BusinessDay

Funding for SMEs in Nigeria

In economies, like Nigeria, where SMEs contribute about 50% to the Gross Domestic Product (GDP) and account for over 80% of active employment in the country, it is such an important sector reducing unemployment and boosting the drive to reduce poverty in Nigeria, most especially as the government looks to Fastrack growth of the economy beyond oil.

Unlike most sectors with potential to face a decline, the SME sector is likely to continue to grow;
like other countries, the SME sector as a whole is very important to the economy of Nigeria.
However as important as the sector is to the economy, it faces lots of issues that results to business failure, top of which is lack of needed support in terms of funding, with other known business challenges such as poor infrastructure, inconsistent government policies, high foreign exchange cost, and most recently, the disruptions COVID-19 pandemic.

According to various business surveys, access to funding is seen as the livewire of any business and knowing how to raise capital can most times be the difference between business success and failure. While there are various forms of capital raising options for short-term or long-term purposes, equity as a source of capital for business involves exchanging a portion of the ownership of the business for financial investment in the business. Equity capital is usually a cheap form of funding and is an important source of capital on a long-term basis.

That said, a team of angel investors are seeking to invest and provide business funding of up to NGN5,000,000 for equity stakes in registered businesses in Nigeria, as well as provide management advisory to help them scale their business through a 6-stage process that involves submission of application, screening and documentation review, interview, selection, contracts and paperwork and finally funds disbursement.

If you are seeking for capital to start your new business or to scale an existing one, then you can apply here as the deadline for application is on the 15th of January 2022.

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