Learn how to apply for COVID-19 loan in Nigeria for households and SMEs with this easy step-by-step guide below.
Applying for a COVID-19 loan in Nigeria doesn’t have to feel like finding a needle in a haystack. Whether you’re a small business owner, an entrepreneur, or someone whose job was affected by the pandemic, this guide will help you navigate the process smoothly.
However, as of June 2025, the TCF may no longer be accepting new applications, as it was a temporary measure. Let’s break it all down in a simple, engaging way, so you can understand what I meant without the hassle.
Table of Contents
What Is the COVID-19 Loan in Nigeria?
The COVID-19 loan is a government-backed financial support package introduced to ease the economic burden caused by the pandemic. It primarily targets households, Micro, Small, and Medium Enterprises (MSMEs), and businesses across key sectors.
This initiative is managed by the Central Bank of Nigeria (CBN) and executed through the NIRSAL Microfinance Bank (NMFB).
Why Is This Loan So Important?
You know how it feels when your car breaks down, and your wallet is nearly empty? That’s exactly how the pandemic hit many Nigerians unexpectedly and painfully. The COVID-19 loan gives individuals and businesses a safety net to keep moving forward.
Here’s why it matters:
- Helps businesses stay afloat
- Offers breathing space to households
- Supports job retention
- Enables economic recovery
Who Can Apply for the COVID-19 Loan?
Let’s clear the fog this loan isn’t for everyone. But if you check one of these boxes, you’re in luck:
- Households impacted by income loss
- MSMEs across agriculture, manufacturing, health, hospitality, etc.
- Sole proprietors, startups, and registered businesses
Eligibility Criteria: Do You Qualify?
The TCF was designed to target those most affected by the economic impact of COVID-19. The eligibility criteria were as follows:
- Households: Applicants needed to provide verifiable evidence that their livelihood was adversely affected by the pandemic. This could include proof of job loss, reduced income, or other financial hardships directly linked to COVID-19 restrictions.
- SMEs: Existing businesses had to demonstrate that their operations were negatively impacted by the pandemic, such as reduced sales or disrupted supply chains. Additionally, enterprises with bankable plans to capitalize on opportunities arising from the pandemic (e.g., pivoting to produce essential goods) were eligible.
Eligible sectors included hospitality, agriculture, retail, and manufacturing, among others. The CBN aimed to ensure that funds reached those with genuine needs, supported by verifiable documentation.
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Types of COVID-19 Loans Available in Nigeria
The TCF offered two main loan categories tailored to different needs:
| Loan Type | Maximum Amount | Purpose |
|---|---|---|
| Household TCF | ₦3 million | To support households facing financial difficulties due to COVID-19. |
| SME TCF | ₦25 million | To assist SMEs in recovering from pandemic-related losses or expanding operations to seize new opportunities. |
The loan amount for SMEs was determined based on the business’s activity, cash flow, and industry size. Funding for the TCF was sourced from the Micro, Small, and Medium Enterprise Development Fund (MSMEDF), ensuring accessibility for small-scale borrowers.
Loan Features and Benefits
Let’s talk numbers and perks:
- Loan amount: ₦250,000 to ₦25,000,000 (depending on business size and cash flow)
- Interest rate: 5% per annum (until Feb 28, 2021), then 9% thereafter
- Tenure: Up to 3 years
- Moratorium: Up to 12 months
How to Apply for COVID-19 Loan in Nigeria: Step-by-Step
Applying doesn’t need to be complicated. Here’s a walkthrough:
Step 1: Visit the Official NMFB Portal
Head over to https://nmfb.com.ng to begin the application process. (Note: This URL may no longer be active as of 2025.) Click on the COVID-19 TCF link.
Step 2: Choose Loan Category
You’ll be prompted to pick between Household and SME loan. Choose based on your situation.
