How to Get Free Funding Opportunities Available for Startups in Nigeria

There are numerous funding opportunities for startups in Nigeria, many of which are free and readily accessible if you know where to look and how to apply.

Starting a business in Nigeria can be an exhilarating yet challenging endeavor.

One of the most significant hurdles many entrepreneurs face is securing the necessary funding to realise their ideas.

This article will guide you through various sources of free funding opportunities for startups in Nigeria and provide tips on securing these opportunities for your startup.

Also read – Full List of Winners of Tony Elumelu Foundation (TEF) Entrepreneurship Award 2024

Sources of Free Funding Opportunities for Startups in Nigeria
Tips to Securing Funding opportunities for startups
FAQs
Conclusion
References
Recommendations

Sources of Free Funding Opportunities for Startups in Nigeria

Although numerous free funding opportunities for startups in Nigeria exist equity-based funding remains a prevalent choice.

Equity funding is characterized by raising capital by selling shares, as Investopedia defines.

However, for certain businesses, providing equity may not be feasible due to various factors such as the business’s nature, the founder’s preference, or the operation’s scope.

Fortunately, alternative financing methods are available that do not necessitate relinquishing ownership of your startup.

These kinds of funding include:

Tony Elumelu Foundation (TEF)
Lagos State Employment Trust Fund (LSETF)
Bill and Melinda Gates Foundation
Ford Foundation
Bank of Industry (BOI)
African Development Foundation
Shell Livewire
GroFinFUND
The Next Titans Show
Loftyinc Capital Management
The Government Enterprise and Empowerment Programme (GEEP)
Business Development Fund for Women
Youwin!
Dangote-Boi N5-Billion Fund for Small Businesses
African Women’s Development Fund
Banks

1. Tony Elumelu Foundation (TEF)

The Tony Elumelu Foundation is committed to empowering African entrepreneurs.

It offers a 12-week training program that encompasses mentorship and provides seed capital of $5,000 to each chosen startup.

Since its establishment in 2010, the Foundation has supported over 15,847 young African entrepreneurs from all 54 African countries.

The TEF focuses on businesses with scalable concepts or those operational for no more than five years.

Notable startups that have prospered from this initiative include CcHub, Chekkit, BudgIT, and Trove.

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Also read – Every Important MTN USSD Codes in South Africa

2. Lagos State Employment Trust Fund (LSETF)

The Lagos State Employment Trust Fund is a governmental body that offers financial support to startups in Lagos State.

The segment of the program, mainly aimed at startups is known as Lagos Innovates.

Lagos Innovates aims to assist the most promising founders and startups by providing access to four essential resources: superior workspaces and infrastructure, educational training, initial investment capital, and networking opportunities with peers.

Notable startups that have received support from Lagos Innovates include GetEquity, Onehealthng.com, DataLeum, and Scholar X.

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3. Bill and Melinda Gates Foundation

The Bill & Melinda Gates Foundation, driven by the principle that every life holds equal value, strives to enable all individuals to lead healthy, productive lives.

The foundation endorses education, global health, population, and community giving initiatives.

In June 2022, it launched the Pan-African “Investing in Innovation” program, which aims to provide grants and commercialization support to 60 health tech companies across two years.

The initial group of 30 startups was chosen in 2022, with the selection of the next 30 anticipated in 2023.

Notable startups that have received support from the Bill and Melinda Gates Foundation include CcHub, Helium Health, Chekkit, and BudgIT.

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4. Ford Foundation

The Ford Foundation is an American private foundation dedicated to advancing human welfare.

Its mission encompasses reducing poverty and injustice, bolstering democratic values, fostering international cooperation, and promoting human achievement globally.

The foundation in New York City champions social change by supporting leaders and organizations worldwide.

It focuses on nine key areas: civic engagement and government, creativity and free expression, disability inclusion, the future of work, international cooperation, gender, racial and ethnic justice, mission-related investments, technology and society, and natural resources and climate change.

Nigerian enterprises such as CcHub and BudgIT have received grants from the Ford Foundation.

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5. Bank of Industry (BOI)

The Bank of Industry, a government-owned development finance institution, offers financial support to Nigerian enterprises.

