FirstBank Empowers SMEs with Flexible Overdraft Facility, Retains Retail Banking Leadership

In Nigeria’s ever-evolving economic environment, timely access to funds can be the difference between survival and growth for businesses.

Acknowledging this need for financial agility, First Bank of Nigeria Limited has revamped its Retail Temporary Overdraft (RTOD) product to support entrepreneurs with a swift and flexible financing solution tailored to their urgent cash flow needs.

The RTOD facility offers a lifeline for small and medium-sized enterprises (SMEs) by providing access to as much as N5 million monthly, based on 10% of the customer’s credit turnover in the past six months. The product is designed to meet urgent financial obligations with a 30-day tenor—renewable up to 12 times a year—and does not require tangible collateral. Its competitive interest rate, aligned with market trends, makes it an attractive option for business owners seeking short-term liquidity.

Key features of the RTOD include up to N5 million monthly overdraft; 30-day facility tenor (renewable 12 times annually); no collateral required; competitive interest rate; and automatic repayment from incoming receivables

Eligible customers must have operated a FirstBank account for at least six months or maintained an account at any other commercial bank for 12 months. The application process is streamlined, with approvals possible in as little as 24 hours, provided all criteria are met. Businesses can apply through a FirstBank SME Advisor or via the bank’s digital platform.

One of the success stories from the RTOD initiative is Mr. Isola, founder of Champion Five Limited, a food retail business. By leveraging a N5 million overdraft facility, his company boosted production by 50%, expanded its customer base, and created new jobs—illustrating the transformative potential of short-term financial support.

This innovative approach to SME financing has not gone unnoticed. In 2024, FirstBank was honored at the Asian Banker Excellence in Retail Financial Services International Awards, clinching both the Best SME Bank in Nigeria and Best SME Bank in Africa titles. These accolades recognize the bank’s dedication to service delivery, innovation, and impactful financial inclusion for the SME sector.

The awards, renowned as one of the most rigorous in global banking, underscore FirstBank’s strategic leadership and commitment to supporting SMEs—the backbone of economic growth across Africa.

Through its FirstSME initiative and tailored financial products, FirstBank continues to bridge financing gaps, helping businesses manage capital, drive expansion, and contribute meaningfully to Nigeria’s and Africa’s economic development.