58 Untapped Federal Government Loans in Nigeria

by Counseal Team

Updated November 26, 2023

In Nigeria, the federal government offers loans to encourage innovation and entrepreneurship with the overall goal of improving the Nigerian economy.

Government loans are funds given directly by the government or made by private lenders, like banks, and backed by the government. The loans are for a specific purpose and, in most cases, monitored for effective use.

Different government agencies facilitate federal government loans to provide support for small, medium, and large businesses.


Which Federal Government Agencies in Nigeria Support Business Owners?

  • Bank of Agriculture (BOA)
  • Bank of Industry (BOI) 
  • Central Bank of Nigeria (CBN)
  • Development Bank of Nigeria (DBN)
  • Nigerian Export-Import Bank (NEXIM)
  • Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
  • Federal Mortgage Bank of Nigeria (FMBN)

58 Federal Government loans you can access and how to get it

The primary goal of the government in granting loans is to improve the economy, especially the underperforming sectors. 

We will categorise the loans into the different sectors of the economy, so you can easily pick yours.

Micro, Small, Medium, and Large Enterprises 

The size of a business is classified by the number of employees it has, among other factors. In Nigeria, microbusinesses have 1-9 employees. Small businesses have 9-49 employees. Medium businesses have 50-249 employees. Large businesses have 250+ employees. 

Let’s look into the loans available to them:

  • Micro, Small, Medium Enterprises Development Fund (MSMEDF): The CBN administers it for intervention in the following industries:
    • Agricultural value chain activities
    • Cottage Industries
    • Artisans
    • Services
    • Renewable energy/energy efficient products and technologies
    • Trade and general commerce. Only 10% of the fund will apply to trade and commerce, so they might not give it priority.
    • Other economic activity as the CBN prescribes. 
  • Bottom of Pyramid: The Bank of Industry (BOI) facilitates this for micro-enterprises. It targets the funds at people/businesses who are economically active but have little or no access to the current commercial banking structure. It administers the fund through Microfinance Banks. 
  • Food and Agro Commodity Processing: This is for SMEs spanning the food and agricultural commodities value chain. 
  • Graduate Entrepreneurship Fund: This fund is for National Youth Service Corps (NYSC) members who are undergoing the one-year compulsory programme. You can only use it for businesses within the Bank of Industry’s SME clusters.
  • On-Lending to Commercial Banks. This is a partnership between BOI and commercial banks to facilitate easy access to MSMEs. 
  • Solar Energy Fund: You can access this fund through BOI or other designated commercial banks.
  • Youth Entrepreneurship Support (Yes) Program: The Bank of Industry put this Fund in place to encourage self-employment in youths between the ages of 18–35 years. There is a minimum requirement of an Ordinary National Diploma (OND) qualification for applicants.
  • FGN Special Intervention Fund for MSME (NEDEP): This is a special fund by the Federal Government put in place as an intervention for MSMEs to get loans at an interest rate of 9%. The fund also serves loan applications from SMEDAN through the National Enterprise Development Programme (NEDEP)
  • BRAVE Women: BOI executes this fund funded by the Women Entrepreneurs Finance Initiative (We-Fi). The fund is to enable an empowering environment for women Entrepreneurs in Nigeria. This 5-year fund lasts until 2023.
  • Wholesale lending: The Development Bank of Nigeria provides wholesale term funding and risk-sharing facilities through Financial Institutions to MSMEs. Its primary aim is to support local entrepreneurs and small businesses.
  • Small and Medium Enterprise Export Facility (SMEEF), Nigeria-Africa Trade and Investment Promotion Program (NATIPP), and the Export Development Facility (EDF): These are facilities implemented by the NEXIM bank for SMEs involved in non-oil export.
  • Jaiz/SMEDAN Matching Fund Programme For Micro And Small Enterprises: The Fund is a collaboration between Jaiz Bank PLC and SMEDAN. Its purpose is to enhance job creation and enterprise output for SMEs. 



Agriculture 2

Next to oil, agriculture is without a doubt the most significant sub-sector in the Nigerian economy. To foster the growth of this sector, the government is facilitating several loan schemes. They are:

