“The church has come to become a resource center within the church space… we wanted to put up a conference that will point people in directions where they can actually source cheaper capital and also patient capital.”
This quote from Covenant Capital sums up a revolutionary movement that will change Nigeria’s commercial environment in 2026. Churches across the nation are becoming active participants in economic empowerment in addition to providing spiritual assistance. Faith-based organizations are creating new avenues for entrepreneurs who have long been shut out of traditional financing, such as the Bank of Industry’s innovative non-interest banking window, church-led grant programs, and microfinance efforts.
This comprehensive guide explores the diverse landscape of church-backed business loans in Nigeria, highlighting the opportunities, programs, and practical steps for accessing faith-aligned funding.
The 2026 Landscape: Why Church-Backed Loans Are Booming
Several converging factors have made 2026 a watershed year for faith-based financing in Nigeria:
The Rise of Ethical and Non-Interest Finance
In February 2026, the Bank of Industry (BoI) received formal approval from the Central Bank of Nigeria to operate a non-interest banking window . This landmark decision allows Nigeria’s largest development finance institution to offer Sharia-compliant and ethically aligned financing products to businesses that traditionally avoid interest-based lending .
Managing Director Olasupo Olusi described the approval as “a pivotal moment in the bank’s journey of transforming Nigeria’s industrial sector. We can now reach a new category of borrowers who previously could not access formal funding” .
Growing Demand for Faith-Aligned Capital
Nigeria hosts one of Africa’s largest non-interest finance markets, driven by sovereign sukuk issuances and a growing network of non-interest banks . According to CFG Africa, Sukuk issuances by the Federal Government have attracted subscriptions exceeding ₦2.21 trillion against offers of just ₦300 billion—a staggering 735% oversubscription rate .
This demand reflects a broader shift: “There are people who believe, because of their faith, they should not invest in certain traditional investments. By carving out this space, you expand investable funds around Nigeria and allow people to live a wholesome life, investing according to their orientation without feeling they are losing out,” explained Babajide Lawani, CEO of CFG Africa .
The Church as Economic Engine
Across denominations, Nigerian churches are recognizing their role in economic empowerment. As Covenant Capital’s Darabidan noted, “Beyond accessing cheaper funds, one of the primary reasons the church is hosting SMEs funding conferences was to point people to funding opportunities that can help augment their purchasing power in order to do business” .
Major Church-Backed and Faith-Aligned Loan Programs in 2026
1. Covenant Capital (Covenant Nation)
| Details | Information |
|---|---|
| Organization | Covenant Capital (arm of Covenant Nation) |
| Focus | Patient capital, single-digit interest loans, grants |
| Key Events | SME Funding Conference (ongoing), bootcamps, grant events |
| Target | Church members, MSMEs |
Covenant Capital has positioned itself as “a resource center within the church space” focused on providing patient capital and affordable funding to help businesses scale . Their approach emphasizes:
- Financial literacy: Building participants’ understanding of how to access funding opportunities
- Capacity building: Masterclasses and workshops to help entrepreneurs better position their businesses
- Grant opportunities: Following bootcamps, participants pitch their businesses for grant funding
“Opportunities follow knowledge,” Darabidin emphasized. “We believe that.” The church plans a grant event where MSMEs will pitch their ideas as part of a three-day bootcamp, with grants awarded to selected businesses.
2. Bank of Industry (BoI) Non-Interest Banking Window
| Details | Information |
|---|---|
| Launch Date | February 2026 |
| Products | Murabaha (cost-plus financing), Ijarah (leasing), Istisna (construction financing) |
| Target | MSMEs, manufacturers, agribusinesses, ethically motivated enterprises |
| Structure | Asset-backed, profit-sharing, interest-free |
The BoI Non-Interest Banking Window represents the most significant development in Nigeria’s faith-based financing landscape in 2026 . Operating under CBN approval, this initiative:
- Eliminates interest payments: Financing is structured around tangible assets and shared risk, not interest accrual
- Supports asset acquisition: Beneficiaries can access financing for raw materials, equipment, and other asset-backed projects
- Reaches underserved segments: Serves businesses that traditionally avoid conventional credit for religious or ethical reasons
The BoI’s 2025-2027 strategic pillars focus on digital automation, financial inclusion, and sector-specific funding designed to support over two million enterprises nationwide . With 33 branches, specialized subsidiaries, and 416 Business Development Service Providers (BDSPs), BoI has the infrastructure to deliver low-interest loans and technical assistance at scale.
