Top Six Funding Options Available for Nigerian Entrepreneurs in 2023
Access to capital is often challenging for small business owners; however, understanding the available funding options can make a massive difference.
To prepare for the new year (2023), Legit.ng examines some of the funding options available.
Tony Elumelu Foundation
The Tony Elumelu Foundation is the leading champion of entrepreneurship in Africa.
Funding opportunities are open for those in agriculture, fashion and design, light manufacturing, ICT, and solid minerals, among others.
Application is open yearly, and the lucky ones of 1,000 entrepreneurs to be shortlisted will have the opportunity to get funded.
For 2023, the application will open around March 2023. For further details, check here.
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BoI Funds
The Bank of Industry (BoI) provides several funding options for entrepreneurs at low-interest rates.
This funding can be accessed by either Micro businesses, Small Businesses or large enterprises.
One of the funding programmes available is the Graduate Entrepreneurship Fund (GEF), which is meant to serve members of the National Youth Service Corps (NYSC). Candidates can submit their business ideas, which are then reviewed by a team of experts.
The NYSC members whose ideas are marketable and bankable are then selected, trained for four weeks and then given between N500,000 and N2 million.
There is also the Cottage Agro Processing (CAP) Fund for small and medium agro processors, Nolly Fund for players in the Nollywood industry, and the Fashion Fund for designers and other players in the value chain.
For further details, use this link.
AYEEN Financial Grants
Africa’s Young Entrepreneurs Organization (AYE) is the largest entrepreneurship network in Africa.
AYEEN allows entrepreneurs to pitch their business ideas before a panel. The panel assesses each entrepreneur and decides whether to provide financing for the business.
Hundreds of entrepreneurs walk away annually with various degrees of business funding and other forms of empowerment from various investors.
For more details check here.
LSETF Loans
The Lagos State Employment Trust Fund (LSETF) has N25 billion to support SMEs.
The fund is divided into two categories: micro and small businesses. Under the micro, businesses can access up to N500,000 loans with an interest rate of five per cent and a tenor of one year.
For the small business category, businesses can get up to N5 million for a tenor of three years.
The criteria for accessing the funds include membership of a business organisation, which will recommend the business for the loan, Lagos State tax receipt for at least six months, and a Lagos state residency card. This takes three weeks to process.
Other details can be found here.
Fate Foundation Small Business Grants
FATE Foundation is another organisation an entrepreneur seeking funding should target in 2023.
This non-profit, private-sector-led organisation offers various programmes that provide funds and training for small business owners.
For more details, check here.
GroFin Fund
GroFin, a development financier, has committed over $500 million to fund Nigerian micro, small and medium businesses (MSMEs) nationwide.
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 for 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 for 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 frees between $100,000 and $3 million to businesses to stimulate growth in the area.
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GroFin provides its funds mostly for a maximum of six years.
For more details, check here.
Source: Legit.ng
