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Top 5 Ways Students Raise Capital For Business In Nigeria




Raise capital for business

Top 5 Ways Students Raise Capital For Business In Nigeria

As a student in Nigeria, there are many ways for you to raise capital for business establishment. However, not all these ways are good and in your best interest, especially when you are still a student. In today’s Nigeria, where the unemployment rate keeps rising, the best you can do as a university student is to start a business.

Also Read: How to save money as a student in Nigeria

It is not always a stroll in the park to start a business. You need to raise funds to get capital to start any business establishment in Nigeria. This post lists 5 simple ways for students in Nigeria to raise capital for business ideas. Never give up on your business or startup dream; you might be the next big entrepreneur to come out of Nigeria. Now, let’s explore the 5 ways Nigerian students can raise funds for business startups.

Raise capital for business

5 Ways Nigerian Students Can Raise Capital For Business

  1. Save money (Sumotrust university savings challenge)

This is always the easiest way to fund your business in Nigeria as a student. Most students wait for people, the government, or a good samaritan to come to their rescue. This group of students forgets that Rome wasn’t built in a day. As a student, you can start by saving up from the little money you get and then plan with it. There are many ways to save money to fund your business as a Nigerian student.

I recently came across a university savings challenge by sumotrust. Sumotrust is a digital saving and investment platform duly registered with the relevant authorities in Nigeria. Sumotrust had created an avenue where university students are encouraged to save up to N300,000 from January to December 10, 2020. Students who participate in this savings challenge will be paid 10% interest on their savings. It gets more interesting if you are able to save up to N300,000 on or before December 10; you stand a chance to win an extra N100,000 from Sumotrust.

For more information about Sumotrust university savings challenge in Nigeria, click here.

  1. Family 

Aside from saving your money with sumotrust and getting paid interest to start your business, your family can also help you raise funds for your business. You can let your family know about your business idea and solicit their financial support. To make it more enticing to them, you can agree to pay them commission as the business grows. The family is always a great support when we seek out a great course for ourselves.

  1. Nigerian Bank of Industry (BOI)

The Nigerian Bank of Industry offers small, medium, and large enterprises minus cottage industries with funds for starting their business. As a Nigerian student, you can explore this option to get funds for your business. However, you will be required to pay at least 20% of your business cost. Your management capability, financial situation, character, and reputation must be incontrovertible. To access funds from the Bank of Industry, you must have no record of unpaid loans to financial institutions and other banks.

Here are three easy steps to obtain funds from the Bank of Industry:

  • Write a formal application letter
  • Complete the BOI’s questionnaire
  • Submit the forms and questionnaires

If you believe you meet the requirements for accessing a credit facility from BOI, visit

  1. Angel investors and grants

As a student in Nigeria, you can raise capital for business through grants and angel investors. Grants are non-repayable funds dispensed by grant givers like government, associations, or trust. Angel investors are wealthy individuals who offer capital for businesses in exchange for convertible debt or ownership shares.

All you have to do is convince these grant givers or angel investors that your business is worth their money.

  1. You can get a job

Now you have to assume that nobody is willing to give you the money that you seek to start your business. The last resort on how to raise capital for business is getting a job that sustains your financial needs. This will go a long way to help you save money too. Getting a job offers you both experience and money. Although it is not easy to work as a student in Nigeria, it is worth the stress.


To raise capital for business, especially as a student, is not an easy task. Therefore, when you eventually get the funds for a business establishment, you can’t afford to make a costly mistake. You have to do all you can to make your business successful and not disappoint those that put their trust.




Visionary, and Passionate entrepreneur who believes that greatness lies not in what you see, rather, it depends majorly on how you see. I'm that diligent and determined guy that sees things very differently. Let's make a difference people.

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When to Go For Funding In Your Business and Why




In this article, I discuss with you the right time to seek funds for your business and why you should seek funds at that time. But before that, let’s take a quick recap on what business funding is – its advantages, and challenges.

