Learn how to generate seed capital for your lucrative business in nigeria. Nigeria is a very large West African country with a population of 181 million people, which makes it the seventh most populous country in the world.

The nation is situated in a politically volatile region, with constant conflict (among other countries and within Nigeria itself) causing instability and unrest.

These factors create an environment that can be challenging for international businesses but also offer an opportunity for growth - if you carefully plan your approach.

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Sourcing for funds for your lucrative business in Nigeria can be a challenge. In this guide, we will provide you with some of the best ways to source for funds in Nigeria.

Funds are essential to get any business up and running. When starting a business, one is often faced with the challenge of finding the right source of funding.

There are many options to find funds, but it is important to choose the right one that meets the needs of your company. The type of funding depends on how much money you need and where it will go towards.

Funding your lucrative business in nigeria can be difficult, but however not impossible.

Funding a new business in Nigeria is often a tall task. Nigeria is experiencing an economic downturn right now, and it can be hard to convince people to invest in your business when they’re not sure they’ll even have enough money to support their own families.

Your business should have an obvious and convincing prospect that it will succeed.  This will give you the confidence to solicit for financial aid either from an individual or an institution.  

You should be able to convince your target sponsor that your products or services are worthwhile of supporting.

The best way to get all the funds you need for your start-up is to convince people with some extra cash lying around that investing in your business will pay off for them over time.

Before you start, there are two important types of financial help for business you need to understand and decide on which among is best suited for your business.

They are:

1. Debt and
2. Equities

Debt

The best way to get all the funds you need for your start-up is to convince people with some extra cash lying around that investing in your business will pay off for them over time.

This is when you borrow money from a financial institution; the money is to be paid back with interest at an agreed date.

The most popular form of debt funding is bank loans.

The following are some veritable factors to consider before taking a debt:

• Experience with lending institutions
• Strong credit history and cash flow
• Collateral (assets like personal property or real estate)

EQUITY

This is when an investor gives you money in exchange for a share in your company. Companies that have no assets or collateral can use equity financing as a way to get funds.

This will be particularly important if you're looking for large amounts of capital; it's much easier and more feasible to get funding from many people than from one person or institution.

And equity investors are usually more inclined to support high-risk companies, which is good news for startups like yours

Below are some basic facts about Equity:

• Investors buy shares in your company in exchange for cash that can be used however you like.
• They also use their own experience in the industry to help improve your company's performance.
• The downside is that they may want some control in your company and will expect to receive a return on their investment.

How To Source Funds For Your Lucrative Business In Nigeria

Whether you're a veteran entrepreneur or this is your first foray into business ownership, though, you need funding to get things off the ground - and to keep them going once they're up and running. It's hard to do that in Nigeria. Here's how you can source funds for your lucrative business.

The first thing to consider is what kind of funding makes sense for your business and its needs. If your plan is to fund large research projects or take out loans for equipment or other assets, you'll likely need to look into traditional funding sources like banks or investors, but if all you really need is cash flow for payroll and day-to-day expenses, that can be easier to secure from smaller lenders and other sources.

Once you have a plan for what kind of funding you need, though, it gets harder: banks are still slow in making loans, there are few private equity investors in Nigeria relative to other countries, and even venture capital is hard because most VCs don't understand the local market well enough to take a risk on an investment.

Below are some ways to get funds for your lucrative business in nigeria:

Take a Loan From a Rich Friend or Family Member

This is the easiest way to borrow money for your lucrative business in nigeria with low interest rates and no required credit history or collateral.

However, it does come with the risk of losing a relationship if things dont go as planned. Many people have lost relationships due to failed businesses and unpaid loans.

Bank Loans

The Central Bank of Nigeria (CBN) provides loans at an average interest rate of 14%.

Take out a loan from a bank or credit union using personal property as collateral. Loans are often viewed as the "safest" option for obtaining funding for a lucrative business in nigeria, because you are responsible for repaying the loan only if your business becomes profitable; however, there can be large fees involved with taking out a loan or using personal property as collateral.

Look Out For An Investor or Grants

Another option is to seek out an investor or grant. This option requires more work and can be very competitive, but most investors will expect to be repaid at some point in the future (usually with interest). In contrast, grants do not need to be repaid, but they can be hard to find.

And lastly, sell your assets such as cars, jewelry, property, etc. This is also a good way of funding your blucrative business in nigeria with no interest rate or collateral needed.

However, it does require a lot of patience and sacrifice on your part because you will not have access to these assets until you are able to buy them back when the business has become profitable.