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Revenue Loans and Overdraft
The LGA Revenue Overdraft is designed to offer short term facilities to Local Government Councils in account relationship with FirstBank.
Loan Information
The LGA Revenue Overdraft is designed to offer short term facilities to Local Government Councils in account relationship with FirstBank. With this credit facility, you can draw, within a specified tenor agreed amounts, exceeding the credit balance in your current account.
- 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.
FAQs
The LGA Revenue Overdraft provides financing to eligible Local Governments to meet working capital requirements and carry out small capital projects.
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.
Tenor is 12 months with 30 days clean up cycle subject to the expiration of the tenure of the current Local Government Executives.
No tangible collateral is required, but an Irrevocable domiciliation of the LGAs monthly subvention and other sources of income is required.
The maximum amount accessible is N50Million.
