FirstBank LGA Revenue Overdraft Gives Nigerian LGAs Up to N50 Million with No Collateral and Flexible 12-Month Terms

Overview of FirstBank LGA Revenue Overdraft

The FirstBank LGA Revenue Overdraft is a short-term financing facility tailored for Nigerian Local Government Authorities (LGAs) that need immediate liquidity. With access up to N50 million, this overdraft requires no tangible collateral and is structured to align with regular subvention inflows so councils can close temporary funding gaps without long-term borrowing.

Designed for Local Government Councils domiciled with FirstBank, the FirstBank LGA Revenue Overdraft permits drawing above the account balance within a defined tenor. It supports working capital, small capital projects and ensures monthly subvention domiciliation is used as security, making it practical for councils across states in Nigeria.

Key features and benefits

Core features of the FirstBank LGA Revenue Overdraft include a single obligor limit of 50% of average net monthly subvention up to N50 million, a 12-month tenor and a mandatory 30-day clean-up cycle. The product is purposely simple: no equity injection and no physical asset collateral, which helps less-asset-rich LGAs access funding fast.

Benefits are clear for local administrators: competitive pricing compared with emergency loans, flexible repayment terms aligned to monthly allocations, and a fast application route through FirstBank branches. The FirstBank LGA Revenue Overdraft is ideal for time-sensitive projects and ensures continuity of essential local services without bureaucratic delays.

Eligibility and how to apply

Eligibility for the FirstBank LGA Revenue Overdraft requires the LGA to have its subvention account domiciled at FirstBank and to have received at least three months of subvention into that account. Note that LCDAs, Local Government Education Authorities and Emirate Councils are excluded from this facility.

To apply, visit your nearest FirstBank branch and request the LGA Revenue Overdraft application. The bank will verify subvention history, confirm domiciliation and work with the council to set an overdraft limit. Documentation is straightforward, and relationship managers in FirstBank’s branch network can guide turnaround times and disbursement schedules.

Practical impact and management tips

Putting the FirstBank LGA Revenue Overdraft to use can fast-track minor infrastructure like feeder roads, health center upgrades and emergency procurements without disrupting existing capital plans. Access to N50 million enables councils to bridge periods when allocations are late, ensuring projects don’t stall and citizens continue to benefit from services.

Good practice is to align overdraft drawdowns with expected subvention cycles, keep rigorous cashflow forecasts and communicate repayment plans to stakeholders. Engage your FirstBank relationship manager early to structure repayments within the 12-month tenor and to explore complementary facilities should larger or longer-term financing be required.