What is a Business Fund?

A business fund is money an entrepreneur raises or which is provided to an entrepreneur by the government, an organization, friends, or family to start or grow his business. Business funding is the act of providing funds to support a business.

Advantages of Funding Your Business.

The advantages of funding your business are countless but I have a few to share with you today. First, funding your business will increase your capital. Business funding gives you chance to advertise your brand the more and make your products more unique and sophisticated. It helps to increase your profits margin. With business funds, you become more dominant in the market space.

The Challenges In Acquiring Business Funds.

Like is often said, whatever has an advantage does not come easy. Most of the time, some challenges go with it but your capacity to surmount these challenges make you the hero. There are many challenges you might face in trying to get funding for your business For instance, if you self-fund your business and the business fails, you will be left with nothing as you have invested virtually all your money into the business.

Another challenge is that if you receive the fund from your family members or friends, it might affect your relationship with them as some of them might brag or show off to others about the help you got from them, which you may not like. On the other hand, if you receive the fund from a bank or any credit institution and you failed to pay it, the bank will not end it well with you.

By now I think you have a basic knowledge of what business funding is – its advantages and the challenges that come with it. So let’s start our main discussion!

Funding is very essential to a business. But when is the right time to go for funding in your business and why should you fund your business at such time? Find the answers to these now in this detailed article.

Funding is very essential to a business. But when is the right time to go for funding in your business and why should you fund your business at such time?

When is the Right Time to Fund Your Business and Why Should You Fund Your Business at Such Time?

Funding your business at the right time will make it boost while funding it at the wrong time will cause your failure. Before telling you the right time to fund your business, here are a few tips to help you decide if it’s the right time to fund your business or not.

  • At what stage is your business right now?
  • What type of fund are you trying to get?
  • What are the available means of getting funds?
  • Are you going for angel funding or Venture Capital (VC) funding?
  • What is your conscience telling you?

If you ask yourself these questions and you feel that you are fit to fund your business, here are the best times to do so and why you should do so:

(1) When Starting Your Business.

After settling on what business you want to venture into, getting some funds to kick-start it won’t be a bad idea. Although most entrepreneurs self-fund themselves at this stage, you can still seek funds from family and friends to support it.

Why you should fund your business at this stage?

Funding your business at this stage will help you to make a good startup at the foundational stage of the business. With self-funding capital, you will start a well-established business and even if the customers do not show up as you expected at the initial stage of the business, you and your business will not go under pressure for fear of lack of money to pay back to creditors if you loaned or borrowed the startup capital.

(2) When Your Stock is Low.

Once you notice that your shop is getting empty and you don’t have money to buy products and restock, you should seek funds from family, friends, or the banks.

Why you should seek a loan at this time?

Well, you simply don’t have enough savings to take care of this, that’s why! If you had, you wouldn’t reach out for help. So, you should seek a loan at this time because your business is on the verge of failing! Yeah, since your stocks are down and you don’t have enough capital to buy new ones, your shop will be empty, and hey! Customers don’t like empty shops; they want to see your shop full of products.

(3) When there’s Competition in the Market.

This is a highly crucial time to fund your business! When everyone is perfecting their brands, making their business unique, and doing a trendy advert, you can’t stand there looking at them. You too must join the moving train and beat the competition to its game! Therefore, get some funds and boost your business. It’s very necessary to do so at this point.

Why You Should Fund Your Business At This Time?

Well, if you fail to fund your business at this time, you’ll be out of fashion and I guess you know what this means for your business. You know, your competitors are doing all that they can to make sales. Join them too!

Do adverts from Pay Per Click (PPC) Ads, TV commercials, banners, posters to social media advertisements. Do promos if possible and don’t forget to improve the quality of your products. In short, do everything that will make you to stand out from the crowd! To do this, you need money!

(4) When You Want To Expand.

