One of the greatest obstacles startups face in Nigeria is finance. Many times, it is easy to get the planning, and other key aspects of the business right, however, when there’s no funding for execution, there’s pretty much no progress. Therefore, many of these businesses look to the available startup funding in Nigeria to grow. See some topbusiness ideas in Nigeria.
Also, the starting capital of a business, determines to an extent, the level at which it enters the market. In addition, it also plays a key role in how long a business can fund its operation without making a profit, as most businesses start that way. If you are a business owner looking for the best startup funding in Nigeria, here are some of the best picks for you:
Types of Startup funding in Nigeria
Crowdfunding:
Since its emergence, crowdfunding has become one of the most common ways through which startups can raise funds in Nigeria. Primarily, it entails you pitching a business idea on the platform which hosts a lot of investors. Essentially, this means that your business can get funded without ever meeting the investors. Therefore, they could make one-time investments out of the free will, or choose to receive equity over time.
Business loans:
Anything loan most times pertains to a bank and lending companies. Today, there are several loans which you can obtain from both commercial and microfinance banks. However, they mostly attract high interest rates, therefore your business must be sure to yield substantial profit or it might be an awful choice.
Venture capital funding and angel investors:
Although they differ, angel investors and venture capital funding share much of their mode of operation. Angel investors usually invest at the beginning of startups, with certain terms, while venture capital investors usually work with already established companies looking to expand. However, they both provide funds for startups in exchange for equity in the company. Also, their investment is guided by certain agreements made beforehand.
Accelerators and incubators:
Although this might sound like a relatively new term as a startup funding in Nigeria, they have been around for a while. Accelerators majorly focus on startups that are viable to a certain degree and ready to expand. However, incubators on the other hand tend to startups at the early stage. Also, these two work hand in hand, creating a program or kind of system to vet startups, and the ones that make it through receives seed funding at the end of the program. The accelerators and incubators program is usually run by investors who receive equity in exchange for investment.
Bootstrapping:
This primarily focuses on growing a startup through in-house funding. Therefore, all funds come primarily from the founder of the business as well as other revenues it generates. However, most times, this means that the company suffers in the absence of personal funds, therefore delaying growth and expansion. Also, the founders have absolute control and operation of the startup.
Conclusion
Although obtaining Startup funding in Nigeria could be difficult, you can put your business in the best position by having a solid plan. Most times, the proposal presentation is the stage at which an investor decides to go on or not.
The internet is a great place to look for a variety of international scholarships. Many of these international students’ scholarships allow you to apply immediately online, which means you may potentially apply for dozens of scholarships including but not limited to adopted children, fellowships, and grants as an international student in only a few hours. However, a larger application pool reduces your chances of receiving financial help, but to win, you must take part.
1. Scholarship for Emerging Global Leaders from American University (AU EGLS)
In general, the AU EGL scholarship covers all billable AU costs (full tuition, housing, and board) for one international student who will need a visa to study in the United States (ideally, an F-1 or J-1 student visa). Costs other than tuition and fees (such as required health insurance, books, plane tickets, and other expenses, which total about US$4,000 per year) will not be covered by the scholarship.
2. Masters Scholarships for African Students at Georgetown University
About the Scholarship: The Master of Science in Foreign Service (MSFS) is a two-year, full-time graduate degree program in international affairs. Among the topics covered by the courses are international relations, global commerce and finance, statistics and analytical tools, and historical perspectives on the world. Aside from that, students choose a specialization, such as International Relations and Security, International Development, or International Business, to further their education.
3. AAUW International Fellowship in 2022/2023. (Masters & Doctoral program in USA)
Regarding the Award: Women who are neither citizens nor permanent residents of the United States are eligible to apply for AAUW International Fellowships, which are granted for full-time study or research in the United States. Graduate and postgraduate study at recognized universities in the United States are encouraged.
Awards are worth a certain amount of money.
4. Scholarships award by Clark University
Undergraduate students can apply for Clark University Presidential Scholarships as part of the University’s ground-breaking Liberal Education and Effective Practice (LEEP) education model, which combines a rigorous liberal arts education with authentic engagement in the world and the workplace for undergraduate students.
If you are an overseas student applying to Clark University for your first year of undergraduate study, you may be eligible for one of the University’s merit-based scholarships.
How to Submit an Application
If you are interested in the Presidential Scholarship, you may indicate your interest by checking the appropriate box on the Common Application (available after Aug. 1).
You will then get full instructions on applying for the scholarship, including the subjects for the two short essays. Candidates who applied for Early Action, Early Decision, or Regular Decision must submit their essays by the first of February to be considered.
