Access N50 Million from FirstBank LGA Revenue Overdraft to Fund Your LGA Projects in Nigeria Without Collateral
FirstBank LGA Revenue Overdraft gives Nigerian LGAs quick access to up to N50 million with flexible 12 month terms, no collateral required and irrevocable domiciliation of monthly subventions to fund working capital and small projects
Why many LGAs in Nigeria prefer this facility
FirstBank LGA Revenue Overdraft has become a go-to short-term finance option for Local Government Areas (LGAs) across Nigeria because it delivers quick access to funds without the delays of traditional loans. With a clear focus on working capital and small capital projects, the overdraft lets LGAs tap up to N50 million when subventions are domiciled at FirstBank.
The product’s simplicity and the absence of tangible collateral make it attractive to smaller councils that need immediate liquidity. By leveraging the FirstBank LGA Revenue Overdraft, LGAs can keep projects moving while maintaining predictable cashflow management.
Key features and eligibility
The overdraft offers a single obligor limit equal to 50% of average net monthly subvention, capped at N50 million, and runs on a 12-month tenor with a mandatory 30-day clean-up cycle. Irrevocable domiciliation of monthly subventions and receipts into the FirstBank subvention account is a strict requirement for approval.
Eligible LGAs must have their subvention account at FirstBank and show at least three months of subvention inflows to qualify for the facility. The offer excludes LCDAs, Local Government Education Authorities and Emirate Councils, so it is tailored specifically for recognised Local Government Areas.
How to apply and required documentation
Application is straightforward: visit your nearest FirstBank branch and request the LGA Revenue Overdraft product; a dedicated relationship officer will guide you through the steps. Expect to present council resolution documents, proof of subvention inflows for at least three months, and account statements for domiciliation verification.
Other standard documents include certified copies of council executives’ appointments and any mandated forms for irrevocable domiciliation of subventions and other internally generated revenue. The bank assesses the average monthly subvention to determine the overdraft limit, so accurate statements speed up approval.
Practical benefits for local projects and repayment
Accessing up to N50 million via the FirstBank LGA Revenue Overdraft enables LGAs to complete capital works like feeder roads, market stalls and small health upgrades without waiting for delayed allocations. This overdraft supports responsive governance by enabling councils to meet urgent needs and keep contractors and suppliers paid on time.
Repayment is managed through the irrevocable domiciliation of monthly subventions, which reduces recovery risk for the bank and removes the need for physical collateral from the LGA. The result is a practical financing route that balances affordable credit access with responsible cashflow planning for sustainable local development.