Economy
Bootstrapping your business from the ground up
By Emmanuel Otori
The term “Bootstrapping” is derived from the phrase “to hoist oneself up”. It is a method of starting one’s own business utilizing one’s own resources.
A bootstrapped startup is a business that began and grew without the help of outside investors. Bootstrapping a business does not imply that the company will not seek outside funding. In fact, a bootstrapped firm could be self-funded or wholly funded by its founders and founding team. These businesses do not solely rely on outside investors such as venture capitalists to support them. Bootstrapped businesses are usually slower than funded businesses because they often start and scale without the intervention of investors.
Process of Bootstrapping
➔ Customers/audience – are usually the hope of bootstrapping businesses as they seek to provide services and sales to the customers needs. Businesses offer quality and services of value to establish a customer base.
➔ Organic growth – customers are used as a way to grow the business as hinted earlier. Its growth does not have to be fast as It is more focused on bringing customers into contact with the business rather than acquiring capital from venture capitalists.
➔ Cash flow – the cash spent and received in the period of operation makes its cash flow. Future investors can look at the books of its cash flow to have a glimpse into the business history.
➔ Reinvesting in the business – revenue generated in the course of running the business is ploughed back to generate more for growth and expansion purposes.
➔ Viable business model – at this point, the business takes a structure that is realistic, feasible and solid worthy of investing in.
➔ Improved customer base – loyalty is earned when the customers can rely on the business, hence, growth kicks off.
Sustainable ways of Bootstrapping
● Debt and owner financing – putting your own money into the company.
● Sweat equity – putting a significant amount of effort yourself rather than employing people to run the operations. It is not sustainable in the long run, but a good approach to raising your business from the ground up to make some headway.
● Cost management – Bringing your operating expenses to a bare minimum.
● Income-based financing – earning early revenue through the sale of services and products, the cashflow can be used to fund the business continually.
Pros and Cons of Bootstrapping
Pros
● Flexibility – this cannot be over emphasized as founders have the liberty to carry out business operations in ways and manners that suit the process of growing it. This means being able to adjust swiftly to new situations as they emerge. Business owners can adjust their strategies to negotiate or overcome unexpected challenges.
● Growth mechanism – Bootstrapped businesses take the risk of growing from scratch without money being pumped into it. Such businesses solidify if it thrives through the hurdles of raising from the ground up.
● Business perception – Customers, revenue and profit are the main focus to keep the business going rather than scalability. In as much as Bootstrapped businesses want to scale, usually the founders concentrate on unit economics, considering the company’s revenue and profitability. Profits are what will allow the company to grow and scale, especially because it is a self-funded venture. A bootstrapped business will be more successful and long-lasting in the long run unlike funded startups as they are more concerned with rapidly accelerating their businesses and expanding at 5 to 10x pace than with profit or a long-term business strategy.
● Business control – Bootstrapped founders have 100% control of the startup vision and operations unlike funded businesses that lessens its ownership by external support.In a shared ownership business, founders are likely to lose their own companies due to investor funding, even at an early stage. Bootstrapped businesses have the power to make full decisions in regards to the business.
Cons
● Slow scaling – Due to insufficient funds, bootstrapped businesses must rely on revenue and profits to scale their operations. This affects the growth level unlike funded businesses with full access to capital and only have to keep the business running more on a faster pace. Bootstrapped businesses must contend with slow growth in their early years until they accumulate enough customers, revenue and profits for fast growth.
● Limited network connections – Bootstrapped businesses are oftentimes faced with the challenge of limited to no network connections unlike funded businesses who get introduced to other venture capital companies. These companies connect their investee companies to other venture capital companies for collaboration which fosters a more rapid growth.
● Risk taking – Bootstrapped businesses bear all the risks there is to raising a business from the ground up. The operational risks rest on the founding team who takes responsibility for whatever goes on in the growth process. They bear the financial risks also as there are no investors yet.
One can consider running a rapid growing or slow scaling business. Rapid growing businesses often use funding from venture capital. Here external investors can provide capital, security, scaling speed, and advice/network, but they can also exert influence over you based on their preferences. Whereas, slow scaling businesses using bootstrap have complete control over the rate at which the company expands.
However, even if you want to raise venture capital, bootstrapping is a great way to get your business started.
Emmanuel Otori has over 9 years of experience working with 100 start-ups and SMEs across Nigeria. He has worked on the Growth and Employment (GEM) Project of the World Bank, Consulted for businesses at the Abuja Enterprise Agency, Novustack, Splitspot and NITDA.
He is the Chief Executive Officer at Abuja Data School.
A total sum of N1.678 trillion, being February 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.
The revenue was shared at the March 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja; chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The meeting was attended by the Accountant General of the Federation, Shamseldeen Ogunjimi.
The total distributable revenue of N1.678 trillion comprised distributable statutory revenue of N827.633 billion, distributable Value Added Tax (VAT) revenue of N 609.430 billion, Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion and Augmentation of N178 billion.
According to a communiqué issued by the Federation Account Allocation Committee (FAAC), total gross revenue of N2.344 trillion was available in the month of February 2025. Total deduction for cost of collection was N89.092 billion while total transfers, interventions, refunds and savings was N577.097 billion.
The communiqué stated that gross statutory revenue of N1.653 trillion was received for the month of February 2025. This was lower than the sum of N1.848 trillion received in the month of January 2025 by N194.664 billion.