  • The Bank of Agriculture in fulfilling its objectives offers the following agricultural loan facilities:
    • Microcredit
    • Co-operative Family Feeding Programme (CFFP).
    • Operation Feed Yourself (OFY)
    • Agriculture Land Financing (ALF)
    • Input Procurement Credit Facility
    • Equipment Leasing Products Programme (ELPP)
    • Post-harvest process logistics and storage finance
    • Equipment Leasing Products Programme (ELPP)
    • Export Finance Product Programme (EFPP)
    • Youth Agricultural Revolution in Nigeria (YARN)
    • Women in Agriculture and Enterprise (WAE)
    • BOA Rural Business Initiative cooperative loans (BOARBI)
    • Payday Loan
    • Nano Loans (Lift the poor)
  • Anchor Borrower’s Programme (ABP): This is a programme put in place by the CBN for small, medium, and large-scale farmers.
  • Commercial Agriculture Credit Scheme (CACS): There are several schemes that were also put in place with CACS by the CBN. They are:
    • Maize Aggregation Scheme (MAS): For Feed-millers, poultry farmers, Silos, and Warehouse Operators and confectionery companies. You can apply for the scheme through the First Bank of Nigeria.
    • Paddy Aggregation Scheme (PAS): You can also access this through the First Bank of Nigeria.
  • Real Sector Support Facility (RSSF): This is a credit financing facility for new and expansion agricultural projects. 
  • National Program on Food Security (NPFS): The Bank of Industry implements this fund scheme with the Federal Ministry of Agriculture and Rural Development. They target the fund at Agro-allied processors and Farmers.
  • Rice and Cassava Intervention Fund: This Fund is for the establishment of ten (10) medium scale Rice Mills of about 36,000 metric tons of paddy per annum and six (6) high-quality Cassava Flour Mills of about 18,000 metric tons of cassava tubers per annum. The Mills are to be in Kano, Kogi, Kebbi, Zamfara, Bayelsa, Bauchi, Benue, Ogun, and Anambra, States for the Rice Mills and in Ondo, Ogun, Abia, Delta, Nasarawa, and Cross River, States for the high-quality Cassava Flour Mills.
  • Sugar Development Council Fund: The fund is for the establishment and resuscitation of companies engaged in the production of sugar, ethanol, and sugarcane. The BOI put it in place to reduce Nigeria’s dependence on imported refined sugar. To facilitate this fund, the BOI works with the National Sugar Development Council.


business person trading with the world 2

Trade is one sector that dominates the Nigerian economy, at 16.86% of the GDP. This includes export, wholesale, and retail trade. The Nigerian government is especially promoting the export of locally made goods to grow the Naira. These are the loan facilities available for the trade sector, especially exports:

  • Export Credit Guarantee Facility: This is a guarantee given by NEXIM to banks that loan money to exporters. This is because of the reluctance of banks to loan money to exporters in the pre-shipment stage. Watch this short video to learn more about the facility. Export Credit Guarantee.
  • Non-Oil Export Stimulation Facility (NESF): The CBN administers this loan facility to boost the export of goods other than oil. They put it in place in October 2017 with a tenor of ten (10) years (i.e., it will last until 31st December 2027). 
  • Direct Lending Facility: This is a fund specifically for exporters. It is to foster their trade and aid them with incentives, including equipment that will boost their production.
  • Foreign Input Facility: This is a loan given by NEXIM in foreign currency to some participating banks on behalf of loan applicants. To access this loan, you would have to go through a qualified bank.
  • Local Input Facility: This is like the foreign input facility, but the NEXIM bank issue the loan in the local currency.
  • Export Credit Insurance Facility: This insurance scheme is to cushion the effect of non-payment by buyers of export products. It only applies if the non-payment resulted from circumstances out of their control. Watch this video to learn more about this insurance facility. Export Credit Insurance.
  • Women and Youth Export Facility (WAYEF): This is fostering an increase in funding for women and youth between the ages of 18 to 35 years. This facility applies to Women and youth in the export of non-oil products.
  • Re-discounting and Re-financing Facility (RRF): NEXIM Bank implements this facility to assist commercial banks in granting short-term loans to exporters of non-oil products, raw materials, and their processing. Watch this video to learn more about this facility. Re-discounting and Re-financing Facility.
  • Stocking Facility (SF): This facility provides funds for manufacturing exporters to stock up on raw materials that are seasonal.
  • Nigeria-Africa Trade and Investment Promotion Program (NATIPP): This is a joint programme between the NEXIM bank, the African Export-Import Bank (AFREXIMBANK), and the Nigerian Export Promotion Council (NEPC).

Real Estate

Private developers dominate the real estate sector.

The government is not vested in this sector as it is “self-sufficient”. The developers get the most funding from commercial banks, which accept real estate investment as collateral.

A few of the government facilities are:

  • Solar Energy Fund: You can access this fund through BOI or other designated commercial banks.
  • National Housing Fund (NHF): The Federal Mortgage Bank sponsors and grants this fund to private Estate Developers amongst others. It is solely for developing housing for the NHF contributors.

Entertainment services

afrobeats club night scene 2

The Nigerian entertainment industry (Nollywood) is a fast-emerging and important sector of the economy.

