By Ayomide Otitoju
First Bank of Nigeria Limited has reinforced its position as a leader in retail banking with the enhanced rollout of its Retail Temporary Overdraft (RTOD) facility, designed to provide timely and flexible financial support to small and medium-sized enterprises (SMEs) across the country.
In an economic environment marked by volatility and rapid policy changes, access to short-term funding has become vital for Nigerian businesses. Acknowledging this reality, FirstBank has revamped its RTOD product to offer entrepreneurs swift, collateral-free overdrafts to address urgent operational needs and maintain business continuity.
The RTOD facility allows qualified customers to access up to N5 million monthly, subject to 10% of their six-month credit turnover. The loan comes with a competitive interest rate, a 30-day repayment period, and can be utilized up to 12 times annually. Notably, no tangible collateral is required, making it accessible to a wider range of businesses.
Eligibility is open to SMEs with a minimum of six months’ banking relationship with FirstBank, or 12 months with any other commercial bank. Repayment is automated, deducted from the customer’s incoming business proceeds, simplifying the process and ensuring timely clearance.
One such beneficiary, Mr. Isola of Champion Five Limited, accessed the N5 million RTOD to expand production capacity and boost his company’s market presence. Within a year, his food retail venture recorded a 50% increase in output and hired additional staff, marking significant growth driven by the overdraft support.
The success of the RTOD facility and other SME-centric offerings has earned FirstBank notable accolades, including the Best SME Bank in Nigeria and Best SME Bank in Africa at the 2024 Asian Banker Excellence in Retail Financial Services International Awards. These recognitions underscore the bank’s commitment to fostering entrepreneurship and economic development across the continent.
The Asian Banker awards, considered among the most rigorous in global retail banking, assess institutions based on customer experience, service innovation, financial performance, and strategic execution. FirstBank’s dual win reflects its leadership in supporting SMEs with practical, high-impact financial solutions.
“As a critical driver of employment and innovation, the SME sector needs more than just access to capital—it needs a partner that understands its challenges,” the bank noted. “Our RTOD facility and broader FirstSME initiative are designed to meet those needs and help businesses thrive.”
Through a suite of tailored financial products, advisory services, and digital tools, FirstBank continues to deliver on its mandate to empower SMEs and solidify its role as a cornerstone of Africa’s economic transformation.