BOI provides various financing options, such as equity-free loans, tailored for startups and SMEs within Nigeria.

These loan facilities feature repayment periods ranging from one to five years.

Through the Youth Entrepreneurship Support (YES) program, BOI grants entrepreneurs aged 18 to 35 years access to loan investments of up to N5 million.

The program includes an 8-week online and 5-day in-person training for those who qualify for the funding.

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6. African Development Foundation

The U.S. African Development Foundation provide funding opportunities for startups in Nigeria by supplying seed capital for their ventures.

The foundation offers technical assistance to agricultural, energy, and youth-led enterprises.

Beyond providing seeds and funding, they also conduct training, monitor the progress and growth of businesses, assist through various project phases, and offer mentorship platforms for entrepreneurs.

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7. Shell Livewire

This social investment platform provides funding opportunities for startups in Nigeria, helping to turn their business aspirations into reality.

It aims to inspire more young individuals to view entrepreneurship as a viable career choice.

Shell Livewire does more than provide funding; it offers training, guidance, and support to its beneficiaries.

The platform monitors and mentors existing entrepreneurs and aspiring ones, aged 18 to 35.

The Shell Live Wire program is exclusively available to residents of the Niger Delta region.

Its mission includes deterring violence and militancy while motivating young people to establish their enterprises.

This youth enterprise development program is proudly supported and financed by the Shell Petroleum Development Company of Nigeria Limited (SPDC).

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8. GroFinFUND

This development finance institution supports and funds emerging businesses throughout Africa and the Middle East.

Established in 2015, the organization is active in nine African countries and backed by investors such as the Shell Foundation, KFW, Dutch Good Growth, Norfund, and Grofin.

The institution has allocated approximately $500 million to finance small and medium-sized enterprises (SMEs) across Nigeria.

Grofin operates via five platforms: Aspire Small Business Fund, Growth Africa Fund, Aspire Growth Fund, Small Growing Business Fund, and Aspire Nigeria Fund.

The Aspire Small Business Fund offers a minimum of $100,000 and a maximum of $1.5 million to support diverse businesses in Nigeria.

Similarly, the Aspire Growth Fund provides entrepreneurs $100,000 to $3 million to foster business growth, typically over six years.

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9. The Next Titans Show

This competition is designed to fund entrepreneurs.

It seeks out ambitious individuals with entrepreneurial intelligence and exceptional business ideas.

The event also assesses the participants’ commercial acumen and business savvy, selecting a winner from among them.

The grand prize includes N5,000,000 and a brand-new car to support the winner’s business venture.

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10. Loftyinc Capital Management

On the organization’s website, Idris Bello, a co-founder of the initiative, discussed their support for entrepreneurs.

“We are thrilled to unveil the new $25 million Afropreneurs Fund II, dedicated to early-stage enterprises in Africa that utilize technology to create social impact and solve major challenges.

The primary objective of the Afropreneur Funds is to utilize these investments to achieve social impact, contributing equally to social change and the bottom line—elevating millions from poverty, illiteracy, disease, and unemployment,” he stated.

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11. The Government Enterprise and Empowerment Programme (GEEP)

In the recently signed 2017 budget, the government allocated N112.2 billion for business empowerment.

This initiative is designed to offer interest-free funding opportunities for startups nationwide.

Beneficiaries will receive loans ranging from 10,000 to 100,000 naira, subject to a one-time 5% administrative fee.

Approximately 200,000 Nigerians benefited from the scheme in 2016.

The GEEP and four other social investment programs represent the federal government’s commitment to assisting Nigerians in financing their businesses.

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12. Business Development Fund for Women

BUDFOW is an initiative of the Federal Ministry of Women Affairs and Social Development (FMWASD), managed by the Bank of Industries.

The program aims to empower dynamic and ambitious women, fostering innovation among young women to thrive in the entrepreneurial landscape.

Since its launch, N165 million has been allocated. The interest and returns generated are reinvested to sustain the fund.

It supports startups and existing businesses looking to expand, provided they are registered.

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13. Youwin!

The Federal Government organizes and operates a business plan competition to stimulate entrepreneurial activity.

