In Nigeria’s volatile financial climate, access to quick and flexible funding is critical for the survival and growth of small and medium-sized enterprises (SMEs). First Bank of Nigeria Limited has responded with its redesigned Retail Temporary Overdraft (RTOD) facility, providing vital short-term cash flow support to entrepreneurs across the country.
The RTOD offers qualified businesses access to up to ₦5 million monthly, with no need for collateral, and repayment is automatically deducted from incoming sales proceeds. The facility lasts 30 days and can be renewed up to 12 times annually, making it a convenient lifeline for urgent financial needs.
To be eligible, SMEs must maintain a regular cash flow and have an existing banking relationship of at least six months with FirstBank or 12 months with any other commercial bank. Interest rates are competitive and adjust with market conditions, keeping costs manageable for borrowers.
Many SMEs have benefited from this facility, including Champion Five Limited, a food retail company that used the overdraft to boost production by 50%, expand its workforce, and grow its customer base. The RTOD has proven to be a game-changer in supporting business resilience and expansion.
FirstBank’s commitment to empowering SMEs has earned it top honors at the 2024 Asian Banker Excellence in Retail Financial Services International Awards, where it was named Best SME Bank in Nigeria and Best SME Bank in Africa. These awards highlight the bank’s leadership in delivering innovative financial solutions tailored to the needs of African businesses.
SMEs remain a crucial engine for economic growth and job creation in Nigeria and across Africa, yet many face challenges in securing adequate financing. FirstBank’s RTOD, alongside its broader FirstSME initiative, addresses these gaps by providing flexible, accessible capital and advisory support.
As economic pressures continue to impact businesses, FirstBank’s innovative overdraft product offers entrepreneurs the financial agility they need to seize opportunities and drive growth, reinforcing the bank’s position as a key partner in Africa’s economic development.
