ARTICLES

How to Access Loans for Import Business in Nigeria

So you’ve found a winning product overseas. The demand is high, the profit margin looks sweet, and you’re ready to cash in. There’s just one snag — your capital isn’t quite up to the task. Sound familiar? That’s the dilemma many aspiring importers in Nigeria face. Whether it’s electronics from China, fashion items from Turkey, or automobile parts from Europe, import business can bring in huge returns — if you can fund it right. The good news? You don’t need to wait until you’ve stacked up millions. There are ways to get loans specifically tailored for this kind of business. But just like any hustle in Nigeria, there’s a method to the madness. The trick is knowing where to look, what to prepare, and how to increase your chances of getting that all-important “Yes.”

Let’s get into it.

1. Know the Type of Loan You Need

First things first: not all loans are the same.

If you walk into a bank and simply say, “I want a loan,” you might be directed to personal or salary-based loans — which often won’t cut it for import business needs. What you should be looking for is a trade finance loan or import finance facility.

These are designed to help importers fund international purchases, pay suppliers, and even handle shipping and clearing fees. Depending on your arrangement with the supplier, the loan can cover full or partial payments.

Common types include:

Import Duty Finance: Helps you cover customs duties so your goods don’t get stuck at the port.
Letter of Credit (LC): A popular method used to guarantee payment to foreign suppliers.
Invoice Financing: You use unpaid invoices to get a loan while waiting for payment from your Nigerian buyers.

2. Build a Bankable Business Profile

Before a bank or lender gives you money, they need to know you’re not a ghost.

If your business is not registered with the Corporate Affairs Commission (CAC), that’s your first assignment. Most banks won’t take you seriously without it. In fact, some banks won’t even let you open a business account without CAC documents.

You’ll need:

A CAC Certificate
Tax Identification Number (TIN)
Business account statements
Evidence of past transactions (if any)
Business plan (keep it realistic)

A solid business profile boosts your credibility. It shows you mean business and reduces the risk from the lender’s point of view.

3. Approach the Right Lenders

Here’s where many people miss it: not all banks or lenders offer loans suitable for import businesses.

These are some options you can try:

Commercial Banks

Some Nigerian banks have special loan products for SMEs and import businesses. These include:

Access Bank: Offers import finance and letters of credit.
GTBank: Known for LC and trade finance services.
Zenith Bank: Offers foreign currency loans and other trade services.
UBA: Also offers letters of credit and structured trade finance.

You’ll need to already have a business account with most of these banks. Some might require a minimum turnover, so it’s best to speak with your account officer.

Development Finance Institutions (DFIs)

Banks like the Bank of Industry (BOI) and Development Bank of Nigeria (DBN) offer SME loans at lower interest rates. They support sectors like manufacturing, agro-processing, and export — but some importers who process or add value to imported goods can benefit.

Microfinance Banks and Fintechs

If the banks are too slow or too strict, microfinance institutions and online lenders can be a quicker option. Some of them include:

Lidya
Carbon for Business
Aella Credit
FairMoney
Baobab Microfinance

Their interest rates might be higher, but their documentation process is often simpler.

4. Prepare a Strong Loan Application

No lender wants to read an essay. They want clarity, numbers, and confidence.

Here’s what to include in your application:

Purpose of the loan (e.g., to import 1,000 units of LED TVs from Guangzhou)
How much you need
Who your supplier is (include proforma invoice if possible)
Expected cost of goods, shipping, customs, and other fees
Your repayment plan
Collateral, if required (more on this next)

Your loan application should feel like a business pitch. It needs to show that the deal makes sense and that you’ll be able to pay back.

5. Be Ready for Collateral (But There’s a Twist)

Some lenders will ask for collateral: land, buildings, cars, or even fixed deposits. This scares a lot of people away.

But here’s the twist: not all lenders require it. Some fintechs and microfinance banks give out smaller loans without demanding assets. Others might ask for guarantors instead.

Also, some banks accept other forms of “soft” collateral:

Stock inventory
Lien on your business account
Personal guarantees
Domiciliation of proceeds (they control your payment inflow until the loan is repaid)

Don’t assume you can’t get a loan just because you don’t own land in Lekki. Ask questions and shop around.

ALSO READ: How to Get a Loan Without Collateral in Nigeria

6. Work with a Freight Forwarder or Clearing Agent

Okay, this isn’t about the loan directly — but it can save you from wasting the loan you worked so hard to get.

Many importers make mistakes with shipping, documentation, or customs duties. That’s where a reliable clearing agent or freight forwarder comes in.

They can help you:

Calculate the true landed cost of your goods
Arrange shipment and insurance
Handle port documentation
Clear your goods quickly

When you know your full costs, you can request the right loan amount and avoid surprises that swallow your profits.

7. Think About Forex Access

One hidden headache of the import business in Nigeria is foreign exchange (forex). If you get a loan in naira, but need to pay a supplier in dollars or yuan, you’ll need access to forex. Depending on government policy and market trends, this can be tricky.

Some banks offer forward contracts or access to the official window for forex. Others may require you to source your dollars yourself from the black market (BDC). Plan ahead. Factor in the exchange rate and find out how your bank or lender handles forex payments before taking the loan.

8. Start Small, Then Scale

If you’re just getting into the import game, don’t shoot for the stars too fast.

Start with a smaller shipment. Use a smaller loan. Prove your concept. Build trust with your supplier and your lender. Then scale.

Many Nigerian importers started by importing items worth N500,000 or N1 million, built solid customer bases, and reinvested profits. After a few cycles, it becomes easier to access bigger loans with better terms.