Small business operators across Nigeria now have improved access to affordable financing through the Bank of Industry’s (BOI) active SME loan programme, which offers up to ₦5 million in funding at single-digit interest rates. The initiative provides a vital opportunity for Micro, Small, and Medium Enterprises (MSMEs) aiming to expand operations, increase production, or invest in long-term growth.
Targeted at high-impact sectors such as agriculture, manufacturing, ICT, health, fashion, and the creative economy, the loan scheme is structured to remove traditional barriers to credit. Many applicants benefit from flexible repayment terms, and in numerous cases, no collateral is required. This design makes it particularly accessible to small business owners who typically struggle to meet the stringent requirements of conventional lenders.
Eligibility for the programme is based on simple but strategic criteria. Businesses must be formally registered with the Corporate Affairs Commission (CAC) and must present a viable business plan along with proof of repayment capacity. The focus is on businesses that show clear potential for impact, sustainability, and job creation.
To streamline access, the BOI has built a nationwide network of over 400 Business Development Service Providers (BDSPs) who work directly with entrepreneurs. These BDSPs assist with developing fundable business proposals, navigating the application process, and offering post-disbursement support and mentorship, ensuring businesses have the tools to succeed even after securing funding.
In addition to its main SME loan programme, the BOI also manages several other specialised funds aimed at empowering Nigerian entrepreneurs. These include:
The Lagos State Access to Finance for SMEs through Co-operatives (LASMECO), which offers up to ₦10 million at an annual interest rate of 9 percent. This facility requires no collateral and carries a 50 percent government guarantee, significantly reducing financial risk for borrowers.
The ₦200 billion Federal Intervention Fund, managed by BOI, is broken down into three key components: ₦75 billion for MSMEs, ₦75 billion for manufacturers, and ₦50 billion for the Presidential Conditional Grant Scheme. These funds are designed to stimulate local production, generate employment, and reinforce economic resilience, with a particular emphasis on youth- and women-led enterprises.
For many small businesses, access to stable, low-cost financing can be a turning point. The BOI’s SME program not only lowers the financial barrier to entry but also pairs funding with the technical support needed for long-term sustainability. This makes it one of the more practical and impactful funding options currently available to small-scale entrepreneurs in Nigeria.
Business owners ready to scale or strengthen their operations are encouraged to visit www.boi.ng/smes to begin the application process or connect with a local BDSP for step-by-step guidance.
