Top Funding Opportunities for Northern Nigerian Startups

Despite the high concentration of startups in Lagos, Northern Nigeria is also a place filled with potential and entrepreneurial activity. Entrepreneurs here are building innovative solutions in sectors like renewable energy, fintech, agriculture, and edtech, amongst others. The common challenge that many of them face especially when compared with their Lagos counterparts is the access they have to different kinds of funding which they can use to start operations, scale, and thrive. Without a solid financial foundation, the best ideas and business models can struggle to become successful.

If you’re a startup founder in Northern Nigeria and you’re looking for funding opportunities to take advantage of, you’re in the right place. In this post, we’ll check out some investors who are open to funding your startup based in the North.

To access these funds, some criteria must be met. Some of these criteria could be specific to the institution that you intend to seek funds from while others are more general criteria that could be expected of any funding institution.

General criteria: To access most funds, you need to have a business or a comprehensive business plan that you’ve already done some verifiable work on. You need to be able to show that your business provides a solution to a ready market. Your investors need to know that you can make money from the business and provide a substantial return on investment.

Let’s take a look at the top funding opportunities for startups in northern Nigeria.

Types of Funding Available for Northern Nigerian Startups

• Grants: These are non-repayable funds provided by government agencies, NGOs, or international organizations used to help startups get on their feet. You probably understand why they’re every entrepreneur’s dream. With grants, you’re not indebted and you lose no equity.

• Angel Investors: If you’ve ever approached that rich uncle to invest in your business idea and never got a call back, angel investors are the next best thing. These are wealthy individuals who provide early-stage funding in exchange for equity.

• Venture Capital (VC) Funding: VC funding comes from investment firms that fund high-growth startups for a stake in the company.

• Government & Institutional Support: Support can come from funds from local, state, or federal programs.

• Startup Competitions & Accelerators: These are programs that offer funding, mentorship, and networking opportunities, providing a support system of resources required to take your startup from zero to growth.

Grants and Government-backed Funding Programs

This type of funding is attractive to many entrepreneurs because they don’t require repayment, unlike other funding sources.

Here are some grants Northern Nigerian startups can apply for:

• Tony Elumelu Foundation (TEF) Entrepreneurship Program

Provides $5,000 in seed funding to African entrepreneurs.

Offers mentorship, training, and networking opportunities.

Open to startups in all sectors, including agribusiness, technology, and healthcare.

How to Apply: Click here and submit an application.

• Bank of Industry (BOI) SME Loan Scheme

Provides funding for small and medium enterprises (SMEs).

Focuses on manufacturing, agriculture, and technology.

Offers both grants and low-interest loans.

How to Apply: Click here for eligibility details and how to submit an application

• Development Bank of Nigeria (DBN) Loans

Offers affordable loans to small businesses.

Works with commercial banks and microfinance institutions to disburse funds.

Focuses on women-owned businesses and rural entrepreneurs.

How to Apply: Click here for loan application details.

• Central Bank of Nigeria (CBN) SME Funds

Provides funding through its Agriculture and Small and Medium Enterprise Investment Scheme (AGSMEIS).

Offers single-digit interest loans to eligible entrepreneurs.

Focuses on businesses in agriculture, ICT, and creative industries.

How to Apply: Available through approved banks and microfinance institutions. Click here for more information.

• Federal and State Government Grants

Be on the lookout for government grants that are launched with the primary aim of funding entrepreneurs in sectors relevant to Northern Nigeria like renewable energy and agriculture. You can also take advantage of state-sponsored initiatives that support local businesses.

Angel Investors and Angel Networks

While angel investors are wealthy individuals who fund startups, an angel network is a group of these individuals who pool their financial and professional resources together to provide funding for startups and entrepreneurs in exchange for equity. 

You can seek out individual angel investors, build relationships with them and find out if they’re interested in providing mentorship and even funding for your business venture. You can also look into angel investor networks that are interested in funding startups in Northern Nigeria.

Here are some angel networks that fund Nigerian startups:

• Lagos Angel Network (LAN)

• Rising Tide Africa

• Diaspora Angel Network

Venture Capital (VC) Firms and Impact Investment Funds

If your startup focuses on social and environmental impact, then you should explore impact investment funds that support startups which address challenges faced by underserved communities in Northern Nigeria.

Some impact investment funds in Nigeria are:

• Impact Investors Foundation (IIF)

• Africa Impact Investing Group (AIIG)

VC firms fund startups for a stake in the company. Here are some well-known venture capital firms that you can consider pitching to in Nigeria:

• GreenHouse Capital

• Microtraction

• Future Africa

Startup Competitions and Accelerators

Startup competitions and accelerator programs provide funding and mentorship. Here are some you can apply for:

• Seedstars World - A global competition for tech startups.

• Google for Startups Accelerator Africa - Supports early-stage tech startups.

• Orange Corners Nigeria - Supports young entrepreneurs with funding and training.

• Techstars - A startup accelerator and VC firm

Some innovation hubs all around Northern Nigeria offer incubation and acceleration programs that provide startups with mentorship, training, and access to funding. Make enquiries about available hubs in your locality to gain access to them.

Tips on How to Successfully Apply for Startup Funding

Here are some tips you should use when you’re applying for funding:

1. Develop a strong business plan

Ensure your business model is scalable and your business plan is solid. It should be well-written in a way that clearly shows your value proposition, target market, and financial projections to attract investors.

2. Prepare a solid pitch

Your pitch should be short, visually engaging, and should contain everything investors need to make a decision. Also, be ready to answer any questions they may have.

Learn more about how to pitch to investors here

3. Understand the eligibility criteria before applying

Different kinds of investors have requirements that must be met prior to applying. Carry out thorough research to know if you qualify.

4. Build a passionate team

Apart from investing in your startup, investors also invest in people. Ensure you have a skilled, experienced and passionate team ready to execute your business plan and meet your business goals.

5. Show traction and milestones

Show how much progress you have made so far with milestones to let investors know you have traction.

6. Network and seek mentorship

Build mutually beneficial relationships by attending events and networking with investors and other entrepreneurs.

7. Highlight the local regional impact

Don’t forget to show how relevant your startup is in Northern Nigeria and the challenges you’ll be addressing there.

8. Showcase your adaptability

Northern Nigeria has a peculiar business environment that may come with unique obstacles. Show that you are prepared with strategies to overcome them.

9. Be resilient

You need to be persistent when looking for funding as it can take a lot of time and effort. Keep pushing and don’t give up.

Conclusion

Finding funding for your startup can be challenging, but with the right understanding, knowledge and resilience, you can secure the funds you need to grow your business. 

Now that you know who to pitch to and what you need, which of these funding opportunities will you go for? Let us know in the comments.

Click here to learn how to build a successful startup in Northern Nigeria