3. The Jerry Eze Foundation Grant Scheme
| Details | Information |
|---|---|
| Founder | Pastor Jerry Eze, Streams of Joy International |
| Fund Size | $300,000 |
| Recipients | 100 young entrepreneurs |
| Grant Amount | Minimum $3,000 per recipient |
| Sectors | Agriculture, Technology, Manufacturing |
In January 2026, Pastor Jerry Eze unveiled a $300,000 grant scheme aimed at supporting young entrepreneurs across Nigeria . The initiative, administered through an independent organization to ensure transparency, focuses on three key sectors:
- Agriculture
- Technology
- Manufacturing
“This is an early insight into a larger plan,” Pastor Jerry explained, describing the announcement as a “teaser” for broader efforts. “The Jerry Eze Foundation caters for the total man,” he added, emphasizing the foundation’s commitment to holistic empowerment blending spiritual growth with practical economic support.
4. AG Mortgage Bank ES-TIW Initiative
| Details | Information |
|---|---|
| Partner | AG Mortgage Bank with HACEY (not-for-profit) |
| Annual Commitment | ₦100 million |
| Beneficiaries | 500 women-led businesses annually |
| Target Denominations | 60% from Assemblies of God Church |
| Loan Terms | Single-digit interest, 12-month maximum duration |
AG Mortgage Bank’s ES-TIW (Empowering Societies Through Investment in Women) initiative launched in late 2024 with a clear mission: support women-led businesses across five states—Lagos, Abuja, Edo, Delta, and Abia .
CEO Ngozi Anyogu explained the program’s unique structure: “With a strong Environmental, Social and Governance framework built by Deloitte, we have decided that in this first one year, we would reach out to 500 women with 300 women beneficiaries drawn from the Assemblies of God church.”
To ensure sustainability, beneficiaries are:
- Provided business education
- Organized in small clusters of five
- Assigned mentors for guidance
5. EYN Microfinance Bank (Ekklesiyar Yan’uwa a Nigeria)
| Details | Information |
|---|---|
| Denomination | Church of the Brethren in Nigeria |
| Focus | Micro-loans for farmers, business support |
| Scale | Hundreds of millions of Naira under management |
| Requirement | All EYN staff must have accounts |
The EYN Microfinance Bank represents one of the most established church-backed financial institutions in Nigeria . Operating under government regulation, the bank provides a variety of loans to EYN members and others, with approximately 60% being micro-loans to farmer groups .
The bank’s structure reflects a broader philosophy: instead of investing pension funds in external markets, EYN invests in itself. Their successful businesses—Crago Bread, Kulp Water, and a cement block-making business—were capitalized by the pastors’ and employees’ pension fund. All are profitable, with Kulp Water being the most profitable as water comes from the bore hole on the headquarters property .
How Church-Backed Loans Work: Key Mechanisms
Asset-Backed and Profit-Sharing Models
Unlike conventional loans that charge interest, most faith-aligned financing operates on different principles :
| Instrument | Mechanism | Best For |
|---|---|---|
| Murabaha | Cost-plus financing; bank buys asset and sells to customer at agreed markup | Equipment, machinery, raw materials |
| Ijarah | Leasing arrangement; bank purchases and leases asset to customer | Vehicles, machinery, property |
| Istisna | Construction financing; progressive payments as project phases complete | Building projects, manufacturing |
| Profit-sharing | Bank provides capital, shares in business profits | Working capital, business expansion |
| Micro-loans | Small-scale lending to farmer groups and micro-enterprises | Agricultural inputs, small business startup |
The Role of Technology
Digital transformation is central to expanding access. BoI’s 2025-2027 strategy includes “full digital automation of loan applications, disbursements, and impact tracking” . This digital-first approach aims to ensure that the “consciousness of the buyer” is met with transparent, accessible services.