5. Obama Foundation’s Emerging Leaders Program to study at the University of Columbia.
The award has a monetary value of:
monthly stipend to help with living costs in the city of New York
A fully furnished studio apartment in the heart of Columbia University’s campus.
Tuition and expenses for up to four courses at Columbia University are covered by this offer.
Comprehensive medical, dental, and life insurance coverage for the length of the program.
Air transportation to and from the home country, as well as any program-related activities
Leadership development programs, coordinated by the Obama Foundation, that will assist scholars in gaining real-world skills, techniques, and experiences that will allow them to extend the impact of their work when they return to their home countries.
Americans have been debating the wisdom of free college for decades, and more than 20 states now offer some type of free college program. But it wasn't until 2021 that a nationwide free college program came close to becoming reality, re-energizing a longstanding debate over whether or not free college is a good idea.
And despite a setback for the free-college advocates, the idea is still in play. The Biden administration's proposal for free community college was scrapped from the American Families Plan in October as the spending bill was being negotiated with Congress.12
But close observers say that similar proposals promoting free community college have drawn solid bipartisan support in the past. "Community colleges are one of the relatively few areas where there's support from both Republicans and Democrats," said Tulane economics professor Douglas N. Harris, who has previously consulted with the Biden administration on free college, in an interview with The Balance.
To get a sense of the various arguments for and against free college, as well as the potential impacts on U.S. students and taxpayers, The Balance combed through studies investigating the design and implementation of publicly funded free tuition programs and spoke with several higher education policy experts. Here's what we learned about the current debate over free college in the U.S.—and more about how you can cut your college costs or even get free tuition through existing programs.
Key Takeaways
Research shows that free tuition programs encourage more students to attend college and increase graduation rates, which creates a better-educated workforce and higher-earning consumers who can help boost the economy.
Some programs are criticized for not paying students’ non-tuition expenses, for not benefiting students who need assistance most, or for steering students toward community college instead of four-year programs.
If you want to find out about free programs in your area, the University of Pennsylvania Graduate School of Education has a searchable database. You’ll find the link further down in this article.
Types of Publicly Funded College Tuition Programs
Before diving into the weeds of the free college debate, it's important to note that not all free college programs are alike. Most publicly funded tuition assistance programs are restricted to the first two years of study, typically at community colleges. Free college programs also vary widely in the ways they’re designed, funded, and structured:
Last-dollar tuition-free programs: These programs cover any remaining tuition after a student has used up other financial aid, such as Pell Grants. Most state-run free college programs fall into this category. However, these programs don’t typically help with room and board or other expenses.
First-dollar tuition-free programs: These programs pay for students' tuition upfront, although they’re much rarer than last-dollar programs. Any remaining financial aid that a student receives can then be applied to other expenses, such as books and fees. The California College Promise Grant is a first-dollar program because it waives enrollment fees for eligible students.3
Debt-free programs: These programs pay for all of a student's college expenses, including room and board, guaranteeing that they can graduate debt-free. But they’re also much less common, likely due to their expense.
Pros: Why College Should Be Free
Proponents often argue that publicly funded college tuition programs eventually pay for themselves, in part by giving students the tools they need to find better jobs and earn higher incomes than they would with a high school education. The anticipated economic impact, they suggest, should help ease concerns about the costs of public financing education. Here’s a closer look at the arguments for free college programs.
A More Educated Workforce Benefits the Economy
Morley Winograd, President of the Campaign for Free College Tuition, points to the economic and tax benefits that result from the higher wages of college grads. "For government, it means more revenue," said Winograd in an interview with The Balance—the more a person earns, the more they will likely pay in taxes. In addition, "the country's economy gets better because the more skilled the workforce this country has, the better [it’s] able to compete globally." Similarly, local economies benefit from a more highly educated, better-paid workforce because higher earners have more to spend. "That's how the economy grows," Winograd explained, “by increasing disposable income."
According to Harris, the return on a government’s investment in free college can be substantial. "The additional finding of our analysis was that these things seem to consistently pass a cost-benefit analysis," he said. "The benefits seem to be at least double the cost in the long run when we look at the increased college attainment and the earnings that go along with that, relative to the cost and the additional funding and resources that go into them."
Free College Programs Encourage More Students to Attend
Convincing students from underprivileged backgrounds to take a chance on college can be a challenge, particularly when students are worried about overextending themselves financially. But free college programs tend to have more success in persuading students to consider going, said Winograd, in part because they address students' fears that they can't afford higher education. "People who wouldn't otherwise think that they could go to college, or who think the reason they can't is because it's too expensive, [will] stop, pay attention, listen, decide it's an opportunity they want to take advantage of and enroll," he said.
According to Harris, students also appear to like the certainty and simplicity of the free college message. "They didn't want to have to worry that next year they were not going to have enough money to pay their tuition bill," he said. "They don't know what their finances are going to look like a few months down the road, let alone next year, and it takes a while to get a degree. So that matters."
