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How to Raise Capital for Business in Nigeria (2024)

In this article, I’ll show you how to raise capital for business in Nigeria. To some people, raising capital for a business is quite challenging but having done it for many startups; I see it as a simple task one can do. And I’m going to show you exactly how to do that. Ever if you’ve try before and fail, after going through this post, you’ll definitely learn how you can raise capital to finance your new or existing business.

How to Raise Capital for Business in Nigeria
Raising Capital for a business

Starting a business in Nigeria is challenging. But if all resources are available, it can be exciting.

Raising capital for business is one of the hardest parts of starting a business in Nigeria. Whether it is a small, medium or large-scale enterprise. This is a threat and a great challenge to many entrepreneurs who want to start up a business. Many entrepreneurs has abandon a ‘supposed multi-millionaire business ideas because of this.

If you have a good business ideas you want to start but no capital start up; don’t worry, I’ve got you covered. Today, I’ll show you ways on how to raise capital for the business. There are so many great ways to raise capital for business in Nigeria. it ranges from ones that would require you curtail you expenses, to those that would require you build trust and reputation.

Reasons why you may find it Difficult to Raise Capital for Business

Some of the reasons why you find it difficult to raise capital for a business in Nigeria include:

Unprofitable business idea – Your business idea(s) must be such that it can attract investors. So, you must get a good business idea before sourcing funds for a business. You can select from our list of business ideas before embarking on fundraising for business.

 Bad business values and goals -Your dream business must have concrete core values and goals. This concrete values and goals must align with your business mission and vision statement.

Poor Business Plan – Business plan is a vital element of every successful business. It serves a blueprint which you must refer to at all time. If you don’t have a good business plan, you will find it difficult to get funds or loan from banks. You can look at how to write a winning business plan in that regard

Bad Reputation – You need to earn yourself good reputation and integrity. If you don’t have reputation and integrity; I bet you, your family members will not even listen to you when present your business plan to them talk for funds to finance your business.

Now that you’re aware of why you may find it difficult to raise capital for business, it’s time to see how to raise the capital…..

Ways to source fund for Business in Nigeria

How to Raise Capital for Business in Nigeria

Here are how you can raise capital for a business in Nigeria:

Personal savings

This is the best way to raise capital for a new business in Nigeria. Personal savings is one of the easiest ways to raise funds for business, especially for small and medium scale business enterprise. When you have a business idea and there is no capital for startup, cutting down your expenses to save for the business is a good strategy of raising capital at least the initial startup capital.

Use of piggy bank App is the best method for personal savings. You can commit to saving as little as ₦100 a day into your online Piggybank app or account and also earn accrue interest annually. So, knowing that you can save as low as ₦100 daily to your Piggy Bank account, you can decide on your own how much you will save daily. This is the best method to make a saving plan.  I use PiggyVest to save and invest. So, you can Sign up for Piggy bank here and get ₦1,000.00 to start your own savings journey.

Timing, and the amount of money you were able to save within a given month matters a lot. You can apply the 50/50 technique in your personal saving style. In this technique, you will not spend more than you save. You put 50% of every income you earn into savings.  For example, if you increase your saving by N40000, you know that you’ve earned the right to raise your lifestyle by that same amount (N40000). By so doing, you will be able to raise capital for your business within the shortest possible time

Most people wait to start saving when they have some extra money lying around -a comfortable surplus. But it doesn’t work like that. You start to save for your business at least 2 years of time you propose to start the business. But it is not necessary that you have to wait till 2 years before you begin the business.

Relatives and families

Your relatives and family member is the second best method to raise capital for new business. Apart from the money you saved through the Piggybank, another way of raising substantial money for your business is through family and relatives whom you have earned their trust.

It may difficult f to get money from your family and relative if they don’t believe in you. Of course, you have to trust yourself first, if you want people to trust you. You need to earn a high reputation from family and relatives and present your business idea as one that is achievable for you to get money from your relatives and family members.                                                                            

Friends and well-wishers

Outside your family members, the nearest persons that can help you raise startup capital for your business are your friends and well-wishers. Again, they need to trust and believe in your ability before you can get money out from them.

Present your business idea and a good design business plan, no matter how small the business is; they will be willing to support you financially. Begin from your closest friends. You can promise to give them something in return as the business starts paying off in spades.

However, it is important you don’t make promises you cannot fulfill. Ensure you fulfil your promises to maintain the good relationship with your friends.


Crowdfunding is a smart way to raise capital for business in Nigeria through the people. It involves raising fund from large number of people who each contributes a small amount of money for rewards or equity in your business.