This initiative aims to support the expansion of small and medium-sized enterprises and to foster job creation, benefiting 1,200 individuals annually.

Startups can access these funding opportunities by applying through the organization’s website.

A panel reviews the submitted business plans and selects the winners based on the robustness of their proposals.

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14. Dangote-Boi N5-Billion Fund for Small Businesses

Dangote and the Bank of Industries partnership aims to establish enterprises and bolster startups in Nigeria.

A key objective is the creation of at least one million direct jobs.

Starting with an initial fund of N5 billion, there are plans to expand this to N20 billion, impacting at least 250,000 individuals each year.

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15. African Women’s Development Fund

This program is fundamentally aimed at empowering women and advancing equality across Africa.

It provides women with financial support and other essential resources.

Presently, their network encompasses 1,160 women’s organizations from 42 countries.

In addition to individual opportunities, they also offer special funding for startups in Nigeria.

This initiative trains, supports, and enhances women’s voices, fostering financial independence.

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Also read – FinTech in Africa: Top 10 Female Managers that are Changing the Narrative in Africa’s FinTech Industry

16. Banks

Banks offer initiatives to finance entrepreneurs.

Explore their websites to discover the various programs available for business owners.

Diamond Bank runs the BET (Building Entrepreneurs Today) program with the Enterprise Development Center of Lagos Business School.

BET awards five entrepreneurs annually with N3 million each. The selection process is comprehensive and typically begins in July each year.

Tips to Securing Funding opportunities for startups

Securing funding for startups in Nigeria requires more than just identifying the right opportunities.

Here are some tips to increase your chances of success:

1. Develop a Strong Business Plan

A well-thought-out business plan is crucial. It should clearly outline your business idea, market opportunity, revenue model, and growth strategy.

This will demonstrate to potential funders that you have a viable and well-planned business.

2. Build a Compelling Pitch

Your pitch should be concise, compelling, and tailored to the audience.

Highlight the problem your startup solves, your unique solution, and the impact it will have. Practice your pitch to ensure you can deliver it confidently.

3. Network Actively

Networking is essential for meeting potential investors, mentors, and partners.

Attend industry events, join startup communities, and leverage social media to connect with people who can support your startup.

Also read – Moniepoint Commemorates IWD with Call for Applications into 4th Edition of Women in Tech Programme

4. Leverage Mentorship

Mentorship can provide valuable guidance and support. Seek mentors who have experience in your industry and can help you navigate the challenges of starting and growing a business.

5. Stay Persistent

Securing funding can be a long and challenging process. Stay persistent, learn from rejections, and continuously improve your approach. Persistence and resilience are key traits of successful entrepreneurs.

FAQs

What government programs provide funding for startups in Nigeria?

Programs like YouWiN! Connect and the BOI Youth Entrepreneurship Support (YES) Program offer funding, training, and mentorship to Nigerian startups.

Are there international competitions that provide funding for Nigerian startups?

Yes, competitions like the Tony Elumelu Foundation (TEF) Entrepreneurship Programme and Seedstars World offer funding, training, and global exposure to Nigerian startups.

What local accelerators and incubators support Nigerian startups?

Accelerators like Co-Creation Hub (CcHub) and Lagos Innovates provide funding, mentorship, and resources to help Nigerian startups grow.

How can Nigerian startups access venture capital and angel investment?

Networks like Rising Tide Africa and GreenHouse Capital offer funding, mentorship, and strategic support to high-potential Nigerian startups.

What crowdfunding platforms can Nigerian startups use to raise funds?

Platforms like Kickstarter and GoFundMe allow Nigerian startups to pitch their ideas to the public and raise funds through small investments from many backers.

Conclusion

There are numerous funding opportunities for startups in Nigeria, ranging from government grants and international competitions to accelerators, venture capital, and crowdfunding.

By understanding the available options and strategically positioning your startup, you can access the necessary funds to launch and grow your business.

Remember to develop a strong business plan, build a compelling pitch, network actively, seek mentorship, and stay persistent in your efforts.

With the right approach, you can realise your startup dream and contribute to Nigeria’s vibrant entrepreneurial ecosystem.