TOP SEVEN (7) FUNDS FOR NIGERIAN SMES TO WATCH OUT FOR IN 2019
Top Seven (7) Funds for Nigerian SMEs to Watch out for In 2019
As we approach this new year, these are some of the different funding opportunities available to start-ups, SMEs and Nigerian Entrepreneurs in 2019. These funds are in form of specialized loans at unit digit interest, grants and angel funds. The general criterion for accessing these funds is the capacity to present a bankable and viable business plan. They will need you to show that you have a good understanding of your business, whether it be a start-up or an existing business seeking to expand. Certain points such as your value proposition, management competence, clear marketing and sales strategy among others are what they look out for. Without much ado, these are the seven funds:
#1. BoI Funds
If there is anywhere Nigerian entrepreneurs can get cheap or single-digit funds (often at nine percent lending rate), it’s from the Bank of Industry (BoI). This development finance institution (DFI) has been rated by many local and international agencies as one of the best managed banks in the world.
The BoI has a number of funds that entrepreneurs of all levels can access. First is the 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 are 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 fashion value chain.
In fact, the Bank has other matching and managed funds, including a fund for the automotive industry. Through 122 business development experts, entrepreneurs can access funds easily. It is also easy to access some of the Bank’s products through its website.
The Bank has a N5billion fund from Africa’s richest man Aliko Dangote to finance SMEs at a single digit rate.
#2. Tony Elumelu Fund
Tony Elumelu Foundation has earmarked $100 million for 10,000 African entrepreneurs, broken into tranches of $10 million for 1,000 entrepreneurs every year for ten years. 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 on-going Tony Elumemu Fund. You may be lucky to be one of 1,000 entrepreneurs to be shortlisted.
#3. GroFin Fund
GroFin, a development financier, has committed over $500 million to funding Nigerian micro, small and medium businesses (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 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.
#4. Shell LiveWire
The Shell Petroleum Development Company of Nigeria Limited has a number of funds for young entrepreneurs, including women.
Through the program, Shell provides support, access to training, guidance, and business mentorship to young entrepreneurs and potential entrepreneurs between the ages of 18 and 35.
The program operates mainly in the Niger Delta region and aims to inspire, encourage and support young people to start up their own businesses through the provision of finance and training for young entrepreneurs, according to Shell.
#5. 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.
#6. Social Intervention Fund of FG
This 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’s tenor. The criteria for accessing the fund include membership of a business organization.
Oxfam has a number of funds for Nigerian entrepreneurs. Oxfam, an international confederation of charitable organisations focused on the alleviation of global poverty, recently disbursed €100 million to high-impact SMEs in Nigeria through Nextzon.
Serial Entrepreneur - International Business Planning Consultant - Speaker - Trainer - Author - Blogger - Network Marketing professional.
- 2018 SME Business Trainer and Coaching Advisor at GIZ for SME Loop.
- 2018 YALI RLC Online Cohort 9
- 2017 Fellow, Inspire Africa Train-the-Trainer Entrepreneurship programme sponsored by US Consulate Lagos and the Dickey Center, U.S.A.
- 2016 Fellow, Tony Elumelu Foundation Entrepreneurship Programme
- 2015 Top 50 Innovative Entrepreneurs, BET5 by Diamond Bank and EDC, PAU.
He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan-Atlantic University (PAU). Through his training, mentoring, speaking and coaching programmes, he has empowered many young people over the years to start and grow their own business, build wealth, create multiple streams of income and achieve financial independence.
- He is a Certified Trainer in Design Thinking by the U.S Consulate, Lagos and the inspire Africa Entrepreneurship Institute.