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11 sure ways to source for funds for a start-up business in Nigeria


In this country, a lot of entrepreneurs wishing to begin a new venture go through lots of problems just trying to get their businesses running. One such problem is getting funds to start that business. This has been a major drawback for most intending business owners in the country today. While it takes some people a short time to achieve this, it takes others a long period to get what is required to kick-start their businesses.

In this article, you will discover 11 brilliant ways you can acquire the money you need for your emerging venture.

Of course, you know all that relates to business has its upside and downsides so here you will see why you should use that source and also some disadvantages that come with it.

Ultimately you are the one to decide which option to go for so knowing everything about the varied options available is necessary.

Before delving deeper into this piece, you may spare some time to look into Federal government loan schemes in Nigeria, TEF foundation and Free Ishiba grant for business development – perhaps may provide additional insights in your quest for personal loan or finance.

That’s all right! Let’s look at the different ways of funding for new businesses in Nigeria:

The money you have saved up

While thinking of beginning a new business, thoughts of getting the money you need would have played out in your subconscious. So, how much money do you have in your savings? This is the first action plan that is necessary for you. Once you know how much you have, you will then be able to conclude if you require more money or not. What you currently have will determine what you will ultimately need in the long run.


A huge chunk of this saved up money will be very useful in getting some needed things for your business.


  • It may not be enough to even start up
  • You might have other responsibilities that need to be taken care of.

Close friends, close family members and relatives

One other way to get fund sourcing for your business is by asking friends that are close to you and also family members and relatives. These groups of people understand you and should be in a better place to give you the assistance you need to get your business on its feet.

So before embarking on other means, try doing this and I am sure you would get at least more than half of what you are looking for.


  • They might be able to assist you to an extent
  • They may give you the right push you need to start off
  • They will encourage you even if it looks difficult to implement


  • What you get from them might not be sufficient
  • Some of them will discourage you and try to discourage you from pursuing it
  • You may not even get any help from them

Business grants

Are you aware that there are now so many business grants available for Nigerians who either already has established businesses or just want to begin? If only you have the right information at the appropriate time. A lot of Nigerians are now benefitting from these opportunities.

Examples of some recent business grants are:

  • The entrepreneurship programme organized by Tony Elumelu; otherwise known as TEEP.
  • The programme organized by YouWiN.
  • The entrepreneurship programme organized by Bank of Industry
  • The trust fund programme organized by Lagos State; also known as LSETF
  • The programme organized by AYEEN which is Africa’s Young Entrepreneurs.

All these and more are there for Nigerians to participate in. As long as you are a Nigerian and are at least 18 years old and you have a realistic business idea, you can apply for them.

Aside from these, there are also business events that take place from time to time in various cities in Lagos.

The just-concluded “Fashion Souk” that took place at Harbour Point, Lagos is one of such examples. Entrepreneurs had the privilege to showcase their business pitches and some of them were given grants of up to N200, 000.

So with this, you can see that the chances out there are endless; just know where they lie and tap into them.


  • These options are many so you choose the one to participate in
  • The money given will be able to settle some business needs
  • The grants given differ; some amounts are higher than some


  • Your business pitch might be rejected
  • Your applications may be rejected more than once
  • The money may not be enough (but really is money ever enough for anyone?)

Getting loans from microfinance banks

Most microfinance banks give out loans to small-scale businesses. You can approach them and with your business pitch, collateral and guarantor you should be able to acquire loans for your business. Also, know that they would include interest rates when you are paying back the loan.


  • Getting loans from such facilities would be a relief to you and your business


  • The interest rate might be pretty high
  • Their deadlines for payment are usually strict. You must pay early enough or face the consequence.

Loans from banks

Are you aware that there are some Nigerian banks who give out loans without asking for collateral? It is as easy as that; once you present your business plan, go through some tests, you will be able to apply for such loans.

Although the banks all have their different processes and requirements for it. The banks are Heritage bank, First Bank, Diamond bank, WEMA bank, and Stanbic IBTC Bank.

For more information on this, it would be nice if you visit them.


It is a relief to be able to get loans without having to drop any form of collateral


You do not know how long it would take to actually receive the loan you want


There are certain business moguls you could partner with to enable your business take full form. It could be a friend who has an established business and has some forms of experience already.

When forming a partnership with someone, a lot of paperwork is done so there is no abuse of agreement.

This partner could provide what is needed in the early stage of the business or he could just add to what you have.


This business partner will support you both financially and materially depending on the business arrangement you both have.


He might want to have a share per cent of the company when it finally picks up or starts making a profit.

Money contributions

A lot of people now engage in daily or weekly contributions to help with their financial needs. This is usually done by a group of people who contribute a certain amount of money based on the arrangement they have.

At the end of the month, someone takes away the bulk of the money while others take theirs in subsequent months until everyone has collected and then the cycle continues.

This could be a source of fund for your start-up business. The money you collect when it gets to your turn could be very helpful.


  • This contribution will be helpful as you are sure of getting a specific amount at a specific time.
  • You can decide to collect your share earlier than when you are meant to. By doing this, you can have an arrangement with someone else to collect in his place instead so you can use the money for your business.


  • You might be disappointed as not everyone might fulfil their contributions
  • You might not be able to collect earlier than someone else because they might also need it at the time
  • If the people in the group are not trustworthy, they can abscond with all the money.


People join cooperatives for many reasons; some join so that they can buy lands with the accumulated money gotten, others want to buy cars or start businesses.

To be able to get money from them, you should have been a member for some time which allows you to borrow a specific sum for a duration.

There are lots of advantages by being a member of a cooperative and so if you are not already a member of one, you might want to think of joining so that when the time comes, you will know where to go to get funds.


  • Cooperatives are more structured and are systematic and so it would be hard for your money to be stolen
  • There is accountability for the allocation of funds


This is another unique way of getting business funds. If you are able to post an appealing business pitch on the internet for people to see so they can invest in your business, you will probably get what you want.

By doing this, it is highly possible to meet genuine people that like what you intend doing and want to be major investors in your business.

It is worth trying out as you never know where your funding will emerge from.


  • You might get help from where you do not expect it
  • You will be surprised at the number of people interested in your business and want to invest in it


  • People may shun you and give you reasons why you should not start that business

Sell your valued property

What valued property do you have that could earn you some money? There are people who sell what they have just so their business can run. If you are desperate to begin your business, I am sure you would want to do all you can to ensure this happens.

It is therefore not a bad idea to sell what you have because you can always buy it back when you stabilize.


The money gotten from the sale of your items will go a long way in settling some aspects of your business


You may not begin making an instant profit for you to replace your items that is if you really want them back.

Angel investors

Do you know that there are some investors who are ready to give you the capital you require to begin your business? All they want in return is some form of ownership equity.

If you are willing to agree to this, then this option is for you.

So which of these options will you choose? Some people choose one or a combination of more than one option which works for them.

It is left to you to decide which to go for. You have seen that each option has its advantages and disadvantages so weigh them and pick the one that suits your business more.

These 11 ways to source for funds have worked for a lot of businesses today and they are doing quite well.

So, choose wisely!

Priscillia Peters

This article was written by Priscillia Peters.