In the dynamic world of entrepreneurship, access to finance is the heartbeat of every business, fueling innovation, expansion, and success. For visionary entrepreneurs in Nigeria, securing the crucial seed capital for growth has become more challenging in the era of costly and elusive bank credit. However, a multitude of funding opportunities are ready to empower small business owners, and here are seven you should consider to propel your business to new heights:
- Tony Elumelu Foundation (TEF)
- TEF, Africa’s prominent philanthropic organization, has empowered 200,000 entrepreneurs across 54 African nations with seed funding of $5,000 each. A few years ago, TEF set aside $100 million for African entrepreneurs. If your business ventures into agriculture, fashion, design, light manufacturing, ICT, or solid minerals, you may apply for the Tony Elumelu Foundation Fund.
- Bank of Industry (BOI)
- BOI offers numerous funds catering to entrepreneurs at every level. These include the Graduate Entrepreneurship Fund (GEF) for National Youth Service Corps (NYSC) members, Cottage Agro Processing (CAP) Fund for small and medium agro processors, Nolly Fund for the Nollywood industry, Fashion Fund for designers and value chain participants, and sector-specific funds like the CTG Fund for textile makers and the Cassava Bread Fund. BOI also manages funds for the automotive industry and the Government Enterprise and Empowerment Program funds (MarketMoni, TraderMoni).
- Norrenberger
- Norrenberger, an integrated financial services group, has recently introduced an entrepreneurship fund targeting 5,000 youths with a N500 million startup grant. This initiative aims to provide alternative financing, enabling innovative ideas to flourish and existing businesses to expand. The program’s mission is to empower young graduates, reduce unemployment, create wealth, and ensure national security.
- Jack Ma Africa’s Business Heroes
- Africa’s Business Heroes (ABH), Jack Ma Foundation’s philanthropic program in Africa, is dedicated to supporting and showcasing local entrepreneurs making a positive impact. Entrepreneurs from all 54 African countries are welcome to participate, with the top 10 finalists sharing a $1.5 million grant annually. This 10-year program recognizes 100 African entrepreneurs, offering grant funding, training programs, and comprehensive support across sixteen sectors, including agriculture, education, healthcare, and more.
- Orange Corners
- Orange Corners is an incubation program providing aspiring Nigerian young entrepreneurs with a cutting-edge facility for collaboration and innovation. Developed and funded by the Netherlands embassy in Lagos, and implemented by the FATE Foundation, Orange Corners supports entrepreneurs aged 18 to 35 with innovative business models in Education, Health, Agriculture, and the Creative sector.
- Lagos State Employment Trust Fund (LSETF) Loans
- LSETF commits N25 billion to support SMEs. Under the micro category, businesses can access up to N500,000 loans with a five percent interest rate and a one-year tenor. For small businesses, the fund offers up to N5 million for a three-year tenor. This initiative, started by Akinwumi Ambode, the former Lagos State governor, continues to make an impact.
- Crowdfunding
- Crowdfunding has emerged as a powerful tool for entrepreneurs to raise funds for their innovative business ideas. This practice involves collecting small contributions from a large number of people, often via the internet. It is used to fund various activities such as journalism, political campaigns, disaster relief, and start-up funding. While it’s still relatively new in Nigeria, some entrepreneurs are leveraging crowdfunding to secure funds for their business endeavors.
These seven funding opportunities represent a lifeline for businesses in Nigeria, providing a variety of avenues to secure the financial support needed for growth, innovation, and success.
