Ideas For Nigerians To Raise Capital 

Ideas For Nigerians To Raise Capital – Igwenazor Chinaemerem


No doubt it is quite tough for many people, most especially the young Nigerians to raise capital to fund their business ideas. There are streams of endless seminars on entrepreneurship unfortunately they are more of text book theories which many attendees have not transformed into cash equivalent. Among these seminar hosts are micro financing institutions yet they have not solved this challenge of raising capital.

Looking at the dynamics of the Nigerian society, the need for the youths to create their businesses with their funds is undeniable. For a smooth start, many are advised to focus on understanding and investing in Fast Moving Consumer Goods [FMCG].

Why FMCG? It is easier to get clients and due to its frequent demand, profit could be easily calculated and pocketed. There are thousands of items to think of that falls on this bracket, a look at an Aboki’s shop tells you what you can work on – drinks, water, egg, bread, toiletries, edibles-fufu/garri et al. opting for a mini fast food may not be a bad idea. However for you to carve out a solid client base from the seeming clogged marketplace, you need to the strategic and creative.

These days, going into business takes more than just opening a shop. You need not get a shop where you seat day in day out. You can operate from the home or from the boot of a car.

To raise the needed capital, you need to first of all sign up a long list of off takers i.e clients. With you being a link man between a major distributor/producer and the retail outlets, investors can believe your drive and dream. Let’s assume you got about 10 bulk buyers of a commodity like Ice blocks and they buy them on daily basis Monday to Saturday, each client buying 10 units of Ice blocks daily, you have a business of supplying 100 units daily.

Having gotten the item to sell and those picking them off you, you now draw up a fund raising bulletin and hit the road searching for would be investors. For the investors, be smart enough to offer them a percentage profit monthly. At least 10% monthly return has done the magic of unlocking doors for many we have worked with us in the recent past. With a detailed financial investment and reward bulletin, you are most likely to hit the needed capital in less than a month. The good thing is that you can get it from family and friends.

Using the Ice block as an example, you can ask for N500,000.00

and get it. This capital can be invested in the business and repaid with interest in a calendar year.

Investment : Ice block making and marketing business

Capital : N500,000.00

Monthly interest rate : 10%

Duration : 12 calendar months



Here are some assumptions –

  • You sell 100 units of the ice blocks daily
  • Your business days are Monday to Saturday weekly
  • You sell each unit for N100 only

Figures from the above tells us that for each day, a Cashflow of N10,000.00 [ten thousand naira] is applicable. In the 6 working days of the week, it will amount to N60,000.00 [sixty thousand naira]. In a month it will amount to N240,000.00


The above figures as accurate as they are, on a fair average and estimation, anyone investing in this area of business can have in a worst case scenario N150,000.00

monthly. And we can envisage that in some cases you may have events to supply heavily in some weekends. With an income of N150,000.00 monthly, N50,000.00 [fifty thousand naira] goes to your investors as monthly interest, same goes into your private pocket as salary while the remaining same amount goes into an account towards offsetting the loan by the end of the year.

It is evident that you can raise funds even when dealing on so called negligent items. I know many of us may not have met anyone who introduces himself or herself as Ice block maker. But the simple analysis made here shows clearly that it’s a quite lucrative investment.

Good luck.


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