How Yetunde Grew Active Foods from 7 Employees to Over 250

Yetunde founded Active Foods Limited as a small catering and food production business with just seven employees. As the business grew, so did the challenges. Rising food prices increased production costs, unreliable electricity disrupted operations, and demand began to outpace the company's production capacity. Expanding meant buying commercial equipment, but like many small business owners, she did not have the type of collateral traditional banks typically require.

The Funding That Made Expansion Possible

Instead of applying for a conventional business loan, Yetunde secured funding through the Digital Cashflow Loan Programme, an Access Bank initiative supported by the World Bank's Women Entrepreneurs Finance Initiative (We-Fi).

Unlike many traditional loans, the programme assessed her business using its digital transaction history and cash flow rather than relying primarily on landed property as collateral. That gave her access to the capital she needed to expand.¹

With the funding, Active Foods purchased commercial baking and food processing equipment, increased production capacity, and improved parts of its operations. The investment allowed the business to produce more, serve more customers, and expand its workforce.

Today, Active Foods employs more than 250 people, up from the seven employees it started with.¹

What Entrepreneurs Can Learn

Yetunde's experience highlights an important point. Access to funding alone does not grow a business. How the money is used matters just as much.

The loan was used to invest in equipment and production capacity, allowing the business to increase output instead of covering day-to-day expenses. For many small businesses, funding delivers the greatest value when it helps the business generate more revenue, improve efficiency, or meet growing demand.

Funding Opportunities Available to Nigerian Businesses :

Several funding programmes are available to businesses looking to expand. Each serves a different purpose, so choosing the right one depends on your business stage and financing needs.

Bank of Industry (BOI)

BOI provides financing for businesses in sectors such as manufacturing, agribusiness, renewable energy, technology, and healthcare. The bank also runs programmes for women-owned businesses, youth-led enterprises, and equipment financing, making it one of the country's largest sources of long-term business funding.

Development Bank of Nigeria (DBN)

DBN supports small and medium-sized businesses by providing funding through commercial banks and other participating financial institutions. Its programmes are designed to improve access to longer-term financing for growing businesses, particularly MSMEs.

SMEDAN Support Programmes

SMEDAN regularly partners with financial institutions and development organisations to connect MSMEs with loans, grants, business training, and capacity-building programmes. While many entrepreneurs know SMEDAN for its training, the agency also provides access to funding opportunities through its various initiatives.

Cash Flow-Based Lending

An increasing number of lenders now assess businesses using cash flow and transaction history instead of relying entirely on traditional collateral. This approach is creating new financing opportunities for businesses with consistent sales but limited assets, especially women-led enterprises.

Final Thoughts

Finding funding is only one part of growing a business. Before applying for any loan, make sure the money will help your business expand, increase production, or generate more revenue. Borrowing to solve temporary cash shortages is very different from borrowing to invest in growth.