If you have been thinking of how to expand your business and reach more clients, then funding it for expansion is what you should consider doing. For example, Mr. A sells men’s wears with a single shop in Port Harcourt. As time goes his business grows and he wants to open another branch in Lagos, he will surely need some money to do this. He’ll need money to rent or buy a shop, buy products, hire an apprentice, and gets a manager; you know he can’t be in two places at the same time. If he calculates it, he might see that opening that shop in Lagos can affect the one in Port Harcourt. Therefore, to prevent failures, Mr. A can go for a loan if his savings won’t meet his business expansion needs.

Why you should fund your business at that time?

Failure to expand your business at the right time might reduce your motivation. Another thing is that People like buying from big businesses; if they see that you have different branches in different places, they see you as a big brand and tend to patronize you over others. In fact, they can refer others to you because they trust your products and services.

(5) When The Market Is Not Favorable.

This is happening at this time, after the COVID-19 lockdown, the market has been unfavorable to many businesses across the country and the world at large. Many people used their business capital to cater to themselves during the lockdown and the inflation rate is high now.

As such, many people have/are thinking of abandoning their businesses but this is not the right option! The right option is to seek funds or liquidate your assets. To liquidate your asset means to sell off physical assets and convert them to money (liquid).

Why you should seek a loan at this time?

As a business owner, if you think you are not doing well, you should think of how situations will be if you abandon your business. At a time when the market is favorable, what you should do is to seek more funds, improve your business, and be patient. Remember, the patient dog eats the fattest bone.



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Top 10 Crowdfunding Startups In Nigeria




Crowdfunding Startups in Nigeria

Sometimes, you need extra cash probably for an emergency or a business and you have tried all possible alternatives, no way out. Now, you do not know where else to go to get the urgent cash that you need. Now, there is one option left – Crowdfunding, using Crowdfunding websites.

What is Crowdfunding? What are Crowdfunding Websites/Startups and How Do They Work?

Simply put, Crowdfunding is an arrangement whereby the members of the society or community donate money towards the furtherance of a cause. Crowdfunding sites on the other hand are sites where people generate money for all kinds of purposes through donations.

It is not taking a loan. Rather, it is money given freely by donors and will not be paid back. This could be to fund anything from a business idea, a medical emergency, to tuition fees.

Crowdfunding Startups in Nigeria

GoFundMe, one of the top Crowdfunding Startups in Nigeria

Why should You Use Crowdfunding to Seek Funds in Nigeria?

If you need money for a project or to fund a great idea, Crowdfunding might be your last resort when you have no other means of raising money. In 2015, a whopping amount of 12.3 Trillion Naira was generated worldwide from Crowdfunding alone.

Unbelievable right?

Crowdfunding is not playing a “fast one” on people in case you are beginning to consider it as a preferred way to get rich lazy. Rather, it is an arrangement to support a genuine, legitimate cause. As far as your cause is genuine and it is legal, you could get funds from the society to finance your cause.

For example, the owner of Sahara reporters employed the use of Crowdfunding sites to fund his presidential campaign. He was able to get millions of Naira from donors online just by voicing his cause.

Crowdfunding sites can give that extra boost to your business, career, or academics. It is a great help when all other means of getting money fails. That you seek help through Crowdfunding does not make you a beggar in any way.

Although they are lots of Crowdfunding websites in Nigeria, I will only be giving you the best 10 websites that I think can help you today.

These Crowdfunding sites allow Nigerians to get help.

The list below shows the best Crowdfunding websites in Nigeria and how you can get money through them easily.

10 Best Crowdfunding Websites in Nigeria

(1) Naijafund (

From the name, you can tell that Naijafund is an indigenous Crowdfunding website tailored to meet the needs of the Nigerian community. Naijafund is a very good alternative to some foreign Crowdfunding sites available on the internet.