To encourage its growth, the government put in place some facilities, which are:

  • Creative Industry Financing Initiative -The CBN created this initiative in collaboration with the Bankers’ committee.
  • Nollyfund: This fund administered by the BOI is to be used for film production, from Pre-production to Post-production.
  • Nigerian Creative Arts and Entertainment Industry Loans: This is a loan facility executed by the NEXIM bank to grow several aspects of the entertainment sector.
  • Nigeria-Africa Trade and Investment Promotion Program (NATIPP): This is a joint programme between the NEXIM bank, the African Export-Import Bank (AFREXIMBANK), and the Nigerian Export Promotion Council (NEPC).

Information Technology

This is a green area in the Nigerian economy. It has, however, been on the rise in Nigeria, just like in other parts of the world. The facilities that are available for now are:

  • Creative Industry Financing Initiative – The CBN created this initiative in collaboration with the Bankers’ committee.
  • Startup Investment Seed Fund: This fund is managed by the Nigerian Sovereign Investment Authority(NSIA). It was recently introduced by the Startup Act 2022. It is majorly for Tech startups


upholstery business 2

This is an important sector of the Nigerian economy. It creates employment and fuels the economy through its activities. The loan facilities available are:

  • Real Sector Support Facility (RSSF): This is a credit financing facility for new and expansion manufacturing projects.
  • BOI/CBN Intervention Fund: This comprises two funds:
    • N235 billion CBN intervention fund for manufacturing, refinancing, and restructuring facilities for banks’ loans. They put it in place to increase the access of manufacturers to credit facilities, fast-tracking their growth.
    • N300 billion CBN power and airline intervention fund (PAIF). This is for fast-tracking the development of the power and Aviation Industry through easy access to credit facilities.
  • Light Manufacturing: This loan is for manufacturing companies involved in the production of:
    • Blocks & Interlocking Stones
    • Ceramics & Tiles
    • Chemicals and Paints
    • Cosmetics/Hair Products
    • Plastics
    • Recycling
    • Roofing Sheets
    • Soaps and Detergents
    • Lube Blending
    • Digital Printing/Multimedia Publishing
    • Doors and Window Frames
    • Furniture/Wood Processing
  • NADDC Fund: This is a fund for manufacturers of automobile parts and Car assembly plants.
  • BOI/State Matching Funds: This fund results from a partnership between BOI and some state governments. The fund is available to companies involved in manufacturing and Agro-processing. You can access it through the various states’ Ministry of Commerce and Industry. The fund is available in all states except Katsina, Lagos, F.C.T., Nasarawa, Plateau, Abia, Rivers, Adamawa, Yobe, Bauchi, Akwa Ibom, Bauchi, Imo, and Jigawa states. 
  • BOI/Dangote Foundation Matching Funds: This is a Five Billion Naira matching fund that business enterprises and Limited Liability Companies involved in manufacturing and Agro-processing can access.


Nigeria’s healthcare is a critical sector that has received as little attention as it should. There is, however, some movement to grow it. The few facilities available are:

  • Credit Support Scheme For The Healthcare Sector – This scheme is a measure put in place by the CBN to cushion the effect of Covid–19 by developing the healthcare sector. The exit date for the scheme is 31st December 2030.
  • Solar Energy Fund: You can access this fund through BOI or other designated commercial banks.


seamstress working on her product 2

Nigeria’s fashion industry is very important to the country’s culture and economy.

It includes everything from the production of raw materials to the creation of fashion items by designers and manufacturers.

It also includes retail sales, advertising, and promotion.

  • Creative Industry Financing Initiative -The CBN created this initiative in collaboration with the Bankers’ committee.
  • Fashion and Beauty Product: This is an initiative by the Bank of Industry to foster development in the following sectors of the fashion industry.
    • Adire (Tie & Dye) & Aso-Oke
    • Clothing (design and production)
    • Fashion/Beauty Training Institutes
    • Leatherworks
    • Distribution (local Label retailing)
    • Beauty salons (Hair, skin, face or make up, feminine cleaning, etc) 

How Can I Access the Federal Government Sponsored Loans?

Different federal government agencies implement the loans. You can access the loans either through the agency directly or through the designated bank (commercial or microfinance). 

You can view the specific requirements of each loan through the links provided above. There are, however, some requirements that are basic and common to all.

  • A Completed application form accompanied with:
    • Certificate of Incorporation
    • Company profile
    • Business plan
    • Cash flow budget
    • Bank statements (12 months)
    • Audited financial accounts
    • Valid means of identification (driving license, passport, voter’s card)
    • Proof of address
    • Guarantor and his personal details
    • Details of collateral offered

There are also some SME loans you can only access through clusters. That is a group of small business owners who are in the same industry. It could also be a co-operative society or an association.

This is a comprehensive list, but it is important to always research to weigh the options available to you. While researching, you might be lucky enough to access better options like grants or interest-free loans from non-governmental organisations. Overall, a federal government loan will ease your growth or expansion plans. You should not hesitate to apply. If you have questions about the loan application and its requirements, book a consultation with our Counseal expert

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