FUNDING OPTIONS AVAILABLE FOR NIGERIAN ENTREPRENEURS
Let’s talk about entrepreneurs, an entrepreneur is an individual who creates a new business to fill a void in the economic system.
Over the years, the Federal Government, State governments and private sector have provided various funding programs to support entrepreneurs particularly Small and Medium Scale Enterprises (SMEs).
Come with us as we walk you through selected funding available for owners of SMEs in Nigeria.
Also Read, Google Opens First Developers Space In Lagos.
LSETF
The Lagos State Employment Trust Fund (LSETF) has a capital base of about N11.1billion and has disbursed loans worth N7.3 billion to no fewer than 11,000 micro, small and medium scale enterprises.
The LTSEF fund is divided into two categories: micro and small businesses. Under micro, businesses can access up to N500,000 loans with an interest rate of 5% and a tenor of one year. For the small business category, businesses can get up to N5million with a tenor of three years. What is the interest rate here? Based on confirmed reports, the turnaround time is short post submitting your application especially when the entrepreneur has demonstrated good business structure and track record.
Application Process – https://apply.lsetf.ng/
Link to LSETF website – https://lsetf.ng/
BOI Funds
The Bank of Industry (BoI) has a number of funds accessible to entrepreneurs at all levels; the Graduate Entrepreneurship Fund (GEF), this is meant for serving members of the National Youth Service Corps (NYSC), the Cottage Agro Processing (CAP)Fund for small and medium agro processors; Nolly Fund for players in the Nollywood industry, as well as Fashion Fund for designers and other players in the value chain.
There are specific funds for manufacturers, including CTG Fund for textile makers, and Cassava Bread Fund. BOI has other matching and managed funds, including a fund for the automotive industry and the Government Enterprise and Empowerment Program funds (MarketMoni, Trader-Moni).
Application processes – to apply for funds, you need to create a log in details https://boi.ng/apply/
Link to BOI website – https://www.boi.ng/funds-management/
Tony Elumelu Fund
Tony Elumelu Foundation has empowered 9,631 entrepreneurs from across 54 countries of Africa with seed funds of mostly $5,000 each. The size of the fund is $100 million few for 10,000 African entrepreneurs. If you are in agriculture, fashion and design, light manufacturing, ICT, and solid minerals, among others, then you may apply for the ongoing Tony Elumelu Fund. You can be one of the 1,000 lucky entrepreneurs to be shortlisted for 2020.
Application process: All applications must be submitted ONLINE through the APPLICATION PORTAL. You must complete an application form by answering a series of mandatory questions and uploading additional documents and identification materials. After submission, you will receive a confirmation email of receipt within 1 working day. https://www.tonyelumelufoundation.org/application-process
Website – https://www.tonyelumelufoundation.org/
Nexim Bank
The funds offered by the Nigerian Export-Import Bank (NEXIM) is good for exporters and manufacturers interested in exploring new markets. NEXIM was established in 1991 with a share capital of N50 billion held equally by the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria. Some of the funds available at the bank include ECOWAS Trade Support Facility for exporters within West Africa, Direct Lending Facility, and Foreign Input Facility, among others.
Application processes – https://neximbank.com.ng/get-loan/
Link to website – https://neximbank.com.ng/
GroFin Fund
GroFin, a development financier, has committed over $500 million to fund Nigerian micro, small and medium business (MSMEs) across the country. The firm has five different types of funds: The Aspire Nigeria Fund, the Growth Africa Fund, the Small Growing Business Fund, the Aspire Small Business Fund, and the Aspire Growth Fund. The Aspire Nigeria Fund, the Growth Africa Fund and the Small Growing Business Fund cater to all parts of Nigeria except the Niger Delta.
The Aspire Small Business Fund provides a minimum of $100,000 and a maximum of $1.5 million to SMEs in Nigeria. The Aspire Small Business Fund and the Aspire Growth Fund cater to the Niger Delta.
The Aspire Small Business Fund provides between $10,000 and $100,000 to small business owners in the oil-rich region, while the Aspire Growth Fund loans between $100,000 and $3 million to businesses to stimulate growth in the area. GroFin provides its funds mostly for a maximum of six years.
Application Process for each – http://www.grofin.com/language/en/apply/
Link to Website – http://www.grofin.com/language/en/entrepreneurs/
Orange Corners
The Orange Corners is an incubation program that provides aspiring Nigerian young entrepreneurs with a dynamic, state-of-the-art facility, where they get the opportunity to collaborate and work with like-minded individuals. Orange Corners Lagos is developed and funded by the Netherlands embassy in Lagos and implemented by FATE Foundation.
It provides funding for prototype business development for entrepreneurs who are within 18- 35 years with innovative business models in education, health, agriculture, and the creative sector.
Application processes – https://ybi.formstack.com/forms/fate_orange_corners_application_v2
Link to BOI website – https://www.orangecorners.com/nigeria/
NESG Startup Pitch Competition
The Nigerian Economic Summit Group (NESG) startup pitch competition is a yearly event organized in partnership with Venture Garden Group and its start-up investment/acceleration arm GreenHouse Capital to develop a strategy for the event that will empower start-ups before and after the competition, provide value to ecosystem players and sponsors while putting NESG on the map as a key supporter of innovation in Nigeria.
In 2017 (NES23), the NESG introduced a Startup Pitch Competition as part of the Annual Nigerian Economic Summit. The pitch competition created an avenue through which, young, innovative Nigerian start-ups engaged with the wide array of stakeholders drawn to NES. Additionally, start-ups participating in the competition had the opportunity to win catalytic funding to help them scale their businesses.
Application Process for each –
Link to Website – https://nesgroup.org/nes25pitch
Please contact for assistance if you need help processing the funds for your business. We are to help you grow.