Gross revenue of N654.456 billion was available from the Value Added Tax (VAT) in February 2025. This was lower than the N771.886 billion available in the month of January 2025 by N117.430 billion.
The communiqué stated that from the total distributable revenue of N1.678 trillion, the Federal Government received total sum of N569.656 billion and the State Governments received total sum of N562.195 billion.
The Local Government Councils received total sum of N410.559 billion and a total sum of N136.042 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
On the N827.633 billion distributable statutory revenue, the communiqué stated that the Federal Government received N366.262 billion and the State Governments received N185.773 billion.
The Local Government Councils received N143.223 billion and the sum of N132.374 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
From the N609.430 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N91.415 billion, the State Governments received N304.715 billion and the Local Government Councils received N213.301 billion.
A total sum of N5.276 billion was received by the Federal Government from the N35.171 billion Electronic Money Transfer Levy (EMTL). The State Governments received N17.585 billion and the Local Government Councils received N12.310 billion.
From the N28.218 billion Solid Minerals revenue, the Federal Government received N12.933 billion and the State Governments received N6.560 billion.
The Local Government Councils received N5.057 billion and a total sum of N3.668 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
The Augmentation of N178 billion was shared as follows: Federal Government received N93.770 billion, the State Governments received N47.562 billion and the Local Government Councils received N36.668 billion.
In February 2025, Oil and Gas Royalty and Electronic Money Transfer Levy (EMTL), increased significantly while Value Added Tax (VAT), Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty and CET Levies recorded decreases.
Economy
Protesters urge president Tinubu to protect Diaspora housing investments along Lagos-Calabar coastal highway
A group under the aegis of Renewed Hope Concern Citizens (RHCC) on Friday staged a peaceful protest, calling for President Bola Tinubu’s intervention in protecting housing investments owned by Nigerians in the diaspora along the Lagos-Calabar coastal highway.
The protesters gathered in front of the United States Embassy in Abuja, carrying banners with inscriptions such as; Minister of Works, Senator Umahi should revert to the original gazetted alignment as promised. Enough is Enough; Association of Nigerian Diaspora Investors (ANDI) has cried enough, please intervene to save their energy to promote, support, and assist the Renewed Hope Administration; Renewed Hope Concern Citizens want Diaspora Investments to be protected and given adequate attention among others
“As committed stakeholders in the nation’s economic progress, we have consistently supported the government’s vision, particularly in revitalizing Nigeria’s infrastructure and energy sector. While we acknowledge the administration’s positive strides, recent developments have raised concerns about the misalignment of energy policies, particularly regarding the 2006 Gazetted alignment.
“We urgently call on the Minister of Works, Senator David Umahi, to restore the 2006 Gazetted alignment to ensure continued growth and stability in Nigeria’s energy sector,” said Hon. Tayo Agbaje, Chairman of RHCC, while addressing journalists.
The group refuted the Minister’s claim that an underground cable warranted the removal of structures in Okun Ajah, Lagos and outlined several reasons why President Tinubu’s intervention is crucial.
According to them, The 2006 Gazetted alignment has long provided a stable and predictable framework, essential for maintaining investor confidence in Nigeria’s energy sector.
“Diaspora investors contribute significantly to job creation, business growth, and the overall economy, making their protection vital to sustaining these contributions.
“The President should investigate the Minister of Works’ claim about the underground cable allegedly interfering with the 2006 Gazetted plan.
“Restoring the alignment will reinforce Nigeria’s commitment to a stable investment climate, boosting foreign investor confidence and attracting much-needed capital for infrastructure development.
“Deviating from established policies creates uncertainty, undermining both current and future foreign investments.
“Maintaining the 2006 Gazetted alignment will signal Nigeria’s dedication to long-term economic stability, further reassuring both local and international investors,” the group stated.
The RHCC reaffirmed its support for the Association of Nigeria in Diaspora Investments (ANDI) in its quest to uphold the 2006 Gazetted alignment plan of the Lagos-Calabar Coastal Highway.
They urged the government to act swiftly to protect diaspora investors, as this will strengthen Nigeria’s investment future and ensure continued economic success under the Renewed Hope Administration.
Economy
Ogunjimi promises to collaborate with ex-Accountants-General in taking treasury house to greater heights
The newly appointed Accountant General
of the Federation, Mr Shamseldeen B. Ogunjimi said he would collaborate and tap from the wealth of experiences of all Former Accountants -General of the Federation to bring the nation treasury to a greater height.
Mr Ogunjimi disclosed this while receiving two Former Accountants-General of the Federation, Dr John Naiyeju and Dr Ibrahim Dankwambo in his office in Abuja.
Speaking earlier, Senator Ibrahim Dankwambo suggested the upgrading of the Treasury Academy, Orozo owned by the Office of the Accountant-General of the Federation (OAGF) to a Degree (University) awarding Institute.
Also, Dr. John K. Naiyeju charged the new Accountant-General to carry along everyone and advised him to make staff welfare his priority.
In a related development, the Accountant-General of the Federation expressed his willingness to work with all professional organisation that will bring positive development to the nation, especially, his professional and Academy colleagues of the doctorate class.
Mr Ogunjimi called on his classmates to come up with ideas and suggestions that will enhance the management of the nation’s treasury that will positively affect the economy development.
In his remarks, the Chairman Forum of Doctorate Students, Ibrahim Aliyu said that they were in Treasury House to congratulate one of their own and assured him of their support towards his successful tenure.
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