Popular online crowdfunding platforms like Kickstarter, GoFundMe, and Indiegogo will help you start your crowdfunding journey and in reaching large number of people (both international and local). A time limit is set for this purpose after which it is close.

Grants from Philanthropists and organizations

Another good source of capital for starting up a business is the grant. Grants are non-repayable money or products disbursed by grant makers, often a government department, organization or trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual.

For you to receive a grant, some form of “Grant Writing” often referred to as either a proposal or an application may be required. The kind of grant I recommends is grant from non- profit organization or philanthropic organization.

You can outsource for grants to get your business started but remember, most organization that gives out grants look for right thinking and innovative people and organizations. They also set benchmarks to measure success and monitor your progress in the business.

Social exchange market promises to offer grants to its member (registered co-operatives under social exchange market).  This has been on for a long time but has not work.

Business Angel and Angel Investors

Angel Investor is a wealthy individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership shares. Business Angel can be anybody who is willing to invest in your business. All you need is to prepare a good business plan and present it them.

Business Angel should be able to see why he should invest in your business. You can get such people in your locality. Interestingly, it can be your Uncle in Abuja, your big sister, a director you know or even your own brother; look for them to help you raise capital for your business in exchange for ownership equity.


By joining cooperative and saving small amount every day, you can raise money for your business in Nigeria. Once you join any co-operative society, you are eligible to borrow money from your cooperative and you are eligible to receive funds on your turn. This is one good thing about co-operative society

Once, you receive your own turn of funds which can substantial enough to startup business, use it to start up the business. However, you must plan a way to pay at the due time as you might be charge some amount of interest it is overdue.


Partnership is another good way to raise capital for business in Nigeria. Raising capital for business through partnership works very well when you meet someone that has a similar business interest and core values like you. Two of you will pool funds together to start up the business together.

Partnership is not necessary a two persons business. In partnership, Profits are shared according to individual contribution or shares of the business. So, there is equity and justice. Most multi-national and multi-international companies we have today start as a partnership business.

Partnership business has many great advantages over the sole proprietorship business. I will not dive into that. That will be topic of another day.


Getting sponsorship from interested individual, organizations or companies who finances your business project in exchange to promote the organization or individual business is another means to raise capital for a business.

No organization, company or individual will agree to sponsor project without seeing how she will benefit from the project. So, before you begin approaching any organization or individual for sponsorship you must make sure that you have included the interest of the organization or individual sponsor.

If you’re looking to get sponsorship for your business startup, I have this article on how to get sponsorship in Nigeria for anything that will help you.

Bank of Industry (BOI)

Bank of Industry (BOI) provide small, medium and large enterprises, excluding cottage industries with capital for starting a business. New or existing companies, seeking expansion, modernization or diversification; creditworthy promoters are offer loan by bank of industry. They prove their commitment to the project by contributing at least 25% of the project cost excluding land, borrowers whose management capability, financial situation (including the availability of collateral and guarantee), character and reputation are incontrovertible.

You’ll demonstrate your ability to meet loan repayments by showing you have no record of unpaid loans to erstwhile development finance institutions and other banks.

You can obtain access to the Bank of Industry facilities and loan in 3 easy steps:
Step 1: Write a formal application letter
Step 2: Complete of BOI’s Questionnaire
Step 3: Submit Forms and Questionnaire.

So, if you think you’ve meet up with the bank of Industry requirement you can comfortably visit to download the appraisal form and complete their questionnaire for your business funds

Bank Loan

 I decided to add banks loan because I still believe that bank loan serves as a means of raising capital for business startup. The only problem with commercial banks in Nigeria is they demand a lot (collateral and security) and they often turn down the request of small scale and medium scale business enterprise.

Another problem raising money through the bank is that, their interest rate is very high and sometime difficult to determine. And in most cases, it takes bank thy kingdom to process a loan request.

But you can opt in for a microfinance bank’s loan whose interest rate is lower compare to commercial bank.

Published press articles

Actually, it is not the press article that you’ve published that will give you capital for your business but rather the attention of the investors that you’ve attracted through your press article. Many large scale business entrepreneurs have secured their seed funds via this means.

One good thing about raising capital through publishing press articles is that it can attract international investors, donors as well as local investors or donors. Many startups are capitalizing on this method to attract international investors who fund their businesses.

Get a Job that finances your business

There are so many jobs and task you can do online to make money in Nigeria to finance your business.  Some of job don’t necessary requires you having money before you can do. As you carried out these online jobs, keep part of the money to start up a business.