Free college programs can also help send "a clear and tangible message" to students and their families that a college education is attainable for them, said Michelle Dimino, an Education Senior Policy Advisor with Third Way. This kind of messaging is especially important to first-generation and low-income students, she said.
Free College Increases Graduation Rates and Financial Security
Free tuition programs appear to improve students’ chances of completing college. For example, Harris noted that his research found a meaningful link between free college tuition and higher graduation rates. "What we found is that it did increase college graduation at the two-year college level, so more students graduated than otherwise would have."
Free college tuition programs also give people a better shot at living a richer, more comfortable life, say advocates. "It's almost an economic necessity to have some college education," noted Winograd. Similar to the way a high school diploma was viewed as crucial in the 20th century, employees are now learning that they need at least two years of college to compete in a global, information-driven economy. "Free community college is a way of making that happen quickly, effectively and essentially," he explained.
Cons: Why College Should Not Be Free
Free community college isn’t a universally popular idea. While many critics point to the potential costs of funding such programs, others identify issues with the effectiveness and fairness of current attempts to cover students’ college tuition. Here’s a closer look at the concerns about free college programs.
It Would Be Too Expensive
The idea of free community college has come under particular fire from critics who worry about the cost of social spending. Since community colleges aren't nearly as expensive as four-year colleges—often costing thousands of dollars a year—critics argue that individuals can often cover their costs using other forms of financial aid. But, they point out, community college costs would quickly add up when paid for in bulk through a free college program: Biden’s proposed free college plan would have cost $49.6 billion in its first year, according to an analysis from Georgetown University Center on Education and the Workforce.4 Some opponents argue that the funds could be put to better use in other ways, particularly by helping students complete their degrees.
Free College Isn't Really Free
One of the most consistent concerns that people have voiced about free college programs is that they don’t go far enough. Even if a program offers free tuition, students will need to find a way to pay for other college-related expenses, such as books, room and board, transportation, high-speed internet, and, potentially, child care. "Messaging is such a key part of this," said Dimino. Students "may apply or enroll in college, understanding it's going to be free, but then face other unexpected charges along the way."
It's important for policymakers to consider these factors when designing future free college programs. Otherwise, Dimino and other observers fear that students could potentially wind up worse off if they enroll and invest in attending college and then are forced to drop out due to financial pressures.
Free College Programs Don’t Help the Students Who Need Them Most
Critics point out that many free college programs are limited by a variety of quirks and restrictions, which can unintentionally shut out deserving students or reward wealthier ones. Most state-funded free college programs are last-dollar programs, which don’t kick in until students have applied financial aid to their tuition. That means these programs offer less support to low-income students who qualify for need-based aid—and more support for higher-income students who don’t.56
Community College May Not Be the Best Path for All Students
Some critics also worry that all students will be encouraged to attend community college when some would have been better off at a four-year institution. Four-year colleges tend to have more resources than community colleges and so can offer more support to high-need students.
In addition, some research has shown that students at community colleges are less likely to be academically successful than students at four-year colleges, said Dimino. "Statistically, the data show that there are poorer outcomes for students at community colleges […] such as lower graduation rates and sometimes low transfer rates from two- to four-year schools."
What the Free College Debate Means for Students
With Congress focused on other priorities, a nationwide free college program is unlikely to happen anytime soon. However, some states and municipalities offer free tuition programs, so students may be able to access some form of free college, depending on where they live. A good resource is the University of Pennsylvania Graduate School of Education’s searchable database of Promise Programs, which lists more than 120 free community college programs, though the majority are limited to California residents.
In the meantime, school leaders and policymakers may shift their focus to other access and equity interventions for low-income students. For example, higher education experts Eileen Strempel and Stephen Handel published a book in 2021 titled "Beyond Free College: Making Higher Education Work for 21st Century Students." The book argues in part that policymakers should focus more strongly on college completion, not just college access. "There hasn't been enough laser-focus on how we actually get people to complete their degrees," noted Strempel in an interview with The Balance.
Rather than just improving access for low-income college students, Strempel and Handel argue that decision-makers should instead look more closely at the social and economic issues that affect students, such as food and housing insecurity, child care, transportation, and personal technology. For example, "If you don't have a computer, you don't have access to your education anymore," said Strempel. "It's like today's pencil."
How To Cut Your College Costs Now
Saving money on college costs can be challenging, but you can take steps to reduce your cost of living. For example, if you're interested in a college but haven't yet enrolled, pay close attention to where it's located and how much residents typically pay for major expenses, such as housing, utilities, and food. If the college is located in a high-cost area, it could be tough to justify the living expenses you'll incur. Similarly, if you plan to commute, take the time to check gas or public transportation prices and calculate how much you'll likely have to spend per month to go to and from campus several times a week.
