10 Sources of Capital and Funds for your Business in Nigeria

It’s time for you to wake up and be who you want to be! See the top 10 Sources of Capital and Funds for your Business in Nigeria. You just need to check out this list and see how you can take advantage of it to skyrocket your business ideas.


The Problem…

Unemployment and underemployment have become a major challenge to both Nigerian government and Nigerian people.

And sadly, many youths have lofty ideas to start up and manage their businesses, but they are hampered by the fact that they do not really know how to fund their business ideas because they don’t have enough money to do it.

They often walk from one point to another in search of white collar jobs which are non-existent. If you happen to fall into this category of unemployed Nigerian youths, worry no more because I can assure you that this piece will be an opener in the end.

Yes, it will expose you to sources of business funds and how to access them.



#1. Family and friends

One of the sources of business funds is family members and relatives. Borrowing from friends, parents, siblings, uncles, is significant and good if you come from a family where there are able and capable people to lend you.

Sometimes they offer such moneys without asking for interests and you don’t have service the debt. In some families, they have meetings on how to collectively support one of their own. It is a common practice in Nigeria.

Therefore, one of the ways you can generate business funds, be it capital or project money, is through friends and family members.

Some people who are lucky have parents who willed some property in their names can decide to sell off some of the property just to generate enough money to fund their business.

Read: How to Access Bank Account of Deceased Person In Nigeria even if You are the Next of Kin or Not



#2. Nigerian commercial banks

Individuals who wish to either start up or fund their businesses often go to banks to access their facilities especially when family members and friends cannot support this business.

Nigerian banks often give loans to individuals for many reasons but not without collaterals. Collaterals are property or something given to the bank in place of money borrowed so that the bank can sell off that thing and recover their money.

Also, bank loans often attract interest. Bank loans come in many forms – long term, midterm and long term loans. What determines how loans can be classified is the length or period of time in which borrow is allowed before he or she repays the money and the amount of money involved.

Banks are major sources of business funds. Short term lasts about 3 years while medium term lasts between 5 to 10 years, but this condition varies from bank to bank. Long term loans are based on your credit history and current income, and can last for a period of 30 years.

Even though most commercial banks in Nigeria do not give loans without interests, Islamic Banks have changed that common practice. This is because they operate on the principle of Sharia Law which prohibits interests, riba or Usury.

To access bank loans you must have a current account with them. And First Bank can lend up N500,000 if the applicant has operated a current account for over 6months and it is done on corporate basis.

Corporate basis in that the applicant should work in a company with good reputation and they will sign an undertaking with First Bank to be deducting the money from your salary.

Alternatively, you can visit First Bank Microfinance Bank for smaller money. All applicants must operate current accounts with proven track record of credit-worthiness.

See the: Top 20 Banks In Nigeria you Can Bank with Without Problems



#3. YouWin Program

This is an empowerment Program put in place by Federal Government of Nigeria. It empowers Nigerians mostly the youths.

It is a collaboration of the ministry of Communication Technology, ministry of finance, ministry of youth’s development and ministry of women affairs and social development – and supported by department for International Development.

One of the cardinal objectives of Youwin is to generate over 80,000 jobs in 3 years and provide a onetime equity grant for 1,200 selected aspiring entrepreneurs to start or expand their business concepts and mitigate start up risks. It is targeted to people between 18 to 40 years.

YouWin is one of the sources of business funds in Nigeria.

Requirements for YouWin


  • You must have good business plan
  • You must Nigerian citizen between 18 and 40
  • You must have valid ID card (International passport, driver’s license and national ID card and voter’s card).
  • You must have a post-secondary qualification
  • You must prepare an innovative idea

Step2: Go on https://apply.youwin.org.ng. After applying you will receive a confirmatory text.

Step3: Complete New Business Application. Once you registration you will get an alert on your email. When you have successfully registered you need to log in and click the New Business Application button. It is only available one in a while.

YouWin has given thousands of Nigerian youths opportunity to source business funds and help themselves grow. Remember YouWin gives youths grants and not loans.



#4. Nonprofits / Angel Investors

Some Non-governmental organizations or nonprofits are established for the sole purpose of helping people have access to certain grants or loans.

