Small Business Loan Options in Lagos, Abuja, Nigeria in 2020

Small Business Loan Options in Nigeria in 2020

It’s 2020 and the global spread of the COVID-19 virus has affected not just our way of life but also how we do business or whether we do business at all. Countries across the world have had to take stringent precautions to curb the spread of the virus, such as nationwide lockdowns and shutting down borders, Nigeria included. As lenders, we have seen first hand how these precautions have slowed down business activities or stopped activities totally for most businesses.

As the government begins to ease the lockdown in most states across Nigeria, businesses have begun limited operations, but then the effect of the total lockdown has brought about the need for quick injections of cash by business owners to cater to operations, purchase inventory or drive sales.

If you are reading this, odds are you are a small business owner in Nigeria trying to secure a loan for your business and currently looking for options that best suit your business operations, capacity, and finance needs. To help you, we have put together a list of options through which you can get a business loan in Nigeria. Before you go through the options though, we recommend you read our short article on factors to consider before applying for a business loan in Nigeria, it will help you understand which of the options mentioned in this article best suits your business.

Now let’s take a look at some options of business loans in Nigeria that you can consider for your business – 

  1. Banks
  2. Online Lenders
  3. Government


Banks have been the go-to loan option for businesses in Nigeria for a very long time. In fact, I’m willing to bet that your first thought when you think about getting a business loan is to visit the nearest commercial or microfinance bank. Banks largely provide secured loans to businesses, which simply means that any business seeking a loan would need to provide some form of security (which in most cases is collateral) in order to get the loan.

Online Lenders

The increasing adoption of technology in Nigeria has given rise to the digitization of various services within the country, including financial services. New and existing players within the financial sector (including banks) have switched to a more digital approach in offering loans to businesses in Nigeria. Thanks to technology, business owners can now research loan offers, apply for, receive, and pay back loans from anywhere in the country with just a mobile phone.

Most online lenders cater to businesses that normally wouldn’t get loans from banks, offering them loans without collateral and can disburse the requested loan amount within 48 hours or less. Online lenders offer short term loans and in most cases have a limit on the amount they can lend to your business, this limit, however, is more than enough for most businesses in Nigeria.

Examples of online lenders are Lendigo, Renmoney, Lidya, C24, etc. You can check if you are eligible for a business loan from Lendigo here, it takes less than a minute and if you are eligible, a Lendigo team member will contact you right away to guide you on the loan application process 


The Nigerian Government, through various parastatals, agencies, and loan schemes offer loans to businesses in the country. Many small business owners prefer this option because the loans are relatively affordable as they either come as grants or loans with little or no interest rates. This same reason, however, makes them difficult to get as competition for them is very high and they tend to take a longer time to get.

If your need for a business loan is not so urgent, you can consider this option for your business. Examples of government agencies, parastatals, loan schemes in Nigeria for business loans are SMEDAN, Bank of Industry, YouWin, N-Power, etc.

In conclusion, getting a business loan in Nigeria is not difficult, depending on the option you settle for, getting the loan you need for your business can take between a day to months. It all depends on what option you consider suitable for your business and a number of factors, 10 of which we explain in detail in our article on factors to consider before applying for a business loan in Nigeria.

What other option(s) have you considered for a business loan in Nigeria? Let us know in the comments and remember to share this article with a business owner you know. See you in the next one