Step 3: Complete the Application Form
Fill in your:
- Full name
- BVN
- Phone number
- Business details (for SMEs)
- Monthly income (for households)
Step 4: Upload Required Documents
Applicants were required to submit specific documents to verify their eligibility and ensure transparency. The requirements varied slightly for households and SMEs:
| Applicant Type | Required Documents |
|---|---|
| Households | – Loan application letter – Completed application form – Guarantor form (later waived by the CBN) – Valid ID (national ID, driver’s license, voter’s card, or passport) – Current utility bill (e.g., electricity or water bill) – Two recent passport-size photographs – Bank Verification Number (BVN) |
| SMEs | – All household documents – Business registration certificate (e.g., CAC registration) – Financial statements (e.g., bank statements, tax clearance) – Proof of business activity (e.g., invoices, contracts) – Evidence of COVID-19 impact (e.g., reduced sales records) |
The CBN waived the guarantor requirement in June 2020 to make the process easier, particularly for those struggling to find guarantors.
Step 5: Submit and Wait for Feedback
Once submitted, NMFB will verify your application. Be patient—it may take a few days to weeks.
Step 6: Accept Offer and Receive Funds
If successful, you’ll receive a loan offer. Accept the terms and the money hits your account.
What to Include in Your Business Plan
Don’t worry, your business plan doesn’t have to be fancy. Just ensure it includes:
- Business overview
- Nature of operations
- How COVID-19 affected it
- Funding requirements
- Projected cash flow
How Long Does It Take to Get Approved?
Approval times vary, but typically:
- Household loans: 1–2 weeks
- SME loans: 2–4 weeks
Delays may occur due to high volume or incomplete documentation.
Common Mistakes to Avoid
Nobody wants to miss out because of a tiny error. Avoid these pitfalls:
- Using incorrect BVN (Check bvn well) or bank details
- Uploading blurry or wrong documents
- Submitting incomplete forms
- Applying under the wrong category
Tips to Improve Approval Chances
Want to give yourself an edge? Try this:
- Be honest in your application
- Use a professional tone in your business plan
- Ensure all documents are clear and correct
- Check your email regularly for updates
Can You Reapply If Rejected?
Yes, you can! If you’re rejected:
- Review the reason
- Fix the errors
- Reapply after a few weeks
Just don’t give up—many applicants succeed on the second try.
What If I Don’t Have a CAC Registration?
If you’re a small or informal business without a CAC, you can:
- Apply under the Household category
- Consider registering your business for future opportunities
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Covid-19 Loan Current Status (June 2025)
The TCF was a temporary initiative to address the immediate economic challenges of the COVID-19 pandemic. As of June 2025, several factors suggest the program may no longer be active:
- A 2024 report from Nairametrics noted that over 62% of the ₦419.42 billion disbursed remained unpaid, indicating the program’s disbursement phase may have concluded.
- The application portal (www.covid19.nmfb.com.ng) is no longer accessible, suggesting no new applications are being accepted.
- Nigeria’s repayment of a $3.4 billion IMF loan in April 2025, as reported by Reuters and Bloomberg, relates to a separate government loan but may signal the end of COVID-19-specific financial programs.
However, the CBN and NMFB may offer alternative loan programs, such as the Agric, Small and Medium Enterprise Scheme (AGSMEIS), which provides up to ₦3 million at 9% interest. Verify current options with the CBN (www.cbn.gov.ng) or NMFB (www.nmfb.com.ng).
Contact Information
For assistance, applicants could contact NIRSAL Microfinance Bank through:
- Website: www.nmfb.com.ng
- Email: support@nmfb.com.ng
- Phone: +234 908 888 8888 (toll-free)
- Physical Branches: NMFB has branches nationwide; check their website for locations.
FAQs
1. Can I apply for the COVID-19 loan without a registered business?
Yes, you can apply under the Household category if your business isn’t registered with CAC.
2. How do I know if my loan application was successful?
You’ll receive a confirmation email or SMS from NMFB. You can also check your status on the NMFB portal.
3. What happens if I default on the loan?
Defaulting could affect your credit rating and future eligibility for government programs. Always communicate with NMFB if you foresee issues.
4. Can I use the loan for personal expenses?
The Household loan can cover personal expenses due to income loss. The SME loan must be used strictly for business purposes.
5. Is there a deadline for applying?
There’s no official deadline yet, but the program is subject to available funds—apply as soon as possible.
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