The LGA Revenue Overdraft is designed to offer short term facilities to Local Government Councils in account relationship with FirstBank.
- Single obligor limit is 50% of average net monthly subvention subject to a maximum of N50 million.
- Tenor is 12 months with 30 days clean up cycle subject to the expiration of the tenure of the current Local Government Executives.
- Local Government Subvention account must be domiciled with FirstBank.
- Local Government must have received at least 3 months subvention into their FirstBank account.
- Loan can be used to meet working capital requirements and carry out small capital projects.
- Irrevocable domiciliation of LGAs monthly subvention and other sources of income is required.
- Provides funding for LGAs at a competitive rate and with flexible terms.
- Provides financing for capital projects and working capital.
- No tangible collateral required.
- No equity contribution required.
Visit the nearest FirstBank branch
Question: What is the LGA Revenue Overdraft?
Ans: The LGA Revenue Overdraft provides financing to eligible Local Governments to meet working capital requirements and carry out small capital projects.
Question: Who are the eligible Local Governments?
Ans: The eligible Local Governments are Local Government Authorities (LGAs) who have maintained their subvention account with FirstBank with at least 3 months subvention received into their account. This excludes Local Council Development Authorities (LCDAs), Local Government Education Authorities and Emirate Councils.
Question: What is the tenor for LGA Revenue Overdraft?
Ans: Tenor is 12 months with 30 days clean up cycle subject to the expiration of the tenure of the current Local Government Executives.
Question: What collateral is required to access the facility?
Ans: No tangible collateral is required, but an Irrevocable domiciliation of the LGAs monthly subvention and other sources of income is required.
Question: What is the maximum loan amount accessible?
Ans: The maximum amount accessible is N50Million.