GreyNews:Financial Aid Tips For your Business


Experts agree that accessing financial aid is amongst the top five challenges, a Nigerian Entrepreneur faces.

Having identified this gap, Greywheels Limited has compiled a list to enlighten you on accessible funds in Nigeria.

Bank of Industry (BOI) Funds
The Bank of Industry targets businesses that engage in manufacturing and processing activities covering Agro-processing, Solid Minerals, Information technology, Oil and Gas and the Creative Industry. They also provide single digit funds to entrepreneurs and have been hailed as one of the best managed Banks in the world.

The BOI’s market focus includes:

• Small, Medium and Large enterprises, excluding cottage industries.

• New or existing companies, seeking expansion, modernization or diversification.

• Credit worthy promoters who will be required to prove their commitment to the project by contributing at least 25% of the project cost excluding land.

• Borrowers whose management capability, financial situation (including availability of collateral and guarantee), character and reputation are incontrovertible.

• Clients with demonstrable ability to meet loan repayments.

• Borrowers with no record of unpaid loans to erstwhile development finance institutions and other banks.

• There are several available funds an Entrepreneur can access including the BOI/State Matching fund, The BOI/Dangote Matching fund and also a Matching fund available for the Automotive Industry.

• There is also the FGN SPECIAL INTERVENTION FUND FOR MSMEs (National Enterprise Development Programme) which is the Federal Government’s initiative to provide subsidized loans to MSMEs.

*Greywheels has a working relationship with the Bank of Industry and solicits advice on which of these loans is applicable to your business, how they can be secured, and how they can be profitably employed.

The Tony Elumelu Fund
The Tony Elumelu Foundation has set up a 100 million dollar fund, for 10,000 African Entrepreneurs. It is a Grant and is available to Entrepreneurs in the following sectors: Agriculture, Fashion and design, light manufacturing, ICT, Solid minerals, amongst others. They have recorded several awardees and the grant can be accessed over the next 7-8 years.

Lagos State Employment Trust Fund (LSETF)
The Lagos State Government has set aside 25 billion naira, to support SMEs. The Fund is divided into two categories; Micro and Small Businesses. Under the Micro category, businesses can access up to 500,000 naira loans with an interest rate of 5% over one year tenor. Small businesses however, can access up to 5 million naira over a tenor of three years.

GroFin, a business development financier, has committed over 500 million dollars, to funding Micro and Small and Medium business (MSMEs) across the country. The firm has five different types of funds: the Aspire Nigeria Fund, the Growth Africa Fund, the Small Growing Business Fund, the Aspire Small Business Fund and the Aspire Growth Fund.

There are several Commercial and Microfinance Banks in Nigeria, which support Small Businesses and growing Entrepreneurs. They provide serviceable loans and also provide financial advice when needed.
*Greywheels Limited has established viable partnerships with a good number of them and is in a vantage position to proffer credible business solutions and also advice on loan eligibility at the most minimal rates possible.

Social Intervention Fund
The Federal Government of Nigeria allocated a total of N6 billion under the Social Intervention Fund in the 2017 budget. The fund is available for Artisans and owners of Micro businesses. The artisans/business owners can access a maximum of 100,000 at a 3% rate over a one year tenor.

Want to disrupt an industry? Seen a Gap that you want to fill? Passionate about a social cause? Want to Expand your Business?

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