Turning ₦100k into Millions: Smart Ways Low-Income Earners Can Fund Projects

Most Nigerians have ideas, it’s just money. If you are a low-income earner, you may be stuck at the junction of ideas for a very long time without actual results. In this post, you will discover how a ₦100k salary can unlock between ₦1,000,000 and ₦5,000,000 to finance a project or business. It has worked for many people, you don’t need to believe me.

Firstly, who is a Low-Income Earner?

A low-income earner in Nigeria is someone that earns below ₦100k a month. That’s old record. Now, people that earns below ₦500k are considered low-income earners. Not fact though, just an assumption based on the current economic hardship in the country.

Internal Sources of Financing

Step 1: Personal Savings

Over time, money grows. It’s like a cassava plant. It takes about a years to fully mature. If you harvest after 5 months, you get tomato-sized tubers. If you harvest after 2 years, you get wood that even my goats will reject.

Same applies to savings. Just make up your mind and know when to “plant” and “harvest your crop.”

Example:
Chidi, a tailor earning ₦90k monthly, saved ₦20k consistently for a year.

Some people can save enn!

Now, at the end of the year, he has about ₦240k in savings. This is enough to buy an industrial sewing machine to triple his output.

Step 2: Family

If your immediate family can’t help you, don’t bother trying the other steps. Just go look for all these loan apps way dey pay person shikini money, and on top of that, dem go use call destroy your life. Plus, you repay heavily.

No family is that wretched that they can afford to support you with “something”.

“My brother, my sister; at all, at all, na im bad pass.”

Example:
Ngozi wanted to start a foodstuff business. Her brother borrow her ₦150k, interest-free. Now, she was able to start buying food items in bulk and setting up a small kiosk Area 1 junction in Abuja.

I dey sure, within six months, she don repay the loan.

Step 3: Friends, Associates, and Other Connections

“The relationship you have built over time can build wealth.” I just made that up.Let’s assume you are a teacher. If you’ve ever taught a parent’s child for free or at a token, you can request support from that parent. It could be a loan to be repaid later. No collateral, no risk, no interest.

Another way is reaching out to friends to contribute toward your project. Make sure you’re asking for what they can afford.

This works best if you’ve supported them before. Maybe at their wedding, birthday, or the naming ceremony of young Chinedu.

You no butter my bread, you dey ask question. Who you help!

Example:
Tunde wanted to set up a barbershop. He asked five close friends to contribute ₦30k each to support his business. They all agreed to make it ₦50k each. That’s ₦250k because he has “friends”.

If you ask for help from five friends and no one responded. My brother, you don’t have friends.

External Sources of Financing

Step 4: Build Value

Build or create something of value for people.

Let me explain.

If you can develop a way to bring in more customers to a business, you can monetize it. If you create a solution that helps children with learning disabilities, you will find opportunities to get money for your projects.

Once you build something of value, people will naturally contact you or link you to someone willing to pay.

Example:
Fatima, a computer science graduate, developed a small mobile app that helps traders record daily sales. With the right mind-set and publicity, within weeks, people started paying her to install and customize it. This later became the seed money for her start-up tech business.

Step 5: Loans (Not Loan Apps)

I will never advise you to use loan apps. They are frustrating and won’t help in the long run. Instead, consider loans from people around you. A good example is from your colleagues, associates or mentors.

This method is safer, and the amount may be large enough to meet your target. Plus, it is risk-free and with no headache.

Example:
Emeka, one of my friend who works in the bank, got ₦700k from a senior colleague to further scale-up his skill acquisition centre. He was able to repay him in less than two month. And today, that business generates steady income for him.

Mistakes to Avoid When Financing a Project

1. Depending on Loan Apps

Loan apps may look tempting, but they often come with high interest rates, harassment, and endless debt cycles. Don’t use any, abeg!

2. Starting Without a Plan

Jumping into a project without clear goals, a budget, or a repayment plan is like crossing an express road without looking left and right, left, right and left again. Not only that, walking majestically with your hands in your pocket.

3. Overestimating Support from People

Don’t assume family or friends must support you. Because they are your blood does not mean they must take you as priority. Be grateful when they do, but always have a backup plan.

4. Mixing Business and Pleasure

If you use your savings for “enjoyment”, your project will never take off. Discipline is key. There is a clear difference between buying a car and buying a taxi.

5. Borrowing More Than You Can Repay

Even if you get a friendly loan, never borrow an amount you cannot realistically repay. It can destroy trust and relationships. Be wise to know your limit. If you give two people ₦10M to build a house on the same area and with the same contractor, the difference will still be visible.

To cut the story short,

To Finance a project is not easy, but it is possible. Start small, be disciplined with savings, and don’t underestimate the power of family, friends, and the value you can build for others. My brother, avoid shortcuts like loan apps that may trap you in endless repayment cycles and headaches.

All in all, focus on relationships and value creation. Patience and with the right approach, your ₦100k salary can open doors to millions in opportunities.