Have you got a great business idea, that probably needs funding, at least enough capital to kick off your startup business in Nigeria? In this post, I’ll be sharing with you 7 awesome ways to fund your business in Nigeria.
Insufficient funding is the reason that many Nigerian entrepreneurs fail. Although you don’t need money to start a business, capital is essential for the establishment of a business.
No matter if you’re working on a local business or an online store, all businesses require at least some initial funding in order to get started.
The big question is: How can I raise money for my business? We’ll show you 7 ways to fund your business in Nigeria.
It is important to remember that merely getting funding does not guarantee success. To launch and manage a business in Nigeria, you need patience, hard work, and the right skills.
How to fund your business in Nigeria
Every startup company in Nigeria, aside from personal savings and grants from friends and family, has the potential of securing funding from any one of the listed funding sources.
1. Tony Elumelu Foundation (TEF) Program
The TEF Enterpreneurship Program was founded in 2015 by Mr. Tony Elumelu, one of Africas largest philanthropists.
The program is targeted at African entrepreneurs and has a commitment of $100 million to support 10,000 entrepreneurs.
This initiative, among others, aims to create more than a million new jobs and to add approximately $10 billion to the African economy.
Each year, the funds support approximately 1000 entrepreneurs from Africa. The number keeps growing. It promotes all types of entrepreneurship on the continent as a foundation dedicated to Africa’s economy.
2. Bank of Industry (BOI)
This is another place that Nigerian entrepreneurs who need to fund their business can get some funds for their project. It is praised for its uniqueness in helping entrepreneurs from all walks of Nigeria.
You can visit the Bank of Industry website here. find different funding options for different groups with the Graduate Entrepreneurship Fund (GEF), which is available to members of the National Youth Service Corps.
You will first need to submit your business ideas. Then, you will be selected for a grant amount of between 500,000 and 2,000,000 (all in Nigerian local currency, Naira).
Other funding programs are available to boost business growth rates. These funds include Nolly Fund for investors in Nollywood and Cottage Agro Processing Fund (CAPF) Fund).
3. GroFin FUND
GroFin Fund is a body that finances and supports startup businesses in Africa and the Middle East. The organization currently operates in nine African countries and has such investors as Shell Foundation, KFW and Norfund as sponsors.
There are approximately $500 million dedicated to financing small and medium enterprises in Nigeria. It has five platforms: Aspire Nigeria Fund and Aspire Small Business Fund.
Aspire Small Business Fund provides support for businesses in Nigeria with a minimum $100,000 and maximum $1.5 million. Aspire Growth Fund provides funding for entrepreneurs between $100,000 and $3,000,000, but the funds are usually available over a period of six years.
4. African Development Foundation (ADF)
The ADF is a founded upon a US support initiative to help African entrepreneurs through providing seed capital for their startup business.
It offers technical assistance to youth-led and energy-related enterprises, as well as agriculture and energy.
The foundation also offers monitoring and training to help businesses grow and progress. The foundation offers mentorship opportunities for entrepreneurs and helps businesses at all stages of their growth.
5.African Women’s Development Fund – AWDF
The African Women’s Development Fund program aims to promote gender equality in Africa by empowering women. It provides financial and other forms of support to women.
Their network includes approximately 1,160 women organizations from more than 40 African countries.
Apart from the personal opportunities, special funding is available to organizations in their network. This is meant to increase the voice of women through financial independence and training.
6.LoftyInc Afropreneur Funds
The LoftyInc Afropreneur Funds was started to help African entrepreneurs with a startup business as a way of helping society and Africa at large.
Its main goal is to use social impact investments to contribute to social change. The bottom line is lifting millions of Africans from poverty, illiteracy, and sickness.
The work of the organization spans energy, infrastructure, social impact (including healthcare and education) and leverages technology, global partnerships, and best-in-class processes.
7. Other sources of funding
Alternative funding options are becoming more popular. These include crowd-funding platforms like Kickstarter and IndieGoGo that allow entrepreneurs to raise funds through donations from supporters all over the internet.
It’s easy to create a campaign, name the amount you wish to raise, and set up perks for donors who pledge a certain amount.
You can also raise money for your campaign for a specific period with Kickstarter. However, you won’t get the money if the target amount is not reached. IndieGoGo allows you to keep any money raised for a small percentage of the proceeds.
Although it is the hardest aspect of starting a business, it can also be the most rewarding and fulfilling. You can get your business started once you have been approved for a loan or found an investor.
Although it may take time to succeed, having partners will keep your business afloat. Ideahub is here to help you succeed by being your partner. Best of luck!