Grants vs. Loans
Church-backed programs increasingly blend grants and loans :
- Grants: No repayment required; focused on specific sectors (Jerry Eze Foundation)
- Soft loans: Single-digit interest; longer repayment terms (Covenant Capital, AG Mortgage Bank)
- Microfinance: Small-scale lending with flexible terms (EYN)
Who Is Eligible?
General Eligibility Criteria
Most church-backed loan programs require:
- Membership or affiliation: Many programs prioritize church members (e.g., 60% of AG Mortgage Bank beneficiaries from Assemblies of God)
- Business registration: Formal or informal business structure
- Sector alignment: Priority sectors often include agriculture, manufacturing, technology, and women-led enterprises
- Capacity building commitment: Participation in training, mentoring, or bootcamps
Specialized Programs
| Program | Primary Beneficiaries |
|---|---|
| BoI Non-Interest Window | MSMEs, manufacturers, agribusinesses, ethically motivated enterprises |
| Covenant Capital | Church members, SMEs seeking patient capital |
| Jerry Eze Foundation | Young entrepreneurs (agriculture, tech, manufacturing) |
| AG Mortgage Bank ES-TIW | Women-led businesses; Assemblies of God members |
| EYN Microfinance | EYN members; farmer groups |
The “Patient Capital” Approach
Covenant Capital emphasizes the importance of patient capital—funding with reasonable single-digit interest rates and flexible terms that allow businesses to grow sustainably . This stands in contrast to traditional lenders who may demand immediate returns that strain emerging enterprises.
The Muslim Economic Summit and Broader Ethical Finance Movement
While not strictly “church-backed,” the Muslim Economic Summit (MES 1.0), held January 17-18, 2026, at the University of Lagos, represents the parallel movement in Islamic finance . The summit theme, “Faith, Finance & the Future: Empowering Youths, Women & Businesses for a Prosperous Ummah,” brought together Islamic finance experts, entrepreneurs, and development partners.
The summit’s approach mirrors church-backed initiatives:
- Pre-summit training: Over 1,000 youths and women trained in digital marketing, urban farming, solar installation, and mini-import/export
- Sustainable Waqf Fund: A long-term financing mechanism for future empowerment initiatives
- Shariah-compliant businesses: Focus on ethical, halal enterprise
This parallel movement reinforces the broader trend: across Nigeria’s religious communities, faith-based economic empowerment is gaining momentum .
How to Access Church-Backed Loans in 2026
Step 1: Identify Your Church’s Programs
Start by connecting with your local church leadership. Ask:
- Does our denomination have a microfinance bank or credit program?
- Are there upcoming SME conferences or bootcamps?
- What partnerships exist with financial institutions?
Step 2: Develop Financial Literacy
As Covenant Capital emphasizes, “Opportunities follow knowledge.” Before applying:
- Attend SME funding conferences and workshops
- Understand your business cost structure
- Prepare proper books and financial records
Step 3: Prepare Your Business
Successful applicants typically have:
- A clear business plan
- Cost structure analysis (how much to sell, how much to keep)
- Proof of business operations
- Understanding of the specific sector’s opportunities
Step 4: Apply Through the Appropriate Channel
| Program | Application Channel |
|---|---|
| BoI Non-Interest Window | BoI branches; BoI website; Business Development Service Providers |
| Covenant Capital | Church conferences; bootcamps; direct outreach |
| Jerry Eze Foundation | Jerry Eze Foundation announcements; independent administering organization |
| AG Mortgage Bank | Assemblies of God Church; HACEY organization |
| EYN Microfinance | EYN headquarters; church leadership |
Step 5: Participate in Capacity Building
Many programs require participation in:
- Bootcamps and masterclasses
- Business clusters (small groups of 5 for mentoring)
- Ongoing training sessions
These aren’t just requirements—they’re opportunities to strengthen your business.
