Steps To Get NERFUND Loans in Nigeria

In this guide, I will explain how you can get NERFUND loans in Nigeria. Getting a business loan has been quite difficult for Small and Medium scale Enterprises (SMEs) in recent times, whether it’s a start up fund, overhead expenses or for a business expansion. With the “prevailing high” interest rates and small tenor period, it has become increasingly difficult getting a business loan from commercial, community and industrial banks.

Economic success has always been essential in a country’s development, hence the need for Government to encourage the private sector by setting up finances tools to aid economic growth.

In 1989, The National Economic Reconstruction Fund (NERFUND) was established under the Decree No 2, to aid in acquiring medium to long-term financing to feasible Small and Medium scale production enterprises. Recent research has shown that the program has funded about 2,829 projects valued at N9.5 billion

Related: How to secure an Agricultural loan through the Bank of Agriculture

National Economic Reconstruction Fund (NERFUND) is a Federal Government Business Financing Agency; a type of financial institution established to assist both micro and macro entrepreneurs that are engaged in manufacturing, mining, food processing, agro-allied and ancillary services such as fruit juices, noodles, tomato, LPG bottling, printing and publishing, etc.

Objectives of NERFUND

The main objectives of NERFUND are:

  • Increase the quantity of goods and services available for local consumption and export
  • Improve industrialization in the country
  • Improve the employment portfolio
  • Expand production and manufacturing base
  • Add value to the economy

Eligibility to get NERFUND loans in Nigeria

All Nigerian entrepreneurs are eligible to apply for NERFUND loans either as individuals, under the Micro Credit Scheme, or as Associations, Cooperatives or Corporate Entities/partner institutions under the SME Credit Facility.

Related: Mortgage Loans in Nigeria; Requirements and How to Get Home Finance

SCF are available for Small, medium and large enterprises, whom meet the following requirements:

  • Wholly Nigerian owned New or existing companies, seeking start-up, rehabilitation, expansion, modernization or diversification.
  • Fund beneficiaries will be required to prove their commitment to the project by contributing at least 25-30% of the project cost excluding land.
  • Borrowers whose management, financial portfolio (including availability of collateral and guarantee), character and reputation have no controversial reputation.
  • Clients with demonstrable ability to meet loan repayments, and no record of unpaid loans to erstwhile development finance institutions and other banks.
  • Up to 60% of raw materials must be locally sourced;
  • Plant and machinery shall be sourced preferably locally and elsewhere
  • Projects must be financially and economically viable and shall have positive impact on especially in employment creation in the locality;

Application process to get NERFUND loans

Are you trying to get NERFUND loans? If yes, here are the procedures for NERFUND application;

  1. Completion of NERFUND’s Bio-data
  2. Write a formal application letter
  3. A bankable feasibility report of your prospective business
  4. Inclusion of a proforma invoice stating the price and source of proposed plant and machinery
  5. Submission of forms and Bio-data to NERFUND Head Office,

Related: How to Get a Loan in Nigeria

Types of NERFUND Loans

The Micro Credit Scheme was recently started to carter for low-budget business owners who are the vast majority and are focused mostly on micro scale. This introduction became necessary because commercial and industry banks are not too keen to provide credit to this sector of the business community. The main objective of this scheme is poverty alleviation and increases the GDP growth rate.
The target audiences are graduates, women societies, market associations, artisans and lots more who are engaged in cottage industries, and small scale manufacturing/food processing, etc.

This fund is valued below Five Million Naira (N5, 000,000.00). Other attributes of this product include, but not limited to the following:

  • Collateral Free
  • Single digit interest rate (8%)
  • 3 – 6 months moratorium period
  • Three years tenor period
  • One percent appraisal fee (one-off payment).
  • 10% equity contribution


The SME credit Facility is the traditional forte of NERFUND, under this program, it has funded the establishment of 266 Small and Medium scale Enterprises between 1990 and 1999.

  • The SME credit facility attracts 13.5% per cent interest rate. This depends on the source of fund.
  • A fixed asset collateral
  • A moratorium period of up to one year
  • A repayment tenor of up to five years
  • Two percent appraisal fee
  • 25-30% equity contribution
  •  Above 5 million Naira.
  • Possession of Limited Liability Company

Projects NERFUND is interested in

NERFUND’s significance is based on careful project selection and management; hence, it specifically supports quality projects with emphasis on developmental impact. NERFUND therefore, considers industries that meet the following criteria:

  • Capacity to substantially add to industrial output.
  • Projects that use majorly domestic raw materials.
  • Industry in which local comparative advantages could be converted to competitive ones.
  • Ability to promote the expansion of exports through the production of high quality products that can attract domestic and international markets.
  • Niche Projects that create and produce both forward and backwards linkages, with the rest of the domestic, regional and world economy.
  • Lucrative ventures that promote inter-state or regional integration.


Are you interested in contacting NERFUND, below is their official address

National Economic Reconstruction Fund
No 3 Zinguichor Street,

Off IBB way,

Wuse Zone 4,



Telephone Numbers:

+234 9 2904838, +234 9 2904680, +234 9 2904823


Business Hours

Weekday: 8:00am to 5:00pm

Read Also: 10 Sources of Capital and Funds for your Business in Nigeria

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Omawumi Eyekpimi is a Freelance writer, Self-Proclaimed Intellect, Loves to write, She enjoys; Fun, Music, Motion Picture, The Arts, and Books...♥™!

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