Available funds available for Nigerian start-ups
There are a few funds Nigerian start-ups can explore for growth.
The general criterion for accessing these funds is the capacity to present a bankable and viable business plan. The entrepreneur should be clear on where he wants to be in the near future, and must also be able to describe the market for his or her products.
BoI Funds
The Bank of Industry (BoI) has a number of single-digit funds for start-ups, especially for those in creative, agro processing and manufacturing.
The bank has Graduate Entrepreneurship Fund (GEF), which is meant for serving members of the National Youth Service Corps (NYSC). Candidates are allowed to 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, as well as Fashion Fund for designers and other players in the value chain.
The bank has 122 business development experts, who will help start-ups facilitate fund processing.
Tony Elumelu Fund
Tony Elumelu Foundation has $100 million for 10,000 African entrepreneurs. This will continue to be available for another seven to eight years. If you are in agriculture, fashion and design, light manufacturing, ICT, and solid minerals, among others, then apply for the Tony Elumemu fund. You can be lucky to be one of 1,000 entrepreneurs to be shortlisted.
GroFin Fund
GroFin, a development financier, has committed over $500 million to funding Nigerian micro, small and medium business (MSMEs) across the country.
The firm has five different types of fund: 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. GroFin provides its funds mostly for a maximum of six years.
Lagos State Employment Trust Fund
Lagos State 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 percent 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 Lagos state residency card. This takes three weeks for processing.
Social Intervention Fund of FG
A total of N6 billion was allocated under the Social Intervention Fund of the 2017 budget. The criteria for accessing the fund include membership of a business organisation. The fund is for artisans and owners of micro businesses. The artisans of business owners can only access a maximum of N100, 000 at three percent interest rate on a year tenor.
ODINAKA ANUDU