentorship, and formalization
Website: www.smedan.gov.ng
Basic Requirements to Apply for Business Loans in Nigeria
Each institution has specific requirements, but generally, you’ll need:
CAC business registration documents
Valid means of identification
Bank Verification Number (BVN)
Bank statements (3–12 months)
Business plan or financial projections
Collateral or guarantor (for larger loans)
Tips for Getting Approved for MSME Loans
Keep Your Financial Records Updated
Banks love transparency. Keep proper income, expense, and tax records.Start with Small Loans
Build trust and repayment history before requesting larger sums.Open a Business Bank Account
This builds credibility and helps lenders track your financial behavior.Build Your Credit Score
Timely repayment of past loans improves your access to bigger funds.Attend SME Clinics and Webinars
Many banks offer free business development sessions—take advantage of them.
You can read on : Which loan is easy to borrow
Final Thoughts: Empowering MSMEs Through Strategic Lending
MSMEs are the engine of Nigeria’s economy. With the right financial support, mentorship, and digital tools, small businesses can scale, innovate, and create jobs.
Whether you’re in retail, services, agriculture, or manufacturing, there’s a business loan provider in Nigeria ready to support you in 2025. Start by building your credit profile, organizing your financial records, and applying through credible banks and government-backed institutions.
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