The website is also focused on supporting both startups and entrepreneurs alike. However, if you are an individual looking for funds on the platform, you can still get money to power your idea.

With this site, you can share your ideas with your friends and followers on social media and invite them to sponsor your idea(s).

(2) Indiegogo (

Another great Crowdfunding website you can check out today is Indiegogo because it is a collection of people who love innovation. This website is available in over 100 countries of the world and has assisted millions of innovators.

Anyone who creates content for any industry at all whether it relates to music, health, or travel, can be sure to get funds here to sponsor his/her ideas.

(3) MicroVenture (

If you are looking for donations for any of your projects, is a great place to check out. It is popular for helping popular brands like Uber and Spotify get their ideas up and running.

This is no wonder why thousands of businesses use them to solicit funds for their businesses. MicroVenture users are categorized into two: (1) investors and (2) creators. While creators are those who post projects and solicit funds, investors are those who go through various projects posted and donate to one.

(4) CrowdFunder (

Crowdfunder is a global Crowdfunding company with a presence in Nigeria. It is popular among entrepreneurs looking to grow or expand their start-up businesses. Start-up companies, as well as individuals can log on to and share their amazing ideas with the world.

The donors on this Crowdfunding website have been known to favor startups more. So, it is more advisable for startups to post here than for individuals to do so as the posts of individuals might not even show up on a visitor’s feed.

(5) GoFundMe (

Perhaps one of the most popular Crowdfunding websites in Nigeria, GoFundMe has helped thousands of people to acquire funding for different types of projects. It has thousands of active users who utilize its toll to raise their required funds.

The platform even has a list of testimonials you can view to attest to this. If you are worried about charges, signing up and using GoFundMe is completely free of charge.

The site is easy to use especially for payments as it provides numerous payment methods which donors, including NGOs, can use to sponsor their desired projects.

(6) Circle Up ( is a site which assists people and companies involved in producing goods or rendering services to consumers. It is not a Nigerian company but still caters to the needs of Nigerians.

Any person or company looking to scale up their ideas can always come here to get funding. Freelancers are not left out as they could also use Circle Up to fund their ideas.

(7) KickStarter (

Kickstarter is a global platform that is not just limited to Nigerians but is available worldwide.

Many people have testified that this platform helped them get money for projects they were working on. Different kinds of ideas flood the site daily from different areas such as science, tech, and arts.

Any visitor to Kickstarter website is immediately shown the different ideas available and could pick the one that appeals to him/her.

Signing up for Kickstarter is easy as it only requires your basic information. However, you have to explain your idea in full, so that potential donors can be convinced to help you.

(8) Fund an Enterprise (

Fund an enterprise is a good Crowdfunding website that does exactly what its name implies. It is a Nigerian company that has grown so fast and now has a presence in many countries in Africa like neighboring Ghana and far away South Africa.

The company helps both big and small businesses to get capital to start and expand their enterprises. Though lacking in some areas, at least Fund an enterprise allow users to give and receive donations for their required projects with ease.

(9) CrowdCube  (

One of the leading Crowdfunding platforms in Nigeria is CrowdCube. It is mainly focused on providing entrepreneurs and startups with the necessary capital they need for their businesses.

The issue of the unavailability of capital for startups was one of the reasons why the website was established, as the founders themselves found difficulty in starting their businesses.

Crowdcube makes sourcing for funds simpler by providing an app for the users on android and iOS platforms.

(10) Patreon (

With Patreon, beautiful projects by content creators can easily receive money to be implemented. Patreon’s approach is slightly different when compared to other Crowdfunding websites.

Here, fans of a particular creator can easily be invited to like and support a particular project after both the creator and fans sign up on the platform.  As a content creator, you can find artists, vloggers, sportsmen and sportswomen and other celebrities on Patreon.



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Building Sustainable Businesses in Africa: Investment Funding Opportunities in Nigeria

Deborah Oyegue



investment funding opportunities in nigeria



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