If you’ve ever had a great business idea and watched it slip through your fingers because of lack of funds, you’re not alone. Thousands of entrepreneurs in Nigeria are stuck in the same boat — ideas ready to go, but wallets telling a different story. While some manage to bootstrap or get a helping hand from friends and family, others turn to loans. But let’s be honest, not all loan options are worth the trouble.

Some come with sky-high interest rates. Others bury you in paperwork. And a few sound good on paper but are nearly impossible to access in reality. So, if you’re looking for loan options that are actually within reach, come with fair terms, and are known to support Nigerian businesses, this post is for you.

Here’s a look at some of the best loan sources available to entrepreneurs in Nigeria — from government initiatives to fintech platforms and traditional banks.

The Bank of Industry is one of the go-to places for entrepreneurs looking to fund small and medium-scale businesses. What makes BOI stand out is that it’s focused entirely on supporting businesses — not personal loans.

Why you should care:

What to know:

Types of entrepreneurs it fits: Manufacturers, agro-processors, tech startups, and businesses in value-added services.

The DBN doesn’t give out loans directly to individuals, but it works through other financial institutions — mostly microfinance banks. So, if you apply for a loan through one of DBN’s partners, there’s a good chance that the funds come from DBN.

Why you should consider this:

Good for: Small businesses in various sectors — from agriculture to trade, services, and light manufacturing.

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If you’ve ever walked around a market or spoken to small shop owners, you’ve probably heard of LAPO. It’s one of the most popular microfinance banks in Nigeria and a top choice for small-scale entrepreneurs.

Why LAPO stands out:

What you need:

This bank became more popular during the COVID-19 lockdowns when they rolled out the federal government’s intervention loans. But they’re still offering business loans today under various programs.

What makes NMFB worth checking out:

Things to prepare:

SMEDAN mainly supports small businesses with training and access to finance. They’ve partnered with banks and private lenders to give out loans through various programs. While SMEDAN itself may not give you the loan directly, they help you access funding with less stress.

Why SMEDAN is helpful:

Who it helps the most: Early-stage entrepreneurs, especially those in need of training and guidance as well as funding.

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Several banks in Nigeria offer business loans, especially for SMEs. Some of the most active ones include:

What to expect:

These days, you don’t need to walk into a bank or dress formally to get a business loan. Fintech companies have made funding much more accessible — especially for entrepreneurs who need quick, short-term cash.

Popular platforms include:

Why fintech works for entrepreneurs:

Downsides:

ALSO READ: How To Qualify For A Business Loan In Nigeria

Though this isn’t a loan in the traditional sense, the TEF Programme deserves a mention because it provides seed capital of up to $5,000 (over N7 million at current rates) to selected African entrepreneurs. It’s technically a grant, not a loan — and that’s even better.

Perks:

• You also get training and mentorship.
• Open to startups and even just ideas (as long as your pitch is solid).

What you need:

• A strong business idea or early-stage business.
• Willingness to go through training and complete all stages of the application.

The YES Programme is specifically for Nigerian youth aged 18–35 who have a viable business idea. It offers funding, capacity building, and mentorship.

What’s in it for you:

• You’ll receive training in business development.
• Access to loans with better terms than traditional lenders.
• Designed to empower young Nigerians who want to be job creators, not job seekers.

ALSO READ: How to Apply for Government Business Loans in Nigeria