NGOs are often owned by High Networth Individuals, so these philanthropists dole out certain amount of money from time to time to help people. To achieve this, you can write to Emeka Offor Foundation on info@sireofforfoundation.org.

In your letter, explain your business ideas and the need for them to sponsor your business. The challenge with nonprofits is that there are no guarantees one will get such funds.

Better still; write a proposal to them seeking to award you a contract for a project in the Foundation. It must not be Emeka Offor Foundation; it can be any nonprofit or philanthropic organization in your area.

Soliciting for funds from nonprofits is one of the sources of business funds because they often sponsor individuals.



Small and Medium Enterprises Development Agency of Nigeria is an agency was set up by Nigerian government to support individuals who have great business ideas but may not have enough resources to execute them. SMEDAN is one of the sources of business funds in Nigeria.

They are located in all 6 geopolitical zones in Nigeria and the FCT. If you have a good business idea, just forward an application to SMEDAN on info@smedan.gov.org and await their response.


#6. Personal finance

One of the ways individuals can get loans is by funding it themselves. People who manage to operate a local account (mostly fixed deposit) can empty it just to fund their business.

You can also sell your shares to generate money to fund your business. It is often said that, “If you save money, money will save you.”

This is the most common and the best of them all because you don’t need to beg anyone for support. Traditionally, this is regarded as the best but it doesn’t mean other methods shouldn’t apply when you don’t have enough to start or support your business.

So, this method is one of the sources of business funds in Nigeria.

Read Now: How to Open Bank Account in Nigeria Fast: Savings, Currents, Corporate and Fixed Deposit Accounts


#7. Local co-operative societies

In Nigeria, people often join co-operative societies and borrow so as to generate business funds. They do money sharing in turns, in that a huge percentage of their savings are given to members to start business with it.

To achieve this, join a local co-operative in your area and understand how they operate. When it gets to your turn, they will give you huge share of their savings and with the money one can use it to fund his or her business.

Local co-operatives have been known over the years as one of the sources of business funds in Nigeria.


#8. Partnership

When we hear names like PZ Cussons (Paterson and Zochonis) is a good example of how partnership can transform businesses. Partnership means two individuals pooling their resources and using it to fund their business ideas which may not be funded by one person alone because of huge financial implication of such businesses.

To form a partnership, the two parties must trust each other and each party’s contributions must be clearly defined.

Dear reader, if you wish to get into partnership to fund your business, you must sign all necessary agreements with your partner. Verbal or oral agreement is not the best for partnership.


#9. Bank of Industry

Bank of industry gives loans to small, medium and large industries, excluding cottage industries.

They also borrow to credit worthy promoters who will be required to prove their commitment to the project.

Part of their objectives is to lend to clients with demonstrable ability to meet loan repayment. To access BOI loans, do the following:

Write an application letter requesting for the amount you will like to access

Complete Bank of Industry questionnaire. Download their forms at boinigeria.com/downloadscentre

Submission of form and questionnaire

Note that there are no limits to the amount BOI can lend to borrowers and a loan of about 75million can be approved in 2 weeks if all necessary requirements are met.

Also, note that you can apply more than once they meet all necessary requirements. For more information on BOI loans, please log on to www.boinigeria.com. Bank of industry is one of the sources of business funds in Nigeria.


#10. Bank of Agriculture

Individuals who do not have money to go into agro-allied businesses may borrow from bank of Agriculture. They provide credit to segment of the Nigerian society who has little access to the services of the conventional banks.

Bank of Industry is owned by Central Bank of Nigeria and Federal Ministry of Finance and supervised by Ministry of Agriculture.

It’s obviously owned by Federal Government of Nigeria. Bank of Agriculture operates as conventional banks and they give loans to farmers who meet certain conditions.



In conclusion, do not procrastinate any further as time awaits no one. Go out there and explore any or all these sources of business funds and believe that your efforts shall not be in vain.

Remember, you shouldn’t be shy to seek help because those institutions and programs were established because government saw the need to eradicate joblessness in Nigeria.

Also, if you are shy to take a step to get yourself out of financial mess you may remain like that for so long. So go take the right step today. Good luck with that!

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