Startup business loans in Nigeria – Where and how to get it

Last Updated on Dec 11th, 2023

The growth and expansion of a country’s economy largely depends on the prosperity of businesses in it. Therefore, the more businesses prosper, the more likely it is for the economy as a whole to blossom. However, these businesses need money to startup and thrive, especially in a country like Nigeria, where regulations are not exactly favourable. The need for startup business loans in Nigeria cannot be overemphasized, and if you are a business owner, you should check out the institutions that offer them. With access to proper loans, businesses would easily survive and thrive in the nation. You can check out this post on business ideas in Nigeria.


Where can I get startup business loans in Nigeria?

Some several institutions and individuals offer startup business loans in Nigeria, which you can benefit from. However, many of these investors secure collateral at first, or not, depending on their mode of operation. Generally, you can get a startup business loan in Nigeria through any of the following means:

Angel investors

Angel investors are individuals or bodies that invest and help build startups in exchange for a certain percentage of shares or return on investment. In time past, angel investors have helped many startups get on their feet all around the world, and are a good option for your business. Also, they provide other experiences that would benefit your company as a whole.


crowdfunding is now a very popular means of raising money for startups all around the world. It does not require paperwork or traditional loan application and repayment, and often times not referred to as a loan. Crowdfunding simply allows you to create an open floor for investors to buy into your idea rather than sourcing for a single investor yourself. Also, there are numerous crowdfunding sites to choose from, with some good examples being Kickstarter and Indiegogo.

Venture capitalist

this is another good way to raise funds for your business. Venture capitalists are institutions that provide funds for high-growth and risk potential startups. Also, these institutions often focus on specific industries and have a short return on investment window that is between 3 to 5 years.

Factoring/ invoice advances

this process is quite tricky and involves a provider giving you the money on billed-out invoices. After fronting you, you are required to pay back once the customer settles the bill. Importantly, this system creates a win-win situation for all parties, especially you who require a business loan.


grants are available to startups whose services would mostly solve an economic problem or are research-related. Also, they are given by governmental bodies and some individuals. Some examples of these are the Small Business Technology Transfer (STTR) programs, and Small business Innovation Research (SBIR).

Institutions that offer startup business loans in Nigeria

There are three main institutions that offer startup loans in Nigeria. They are:

Commercial banks

commercial banks are arguably the top institutions that provide startup business loans in Nigeria. However, a majority of them require collateral as well as other strict requirements. As a result, this makes things difficult for businesses, especially startups looking to obtain a loan. Furthermore, they offer the highest loan amount too, because they are able to secure an equivalent value in assets from you.

Microfinance banks

microfinance banks are, in some way, a watered-down version of commercial banks. This is because they offer more or less the same services, but not at an equivalent capacity. In reality, microfinance banks offer you loans with less stringent rules and collateral requirements. However, they also offer lesser maximum loan amounts than commercial banks.

Development banks

some examples of development banks are the bank of industry, the African development bank, and the African agriculture development bank. They offer loans with collateral or not, depending on the nature and the amount involved. Also, these institutions focus on SMEs, which makes them favourable for startup business loans in Nigeria.


You can obtain startup business loans in Nigeria from either of the options discussed above. However, these institutions have different requirements and loan access conditions in place before granting your request. To obtain a loan, simply walk into any of these institutions and speak to an agent. He or she would run you through the process.

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