Now that more colleges offer classes online, it may also be worth looking at lower-cost programs in areas that are farther from where you live, particularly if they allow you to graduate without setting foot on campus. Also check out state and federal financial aid programs that can help you slim down your expenses, or, in some cases, pay for them completely. Finally, look into need-based and merit-based grants and scholarships that can help you cover even more of your expenses. Also consider applying to no-loan colleges, which promise to help students graduate without going into debt.
Frequently Asked Questions (FAQs)
Should community college be free?
It’s a big question with varying viewpoints. Supporters of free community college cite the economic contributions of a more educated workforce and the individual benefit of financial security, while critics caution against the potential expense and the inefficiency of last-dollar free college programs.
What states offer free college?
More than 20 states offer some type of tuition-free college program, including Arkansas, California, Connecticut, Delaware, Hawaii, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Missouri, Montana, Michigan, Nevada, New York, Oklahoma, Oregon, Rhode Island, Tennessee, Virginia, and Washington State. The University of Pennsylvania Graduate School of Education lists 115 last-dollar community college programs and 16 first-dollar community college programs, though the majority are limited to California residents.7
Is there a free college?
There is no such thing as a truly free college education. But some colleges offer free tuition programs for students, and more than 20 states offer some type of tuition-free college program. In addition, students may also want to check out employer-based programs. A number of big employers now offer to pay for their employees' college tuition. Finally, some students may qualify for enough financial aid or scholarships to cover most of their college costs.
Paying for college can be a juggling act. It can be difficult tobalance the amount that you borrowwith how much you work and how quickly you can graduate from college.
If you are determined to graduate debt-free, it may take you a bit longer to graduate, since you may be working full time and taking only a few classes a semester. And if you decide to attend school full-time, you may accumulate more in student loans, since you won't be working full-time.
Consider the following as you decide whether it's better to graduate college more quickly or graduate with less debt.
Working While You Attend College
One of your options to graduate college with less debt is to work full-time and to attend school part-time. This schedule may be a good option if you are already supporting a family, though you should consider how much your earning power will increase once you get your degree.
If you are working, your employer also may offer to reimburse the cost of tuition for a certain number of credit hours each semester. In exchange, you may need to agree to work for them for a set number of years after you graduate. This work-for-school exchange may make attending school possible for you.
For some, working while attending school can be a good option. But if you are not making steady progress toward your degree, you may want to cut back your work hours a bit and add a few more school hours into your schedule.
Tips for Working Through College
Keep your current financial responsibilities in mind, plus how much you'll need to meet your other financial obligations.
Be sure that you find a job that pays well, which can reduce the amount of time you need to spend working while covering your expenses.
Look at alternatives to attending school during the day so you can work. Online options, night school, and classes that only meet once a week can be viable options.
Be sure to take advantage of study groups at your college to help you balance both work and school. Tutors and study sessions can help if you are juggling a lot and trying to do well in school.
Attending School Full-Time and Taking out Student Loans
Another option is to attend school full-time and take out student loans to cover your tuition and expenses. You may justify this by considering the timeline—if you attend school full-time, you will graduate more quickly, so the time you'll spend paying for tuition, books, and other school-related expenses will be less.
If you decide to take out student loans to go to college, it is important to think about your career prospects once you graduate. For example, if you are spending tens of thousands of dollars on a technical degree that will have you earning $10/hour once you graduate, the investment may not be worth it. But if you are attending a prestigious business program that will likely have you earning six figures once you graduate, it may be worth it.
Tips for Minimizing Debt
If you cannot work and go to school, try increasing your course load so you can graduate more quickly.
Take the time to apply for scholarships and grants to help cover your college costs.
Work on reducing your expenses. Be sure to live as cheaply as possible while in school. You may consider living at home to reduce the cost further.
Consider working multiple jobs during the summer and saving up money to reduce the amount that you have to borrow each year.
Finding the Right Balance
It is important to find the right balance for you. Some people have a difficult time working and attending college, so to balance things, they work multiple jobs over the summer and save aggressively to help lower the amount they need to borrow for school.
Other students find that they can work part-time and take a slightly lighter course load while attending a few classes over the summer to keep them on track for graduation. Some semesters the student may be able to increase their hours while planning on a lower workload during the last few semesters of school.
There is not going to be a single right answer for everyone. A lot depends on your major, your expected earnings, and the amount that you end up borrowing. As you decide on your situation, you need to make sure you are following a tight college budget, and that you are working on keeping your tuition costs down. It does not make sense to lose your full-tuition scholarship to keep a minimum wage job.
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