This is similar to personal savings but the only difference is that you have a mini or an online job you complete daily or weekly to earn money to finance your business

Government SME support

From time to time government roll out SME loan for business. Actually, this is not a good means to raise fund for a business yet it is still very important I mention it. This is because many small and medium scale enterprise has started greatly via this means. It is worth trying as your last resort to raise capital for your business.

Most SME Loan support are done by State government, so you need be current to know when your government releases such loan.


I have shown you how to raise capital for business in Nigeria. Remember the key points that you must get right before sourcing for capital for your business. Get those points right and you will be surprised that you will raise enough money than you actually need to start up the business.

Learn how to start a small profitable business in Nigeria


It is time to tell us how much you need for your business startup. Use the comments box below, only real names will be published, don’t add your contact details for security reasons. It is not accepted.

I wish you all the best as you raise capital to start your business in Nigeria


32 thoughts on “How to Raise Capital for Business in Nigeria (2024)”

  1. I am an online pupils’ tutor. This idea was brought up as a result of the lock down last year and I still continue. All I need now is to get some more awareness/publicity for people to know what I am doing. I also sell clothings. I will appreciate if anyone can assist me with #500,000 to finance my clothing business and to get some gadgets to upgrade my online teaching.

  2. Hi, I’m an Educationalist, I have a day school which I intend to make it more standard by making it a boarding school, please I need help in raising enough capital, I’ll be glad if someone can reach out and help

  3. Hello my name is yusuf asmau, i intend to start a goat and chicken and dog poultry and will need like 200 thousand, will be grateful if help me, thanks.

  4. I need 300,000 to start my dream business.. Unisex saloon alongside wholesale distribution of attachments and wigs

  5. I need a soft loan of about 800k to set up a small out patient clinic with mini diagnostic services in a locality where i feel it is needed. I intend to repay instalmentally over a maximum period of 15months.

  6. hello thank you for this opportunity. i will like to start a red oil business am an ophan and i don,t know how to get the money to start up, all i need is #50,000.

    1. I am an online pupils’tutor. This idea was brought up as a result of the lock down last year and I still continue. All I need now is to g get more referrals and publicity. I also have passion for clothing business but no capital to start. I will appreciate if I can get a help or loan of #500,000. God bless us all.

  7. Hi. Thank you for this opportunity. I will like to start up a travel agency but I would like to have a business doing first so I can gather up enough money from there. I have an idea to start an online clothing business because I’m pretty good with fashion and the estimated amount is N200,000. I have tried emailing celebrities but no response. I will be glad if this gets posted. Thank you.

  8. Big thank for your write up, it is highly appreciated. Sir , I am a part time pastor of a youth church and our mission is to raise train and develop Godly CEOs to do descent business. I will like to invite you to our church for a seminar on these write up. Kindly let me know if you will be able to come.

  9. am reservist at city of johannesburg as a baa started reserving since 2014 after competing my studies i wanna, let me say my dream is to open a company in the ems services in my location since we have slow and poor services in our community start business will need about 2-3 million for a very good start

  10. I am a 200L Law student of Delta State University. I did a short course in photography about 6months ago because of my passion for photography and videography. I know I still have a lot to learn in this field, but with the little knowledge I have in photography, I believe I would be able to do very fine on-campus, as there are just but a few competitors here in my school..
    I have lights and a computer already, so, I would be needing a camera, an additional lens, and a printer. These should cost about #60,000

  11. Its really an eye opener..n thnks 4 sharing.i 2 hv a mega billion naira/dollar buisness idea..need d funding but Wit God i shall hv Jesus name..amioo

  12. Wow. This is great. Thanks for the eye opening business start up plan Sir.

    I am in a importation business of goods. E.g electronic mobile bags shoes but all I import are just 2 or 4 item at a time with high profit. E.g, I make 15,000 of profit on Blackberry Z10. I need real capital. Pls teach me more. Thanks.

    1. For more on strategic business planning, our second round on how to raise capital for business and many more on business ideas; enter your email address on the subscription box above on the right side of this page to receive all our article right into your mail box.

  13. dear sir,

    thank you for the write up, it is highly appreciated. Sir , i will like to invite you to our church for a talk on these write up. Kindly let me know if you will be able to come.

    warm regards,

  14. I have written a business plan on starting a cosmetic selling store but my start up capital is low..I jus finish my degree programm..I wnt to know how best I source for funds to start up..thanks

    1. Hello Rita, you have done great by writing a business plan for your cosmetic selling store business. Since, you are just beginning this business newly; I suggest you start with you family members, relatives and friends.Present your business plans to them and the amount you required to start up the business. This should be your first target source of funds for starting the business.

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