AGSMEIS, MSMEDF & DBN: Government Business Funding in Nigeria Explained (2026)
Beyond the banks and loan apps, Nigeria runs government-backed funding for small businesses — usually cheaper, but with more paperwork and specific routes in. Here's what AGSMEIS, MSMEDF and DBN actually are, who they suit, and how to apply the right way.
These are real, low-cost funding routes — apply through official channels only. No legitimate government scheme charges an upfront fee, and no "agent" can guarantee approval. See grant scams to avoid.
AGSMEIS — 9%, no collateral
The Agri-Business/Small and Medium Enterprises Investment Scheme is a CBN programme managed by NiRSAL Microfinance Bank (NMFB). Its appeal:
- Interest fixed at 9% a year — far below commercial rates.
- No collateral required.
- Covers agriculture, manufacturing, ICT, fashion, healthcare and services.
How to apply: pick a CBN-certified Entrepreneurship Development Institute (EDI) to guide your application (they help complete the required training and documents), then apply through the official NMFB portal. Check the accredited-EDI list on the CBN/NMFB site first.
MSMEDF — the CBN's MSME development fund
The Micro, Small and Medium Enterprises Development Fund (established 2013) channels low-cost financing to the MSME sector. A portion (around 10%) is set aside as grants for capacity-building and development, with the rest as loans — often disbursed through participating financial institutions.
DBN — wholesale funding through your bank
The Development Bank of Nigeria is a wholesale development bank — it doesn't lend to you directly. Instead it funds participating banks and microfinance banks who on-lend to MSMEs, typically at better rates and longer tenors than an ordinary commercial loan. So to access DBN money, you apply through a participating bank or MFB. More on it in our business loans comparison.
How they compare
| Scheme | What it is | Rate | Route in |
|---|---|---|---|
| AGSMEIS | CBN scheme, no-collateral loan | ~9% fixed | Certified EDI → NMFB portal |
| MSMEDF | CBN fund (loans + some grants) | Low/concessional | Participating institutions |
| DBN | Wholesale development bank | Concessional (set by your bank) | Via a participating bank/MFB |
| BOI | Federal development bank | ~9% | Directly on boi.ng |
Before you apply
- Register your business — you'll need a CAC number (it can be free) and a Tax ID.
- Get your records in order — bank statements, a simple business plan, valid ID.
- Use official portals only and never pay an upfront "facilitation" fee.
- Compare with commercial options too — see SME loans without collateral and our business loans page.
Frequently asked questions
Is AGSMEIS a grant or a loan? A loan — 9% fixed, no collateral, via NiRSAL MFB. Cheap, but you repay it.
Can I borrow from DBN directly? No — DBN is wholesale. You access its funds through a participating bank or MFB.
Do I need a registered business? Yes — a CAC number and a Tax ID, plus records. Register first, then apply through the official scheme portal.
Educational information, not financial advice. Scheme terms, rates and availability change — confirm current details on the official CBN/NMFB/DBN channels, and never pay an upfront fee.
