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Bad Debt and Debt Financing in Nigeria: What Businesses can I do to raise Money to pay off my Debt?

Debt Financing in Nigeria: Easy ways to make Money in Nigeria and pay off your Debts

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Have you fallen into a Bad Debt and looking for a business that will earn you money to finance your debts?

In this article, I will talk about Debt Financing in Nigeria and what Businesses you can venture into to raise money to pay off your Debt with ease.

When you’re faced with hard times, don’t beat yourself up to it. Free your mind and do things that make you happy every day. I’ve come to realize that the average adult is indebted to people one way or the other, people don’t talk about debt openly, but that’s the known fact.

There is nothing bad about Debt, what you should avoid is bad debt, these are debts that’ll be difficult for you to pay back even if you sell your entire belongings. Stay away from bad debt, and the only way you can do this is to always test the waters in every financial step you’re about to take.

I can tell you these categorically, 7 out of every 10 adults are owing people one way or the other, and this is not a Nigerian thing.

In fact, in saner climes, debt is encouraged, that’s why they have their credit card system, they can purchase anything upfront as long as their credit score can carry it.

But that’s not the case in Nigeria, we buy everything with cash, and only salary earners in corporate organizations enjoy this luxury of the credit card system.

In saner countries, you can even go to school on loan, you can live your entire life on loans and not feel it as long as you’re still working.

Debt financing is usually when a company or firm sells its fixed-income products, such as bonds, bills, or notes. In equity financing, the lenders receive stock, but debt financing must be paid back. Small and new businesses usually rely on debt financing to buy resources that will facilitate the growth of their business.
Examples of bad debt which are expensive debts that drag down your financial situation include debts with high or variable interest rates, especially when used for frugal expenses or things that lose value like borrowing to throw a birthday party or borrowing to impress your woman, among others.
Bad debt is an expensive debt that drags down your financial situation. Bad debt is the term used for any loans or outstanding balances that a Financial Firm and Credit Loan business deems uncollectible. Bad debt is normal and expected for businesses that provide loans and credit to customers because there will likely be customers who can’t pay their debts back.
Types of debt financing are ways to raise money to finance your debt, You can call it collecting loans to pay off your debts.
Debt Financing can be funded by the following:
  • Bank Loans.
  • Bonds.
  • Debentures.
  • Bearer Bonds.

Debt Financing via Bank Loans is the most common type of debt financing. Bank loans can be Secured Loans or Unsecured Loans.


Good debt can simply be defined as money owed for things that can help build wealth or increase income over time, such as student loans, mortgages, or business loans. Bad debt on the order hand, refers to credit cards with high or variable interest rates or other consumer debt that do little to improve your financial outcomes like borrowing to fund a birthday party or wedding party.
Debt financing is a way small businesses acquire startup capital and save big money. The biggest advantage of debt financing is the ability to pay off high-cost debt, reducing monthly payments by hundreds or even thousands of dollars.

Debt Financing in Nigeria: How To Come Out Of A Bad Debt

I’m a businessman, yes, I’m owing people, I fell into bad debt last year but because I don’t beat myself up to it, it’ll soon be a thing of the past.

When you fall into bad debt, there is a way out.

Stop taking more debts, make peace with everyone around you, talk to your creditors often, don’t be shy about it, and tell people openly you’re owing

When people visit my farm and see what I have on the ground, I quickly let them know that there is a pending debt around it, I don’t own it 100% till I pay back my partners, I do these before they start having that vain thought that I’m a big man and start bringing their personal problems to me

I have other businesses and assets that I own 100% but not my farm, people around me know about this.

My family members, close friends, and everyone around me know about it, I’m not ashamed of owing people.

You need to tell your own side of the story yourself, if you don’t do so, people will write or talk about what they don’t know about you.

They’ll even magnify things, call you names you’re not, and paint an ugly picture of you to defame and demean you.

What kills people more is the lack of trust, support, and names calling that result from the bad debts they’re owing.

This is why you need to tell everyone that comes across you your own side of the story before they start concocting their own for you.

If you’re owing and you’re feeling bad about it, you’re calling for depression and the result is su*cide, if you don’t kill yourself physically, you’ll damage your brain with vain thoughts and as a result, no matter how you think, helpful thought will never come out of you, you’ll be less productive.

This is also the case for those who lost their job, you only lost your job, you didn’t lose your brain.