Common Challenges and How to Overcome Them
Challenge 1: Limited Awareness
Problem: Many entrepreneurs don’t know these programs exist.
Solution: Stay connected to your church community. Attend conferences. Sign up for newsletters from faith-based organizations.
Challenge 2: Collateral Requirements
Problem: Some programs still require collateral that small businesses lack.
Solution: Look for programs specifically designed for MSMEs (like BoI’s) that use alternative credit assessment methods. The asset-backed nature of non-interest financing means the financed asset itself often serves as collateral.
Challenge 3: Financial Literacy Gaps
Problem: Entrepreneurs don’t know how to properly present their business.
Solution: Seek out the training programs offered by these same organizations. As one panelist advised: “Come and do the cost structure. How much should I sell; how much should I keep. Don’t just tell me—do your books, show me how” .
Challenge 4: Currency Volatility
Problem: The Naira’s fluctuation affects loan terms and business planning.
Solution: Work with programs that offer asset-backed financing tied to real assets rather than cash loans. This provides a hedge against currency devaluation.
The Future of Church-Backed Business Loans
Several trends will shape this sector beyond 2026:
Expansion of Non-Interest Banking
With BoI’s entry into non-interest banking, the market is poised for significant growth. Analysts expect this to “foster a more competitive financing environment, encouraging other development finance institutions to adopt similar frameworks” .
Technology-Driven Access
Digital platforms will make it easier for MSMEs to access funding. BoI’s digital automation strategy points toward fully online applications and disbursements.
Increased Collaboration
Partnerships between churches, financial institutions, and development organizations will multiply. The AG Mortgage Bank-HACEY partnership is one model; Covenant Capital’s work with LEAP Africa and other organizations is another.
Focus on Specific Sectors
Programs are increasingly targeting agriculture, manufacturing, and technology—sectors with high employment and growth potential. As Pastor Jerry Eze’s focus on these three sectors demonstrates, there’s growing recognition that targeted support yields greater impact .
Key Takeaways
| Program | Best For | Key Feature |
|---|---|---|
| BoI Non-Interest Window | MSMEs needing asset financing | Interest-free; government-backed; large scale |
| Covenant Capital | Church members seeking patient capital | Grants; bootcamps; financial literacy |
| Jerry Eze Foundation | Young entrepreneurs in agritech/manufacturing | Grants ($3,000 minimum) |
| AG Mortgage Bank ES-TIW | Women-led businesses | Single-digit interest; mentoring clusters |
| EYN Microfinance | Farmers; EYN members | Micro-loans; proven track record |
Conclusion: Faith, Finance, and the Future
Nigeria’s church-backed business loan movement represents more than just alternative financing—it’s a reimagining of the church’s role in society. From the BoI’s non-interest banking window to Pastor Jerry Eze’s $300,000 grant scheme, from Covenant Capital’s patient capital to EYN’s microfinance bank, faith-based institutions are stepping into the gap left by traditional lenders.
As Covenant Capital’s Darabidan noted, “We believe that opportunities follow knowledge.” The church is not just providing funds; it’s building capacity, teaching financial literacy, and creating communities of mutual support. The women clustered in groups of five with mentors; the farmers receiving quality seeds; the young entrepreneurs pitching for grants—these are the building blocks of a new economic order.
For Nigerian entrepreneurs, the message is clear: if you have a vision, a business plan, and the willingness to learn, there is a faith-based program ready to support you. The doors are open. The resources are available. The community is waiting.
Your business is not just your livelihood—it’s your ministry. And in 2026, the church is ready to invest in it.