By Tosin Ajayi
In an era of economic uncertainty and tightening liquidity, First Bank of Nigeria Limited has reaffirmed its leadership in the retail banking space with the repositioning of its Retail Temporary Overdraft (RTOD) facility — a short-term financing solution designed to help Small and Medium Enterprises (SMEs) maintain business continuity and growth.
The RTOD offers eligible SME customers access to up to ₦5 million monthly, serving as a quick fix for urgent working capital needs without the burden of tangible collateral. The facility, which is available for a 30-day renewable tenor (up to 12 times annually), is anchored on a customer’s cash flow performance, specifically 10% of their six-month credit turnover from sales.
Quick Access, Flexible Repayment
According to the bank, the product is tailored for businesses that have maintained accounts with FirstBank for at least six months, or one year in another commercial bank. One of its key advantages is the fast approval timeline — as short as 24 hours — once all eligibility criteria are met.
Repayments are automatically deducted from daily business proceeds, eliminating the need for separate repayment schedules and ensuring convenience for the borrower.
“RTOD is our way of ensuring that businesses don’t lose momentum due to cash flow gaps,” the bank stated. “It’s about keeping operations moving and positioning SMEs to scale.”
Real Impact, Real Stories
One beneficiary of the facility is Mr. Isola, founder of Champion Five Limited, a growing food retail business. With access to a ₦5 million RTOD facility, Mr. Isola boosted his production by 50%, expanded his customer base, and grew his workforce — all within 12 months.
“This facility came at a time when we needed to scale, and traditional loans were not an option due to processing delays,” Isola said. “FirstBank’s overdraft gave us the breathing room we needed to move forward.”
Awards Reflect Commitment to SMEs
FirstBank’s sustained focus on supporting SMEs recently earned it two prestigious awards at the Asian Banker Excellence in Retail Financial Services International Awards 2024 — Best SME Bank in Nigeria and Best SME Bank in Africa.
The awards, administered by global industry platform The Asian Banker, are widely recognized for their rigorous benchmarking process, covering customer experience, service delivery, financial performance, and innovation in retail banking.
“Being recognized across Africa is a testament to our consistent investment in SME growth and financial inclusion,” the bank said in a statement.
FirstSME: A Broader Ecosystem
Beyond RTOD, FirstBank runs the FirstSME initiative — a broader strategy that includes access to funding, capacity-building, and tailored advisory services. The goal, according to the bank, is to create a sustainable SME ecosystem that contributes to Nigeria’s economic resilience and long-term growth.
SMEs remain the backbone of Africa’s economy, accounting for a significant share of employment and productivity. But many continue to face barriers to credit, especially during times of economic stress. FirstBank’s RTOD product and broader SME initiatives are designed to close that gap.
For more information about the RTOD facility and other SME offerings, customers are encouraged to visit www.firstbanknigeria.com or speak with a FirstBank SME Advisor.
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