But whenever you beat up yourself to something you can’t control, you’re killing yourself gradually, and the first effect is damaging your brain’s neural cords, you’ll no longer think and function well.

This is why you see people lose their job, 5years after, they’re still jobless.

When you fell into bad debt

Stop taking more loans, loans can not be used to service loans, it’ll end in total disaster.

Diversify, think of any other smart ways to make clean money.

There are business ventures you can do that’ll not require bogus start-up capital and yet you’ll make a fortune from it.

The internet is a blessing to us, if you know how to use your smartphone very well, you’ll make millions monthly from your bedroom without lifting a finger.

I sell plantain suckers and the bulk of the suckers I’ve been selling are not from my farm, I only market on Facebook and when I get orders, I meet local farmers around and buy from them.

This year alone, I’ve made more than a million naira from sales of suckers only, that’s my pure profit from only linking buyers to sellers.

I ventured into real estate, I only spent 30k or thereabouts to have a registered company but I can tell you vividly now that my real estate portfolio is now worth around N20 million.

We’re still financing the landowner, we’re 65% gone, when we’re done, we’re fencing round, survey, and obtaining CofO, this will shoot our portfolio to be valued around N60m or so when done.

It’s not been easy, everyone you know is doing well, has one debt or the other they’re financing, except you’re born into wealth or into fraudulent means, it’s pretty hard to build any business worth several million from scratch.

You’ll make mistakes first, and as you go, you’ll learn, and keep twerking it till you get it right, you can only operate a debt-free business if you’re afraid to take risks.

So get up man, call your creditors now or send them a message telling them you’re sorry, you’re sure you’ll pay them their money, that they should give you more time, and you have nowhere you’re running to, you’re working earnestly to see you paid them what you’re owing.

Now, in your mind, take the debt off you, and start thinking of productive ways to make cool money legally.

If you need business ideas, feel free to check out our business ideas section, we listed many business ideas for people like you free of charge, and we may even mentor you for free if I see signs of seriousness in you.

Those of you that have lost your job and have been finding it difficult to do anything meaningful with your life can also check out some of the business ideas you can start with little or no capital.

2 Ways you can fall into bad Debt in Nigeria

I learned there are two ways you can fall into bad debt

1. Chronic Debtor:
2. Bad business decision

The introduction of loan apps has made many a chronic debtor, they go borrowing from any loan apps they come across with no viable means of paying back. I don’t have much to say about this category of debtors.

There are also categories of people that go about people to people to borrow money and vendor to vendor to buy goods on credit, this is crude, uncouth, and will rub off your dignity in no time.

It’s a bad habit, it’s criminal as you’re ruining other people’s business, if you’re doing this, I’ll advise you to stop, it’ll ruin you completely.

Easy ways to make Money in Nigeria and pay off your Debts – Businesses you can do to raise Money to pay off your Debt

If you fall into bad debt due to a bad business decision, the only way out is diversification, selling high-ticket products that’ll get you out of debt in no time.

I’m not saying you should leave your business totally, but there are other businesses you can do on the go with little or no start-up capital.

Make use of your smartphone wisely, you can make money on social media; youtube, Facebook, TikTok, Instagram, and others.

Go to any car mart around you, meet the owner, and tell him you want to help advertise his cars so you can get a commission on every sale.

Snap pictures, and upload them on your social media status, if you’re consistent with it, you’ll start getting buyers in no time. Think of it, if you sell only 1 or 2 cars in a month with a commission of 200k or 400k.

Meet credible real estate vendors, and use the same method above, just one or two transactions with these guys can sort your problem entirely.

Do agro trading, link buyers to sellers in a dropship manner, and earn good money for yourself.

Learn Crypto trading, Binary trading, and Forex trading online and make money from the comfort of your home.

You can acquire a digital skill and become a freelancer and make money online. There are many lucrative digital skills available for you.

Debt Financing in Nigeria: Summary

In this article, I have been able to let you know that there is nothing terrible about Debt, what you should avoid is bad debt, these are debts that’ll be difficult for you to pay back even if you sell your entire belongings.

Please, you just have to stay away from bad debt, and the only way you can do this is to always test the waters in every financial step you’re about to take, avoid loan shark apps, stop living a fake life or borrow things to show off, among others.

I have also talked about many lucrative business ventures you can go into that will require small start-up capital which will help you get out of debt quickly.

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