Self Employed Loan in Nigeria

In Nigeria, the self-employed path is gaining popularity as a means to attain financial independence. The surge in freelancers, tradespeople, and investors indicates a growing trend towards self-employment. However, due to the unpredictable nature of income, securing a self-employed loan in Nigeria might become a crucial step for many individuals.

Who is Considered a Self-Employed Individual?

A self-employed person is someone who doesn’t hold a specific job under any particular employer. This means they don’t receive a regular salary. Instead, they engage in direct transactions with businesses and earn income from these interactions. Unlike traditional employment, taxes are not withheld by the employer, making it the individual’s responsibility.

Self-employment can encompass various occupations, often involving specialized skills and a focus on a particular field.

Understanding Self-Employed Loans in Nigeria

Self-employed loans in Nigeria are financial services tailored for individuals who are self-employed. These loan schemes and their features may vary among different microfinance institutions.

These loans are designed to alleviate financial constraints, whether it’s for executing a contract or for personal reasons.

Distinguishing Self-Employed Individuals from Business Owners

It’s important to note that self-employed individuals and business owners (SMEs) are not synonymous. The tax regulations that apply to them are distinct. While a business owner might oversee operations and have employees, they technically become employees of their own company and receive a salary. Conversely, a self-employed person is often the sole operator of their business.

Where Can You Obtain a Self-Employed Loan in Nigeria?

While there is a distinction between self-employed individuals and business owners, many financial institutions in Nigeria often categorize them together. This includes microfinance banks, commercial banks, fintech digital-based companies, individual investors, and corporate investors.

Conditions for Obtaining a Self-Employed Loan

The conditions for obtaining a self-employed loan in Nigeria can vary widely from one financial institution to another. Microfinance banks typically offer more accessible loans with fewer paperwork requirements and less stringent eligibility criteria. However, they may not provide as substantial a loan sum as commercial banks, which often have more rigorous application procedures.

Individuals and corporate investors may not be reliable sources for obtaining a self-employed loan, as they may prefer equity investments over traditional loans offered by banks.

Fintech digital platforms provide the easiest route to obtaining a self-employed loan in Nigeria, with minimal requirements aside from basic banking information. However, they may offer smaller loan amounts compared to other lenders.

Documentation Required for Obtaining a Self-Employed Loan

To secure a self-employed loan in Nigeria, you’ll typically need:

  1. A functional bank account and a bank verification number (BVN).
  2. A valid means of identification.
  3. A completed loan request form.
  4. Any additional documents requested by the lending institution.


Securing a self-employed loan can be a swift solution to financial challenges for self-employed individuals in Nigeria. Whether you need funding for your business or contracts, these loans offer a valuable resource. Remember, the availability and terms of self-employed loans may differ among various financial institutions, so it’s important to explore your options and choose the one that best fits your needs.

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