Top Reliable Business Loan Providers In Nigeria: Funding Options For Entrepreneurs And Startups In Nigeria

The process of starting and running a business in Nigeria can be daunting. It often requires significant capital which can be difficult to obtain. Thankfully, there are many reliable business loan providers in Nigeria that can provide entrepreneurs and startups with the funding they need to get their businesses off the ground. In this blog post, we will discuss the top reliable business loan providers in Nigeria, including their funding options, eligibility criteria, and more. 

Whether you're just starting out or are looking for additional capital to expand your business, this blog post is sure to provide the information you need to make an informed decision.

Tony Elumelu Foundation (TEF)

The Tony Elumelu Foundation (TEF) is a philanthropic organization founded by the Nigerian entrepreneur Tony Elumelu. It aims to empower entrepreneurs in Africa by providing access to funding, training, and mentorship.

TEF's flagship program, the Tony Elumelu Entrepreneurship Program (TEEP), is an annual initiative that provides $5,000 seed capital to 1,000 African entrepreneurs, as well as a 12-week training program and mentorship. The program has been running since 2015 and has so far supported over 9,000 entrepreneurs across Africa.

TEF also offers other programs and initiatives that support entrepreneurship in Africa, including the TEFConnect platform, which connects entrepreneurs with investors and other resources, and the TEF Alumni Network, which provides ongoing support and networking opportunities to past TEEP beneficiaries.

For entrepreneurs in Nigeria, the TEF can be a valuable resource for accessing funding and support. However, it's worth noting that the TEEP program is highly competitive, with tens of thousands of applications received each year. Other options for accessing business loans in Nigeria include commercial banks, microfinance institutions, and government-backed initiatives such as the Central Bank of Nigeria's Anchor Borrowers' Program.

Bank of Industry (BOI)

The Bank of Industry (BOI) is a government-owned financial institution that provides loans to small, medium and large scale enterprises in Nigeria. The bank was established in 1959 to provide long-term financial assistance to the industrial sector of the Nigerian economy.

BOI offers various loan products to entrepreneurs and startups in Nigeria, such as the SME Financing Scheme, the Youth Entrepreneurship Support Program (YES-P), and the Graduate Entrepreneurship Fund (GEF). These loan products are designed to meet the needs of different businesses, ranging from agriculture, manufacturing, healthcare, and technology.

The SME Financing Scheme is aimed at small and medium-scale enterprises, offering them up to N10 million in loans. The Youth Entrepreneurship Support Program (YES-P) targets Nigerian youths between the ages of 18-35, providing them with business training and mentorship, and up to N5 million in loans. The Graduate Entrepreneurship Fund (GEF) provides loans up to N10 million to graduates with viable business ideas.

To access loans from BOI, entrepreneurs must meet certain requirements such as having a viable business plan, collateral, and a good credit score. BOI also requires borrowers to have a minimum of two guarantors who must have good credit scores and a stable source of income.

In addition to providing loans, BOI offers other services such as business advisory, project monitoring, and loan syndication. The bank has been recognized for its contributions to the development of Nigeria’s industrial sector and continues to support entrepreneurs and startups in Nigeria through its loan products and services.

When considering a business loan provider in Nigeria, BOI should be on your list due to its proven track record and commitment to supporting small businesses and startups.

Read Also: How to Get ₦50,000 to ₦5Million Business Loan in Nigeria for Your Small or Medium Business.

Development Bank of Nigeria (DBN)

Another reliable business loan provider in Nigeria is the Development Bank of Nigeria (DBN). This institution was established in 2017 to provide sustainable financing to micro, small, and medium enterprises (MSMEs) across the country.

DBN collaborates with other financial institutions to ensure that MSMEs in Nigeria have access to affordable loans and other business support services. The bank provides long-term loans, guarantees, and advisory services to businesses that meet its requirements.

DBN offers loans that range from N1 million to N10 billion to eligible MSMEs. These loans come with flexible repayment terms and low-interest rates. DBN's loans are targeted at businesses in various sectors, including agriculture, manufacturing, and service sectors.

To access DBN's loans, businesses are required to meet specific criteria, including having a registered business name, providing a clear business plan, and having a satisfactory credit score. DBN's loans also require collateral security, such as property, inventory, or equipment.


Another reliable business loan provider in Nigeria is GroFin. This organization is dedicated to providing funding solutions for small and medium-sized businesses across Africa and the Middle East. GroFin offers both debt and equity financing, which makes them a great option for businesses at different stages of growth.

What sets GroFin apart from other lenders is their unique approach to business financing. They offer a comprehensive solution that includes not only financing, but also business support services such as financial management, strategy development, and market research. This approach helps entrepreneurs to build strong, sustainable businesses that can withstand the challenges of the market.

GroFin's loan products range from $100,000 to $1.5 million, with repayment terms ranging from 3 to 7 years. They provide funding for various business needs such as working capital, expansion, equipment purchase, and debt refinancing. GroFin also offers loans to businesses in a variety of sectors including healthcare, agriculture, education, and manufacturing.

