May 15, (THEWILL) – First Bank of Nigeria Limited has reaffirmed its leadership in retail and SME banking with the redesign of its Retail Temporary Overdraft (RTOD) product, a short-term facility tailored to help businesses navigate urgent financial needs and ensure smooth operations amid Nigeria’s evolving economic climate.
As entrepreneurs face rising costs and fluctuating policies, timely access to working capital has become a necessity. The RTOD facility is designed to provide swift, flexible cash flow support to business owners, empowering them to manage their operations with greater ease and resilience.
RTOD Features and Benefits
The RTOD allows eligible customers to access up to N5 million monthly, subject to 10% of their six-month credit turnover from sales. Key features include:
Competitive interest rate (subject to market dynamics)
No tangible collateral required
30-day tenor, renewable up to 12 times a year
Repayment automatically deducted from incoming business proceeds
The product is particularly beneficial for SMEs in emergency situations, supporting business growth and improving liquidity without the burden of long-term repayment or asset-backed security.
Eligibility and Application Process
To qualify, businesses must have maintained an account with FirstBank for at least six months, or 12 months with another commercial bank. The facility offers fast-track approval, sometimes within 24 hours, for applicants who meet all criteria.
Customers can apply by contacting their FirstBank SME advisor or by submitting the required documents online.
Success Stories and Impact
Many businesses have leveraged the RTOD to scale their operations. One such example is Champion Five Limited, a food retail venture led by Mr. Isola. The business secured a N5 million overdraft to boost working capital, leading to a 50% increase in production, workforce expansion, and significant growth in customer base.
Award-Winning Performance
FirstBank’s commitment to supporting SMEs was globally recognised at the Asian Banker Excellence in Retail Financial Services International Awards 2024, where it clinched the titles of:
- Best SME Bank in Nigeria
- Best SME Bank in Africa
These accolades underscore FirstBank’s strategic focus on empowering small and medium enterprises across the continent. The Asian Banker Awards are renowned for their rigorous assessment criteria, including financial performance, customer experience, and innovation.
Driving SME Growth Across Africa
SMEs are the cornerstone of the Nigerian and African economies, yet they often grapple with limited access to finance. FirstBank has consistently positioned itself as more than a banking institution—acting as an advocate, enabler, and partner to businesses through a suite of tailored solutions.
From deposit products and loan packages to customised advisory services, the bank’s FirstSME initiative supports businesses in accessing capital, managing cash flow, and overcoming the complexities of a competitive market.
Through innovative offerings like the RTOD, FirstBank continues to champion financial inclusion and economic growth, solidifying its position as a trusted partner for SMEs in Nigeria and beyond.
*** Written By Tosin Ajayi