To be eligible for GroFin's business loans, your business must be based in Africa or the Middle East and have been operational for at least 2 years. You will also need to provide financial statements, business plans, and other supporting documents to prove your business's viability and sustainability.

If you're looking for a comprehensive financing solution that not only provides funding but also business support services, GroFin is a great option to consider. Their approach to financing and support can help your business grow and thrive.

LAPO Microfinance Bank.

LAPO Microfinance Bank is another reliable business loan provider in Nigeria. The bank provides a range of loan products that are specifically designed for small and medium-sized businesses. They offer loans for working capital, asset acquisition, and business expansion.

LAPO Microfinance Bank also provides financial education and training programs to help entrepreneurs better manage their finances and grow their businesses. This makes them a popular choice for businesses that are just starting out or looking to scale up.

To access a business loan from LAPO Microfinance Bank, entrepreneurs must meet certain requirements. These include providing proof of income and business ownership, having a good credit score, and having a viable business plan.

LAPO Microfinance Bank has a fast loan approval process, which makes it a great option for businesses that need access to funds quickly. Their loan terms and interest rates are also competitive, making it a cost-effective option for businesses in need of financing.

Overall, LAPO Microfinance Bank is a reliable business loan provider in Nigeria that offers affordable loan options to small and medium-sized businesses. With their focus on financial education and training, they are an ideal choice for entrepreneurs looking to grow their businesses while also improving their financial literacy.

Requirements for accessing business loans in Nigeria

Accessing a business loan in Nigeria requires that the applicant meets certain criteria, which may vary depending on the loan provider. However, some common requirements include:

  1. Business Registration: Loan providers usually require proof of business registration with the Corporate Affairs Commission (CAC).

  2. Bank Account: An active bank account with a Nigerian commercial bank is required.

  3. Collateral: Some loan providers may require collateral, such as landed properties, stocks, or equipment.

  4. Business Plan: A detailed business plan outlining the viability and potential for growth of the business may be required.

  5. Credit Score: A good credit score can increase the chances of getting approved for a loan.

  6. Guarantor: Some loan providers may require a guarantor who can take responsibility for the loan if the borrower defaults.

It is important to note that each loan provider may have their own specific requirements, so it is important to do proper research before applying for a loan.


Which bank is best for startup business loans?

 There are several banks in Nigeria that offer startup business loans, and the best bank for you will depend on your specific needs and requirements. Some popular options include Access Bank, First Bank of Nigeria, Guaranty Trust Bank (GTBank), and United Bank for Africa (UBA). It is recommended to research and compare the terms, interest rates, and eligibility criteria offered by different banks to determine the best fit for your startup business.

Which is the most available funding source for new businesses? 

The most available funding sources for new businesses in Nigeria include commercial banks, microfinance banks, government-backed loan schemes, angel investors, venture capital firms, and crowdfunding platforms. 

Each funding source has its own advantages and requirements, and the availability of funds may vary depending on factors such as the nature of your business, industry, and business plan. It is advisable to explore multiple funding options and assess their suitability based on your specific business needs.

What is the best loan company in Nigeria? 

There are several reputable loan companies in Nigeria that provide financing options for individuals and businesses. The best loan company for you will depend on factors such as loan amount, interest rates, repayment terms, and eligibility criteria. Some well-known loan companies in Nigeria include Renmoney, Page Financials, FairMoney, and QuickCheck. 

It is important to carefully review the terms and conditions of each loan company, compare their offerings, and select the one that aligns with your financial requirements and preferences.

Which bank is best for MSME loan in Nigeria? 

Several banks in Nigeria offer specific loan products tailored for Micro, Small, and Medium Enterprises (MSMEs). Some notable banks known for providing MSME loans include Access Bank, First Bank of Nigeria, Stanbic IBTC Bank, and Zenith Bank. 

These banks offer various loan schemes designed to support MSMEs with competitive interest rates, flexible repayment terms, and specialized services. It is recommended to research and compare the offerings of different banks to determine the one that best suits the needs of your MSME.

Which bank has the lowest interest rate for a business loan in Nigeria? 

The interest rates for business loans in Nigeria can vary depending on factors such as the loan amount, loan duration, collateral, and the borrower's creditworthiness. It is important to note that interest rates are subject to change and may vary among different banks and loan products. To find the bank with the lowest interest rate for a business loan, it is advisable to research and compare the interest rates offered by various banks, review their loan terms and conditions, and evaluate the overall cost of borrowing.


Accessing reliable funding options is vital for entrepreneurs and startups looking to grow their businesses in Nigeria. The country's economic climate is favorable for businesses to thrive, and with the right financial support, you can achieve your business goals. 

This article has highlighted some of the top reliable business loan providers in Nigeria, including Tony Elumelu Foundation (TEF), Bank of Industry (BOI), Development Bank of Nigeria (DBN), GroFin, and LAPO Microfinance Bank. These organizations provide loans with flexible terms and conditions that can help your business grow.

When seeking business loans in Nigeria, it is essential to meet the necessary requirements, which vary based on the lender. It's also important to consider the types of loans available, such as secured or unsecured loans, short-term or long-term loans.


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