How to Get Grants for Small Businesses in Nigeria

Almost everyone who launches a new company or business venture seeks funding to get going. The application process for small business grants is one of the fastest and least expensive ways to raise money for your company in Nigeria.

Unfortunately, there aren’t truly very many incentives for small enterprises offered by the federal or provincial governments of Nigeria.

What are Grants?

Grants are sums of money given to people or organizations to help them grow without expecting repayment. Large businesses, governments, non-governmental organizations, and wealthy individuals all award grants for a variety of reasons. You do not have to pay anything back, unlike loans.

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How to Obtain Grants

There are various factors to consider before applying for grants. There are various avenues for acquiring grants but there are some criteria that need to be met. They include:

Preparation

When you wish to submit a grant application, you must be ready. You must be well-versed in the rudiments of your intended business venture. Why do you require the funding?

Is it for a project, a business, or what? What’s the strategy? How will the grant benefit your venture or concept? You must be aware of all of these. You must have drafted out a business plan or a blueprint if it is for a business or a concept.

Grants are only granted to people or organizations that the giver thinks will have a significant impact. So get ready. Your objective is to persuade the donor that you deserve the grant.

Eligibility Status

You must be certain that you are qualified before applying, or you risk wasting your time. Some grants have geographical restrictions. Make sure that it includes your location. Some are scope-bound.

Grants for small businesses, agriculture, health, and research, among other things, are available. make sure it meshes with your venture or concept. There may be requirements before you can obtain some grants.

Years in business, the requirement for specific documentation, or anything else. Verify that you have met all requirements. And acquire those you lack.

Send Your Application In

When you have completed all of the aforementioned stages, you are now ready to submit your application.

Visit the appropriate website to submit, or if mailing your application or visiting the office in person is required, follow those instructions.

Available Grant Schemes for Small Businesses in Nigeria 

The following are the trusted agencies that award grants to small businesses

The International Programs/Schemes

Center For International Private Enterprise (CIPE)

A non-profit organization in the private sector called the Center for International Private Enterprise (CIPE) offers grants to non-governmental business associations like chambers of commerce, employers’ federations, trade associations, and private enterprise-focused research teams all over the world.

Without the involvement of the government, grants are given privately and directly to non-American corporate entities. The various objectives of CIPE include, among others, assisting in the development of autonomous business groups to broaden the pool of talent in business in developing countries.

Bill and Melinda Gates Foundation (BMGF)

The Bill & Melinda Gates Foundation (BMGF), formerly the William H. Gates Foundation, was established in 2000 to enhance people’s quality of life all over the world.

Although it is available everywhere, Africa is where it is most prevalent. Additionally, as implied by the name, it is owned and supported by Melinda Gates, the ex-wife of veteran billionaire Bill Gates.

The foundation was the world’s largest privately owned philanthropic organization as of 2017, with assets valued at $51.1 billion. The foundation frequently awards funding to businesses. These grants can be used by American and African organizations that provide solutions to world issues.

The funds mostly focus on humanity. Grants for agriculture are frequently provided.

Africa Enterprise Challenge Fund (AECF)

A development group called the Africa Enterprise Challenge Fund seeks to encourage the expansion of the continent’s private sector. Businesses and entrepreneurs from throughout Africa are eligible for the grant.

The AECF fund’s value as of 2018 is $361M. Several international partners, including the governments of Canada and Australia, have donated to the fund.

Nigeria-wide businesses have access to the fund. With a primary focus on agriculture, agro-allied business, climate change adaptation, access to information, and financial services, the AECF provides grants and no-interest loans to African (including Nigerian) enterprises and entrepreneurs with the most creative ideas.

Through competitions, the fund is made accessible. Entrepreneurs and businesses are asked to submit their creative concepts.

Ford Foundation Grant

One of the most well-known philanthropic organizations in the world is The Ford Foundation. The foundations, which were founded in 1936, provide funding to groups throughout Asia, Africa, the Middle East, Latin America, and the United States.

Since its founding, the foundation has distributed nearly $16 billion in grants across the globe.

The Ford Foundation concentrates on programs that advance human knowledge, fight injustice and poverty, and promote democratic principles.

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United States African Development Foundation

An independent government organization of the United States called the USADF was founded to offer financial and technical support to African businesses.

The USADF provides up to $250,000 in grants for operational support, business expansion, and market access to early-stage energy, agribusiness, and youth-led ventures that help underserved areas in Sub-Saharan Africa.

Young people and women who venture into agriculture are the organization’s main focus.

The Local Programs/Schemes

Tony Elumelu Entrepreneurship Program (TEEP)

One of Nigeria’s business tycoons, Mr. Tony Elumelu, created the TEEP annually through the Tony Elumelu Foundation (TEF). The initiative, which was introduced in 2015, aims to give African entrepreneurs 10,000 USD as capital.

From a pool of more than 50,000 candidates, the program chooses 1,000 entrepreneurs from all around Africa each year.

Each application is rigorously examined by business professionals in the sector, and winners are chosen based on the viability of the market, the accuracy of the financial projections, and the strength of the management team.

You Connect, Nigeria

The Federal Ministry of Finance, Nigeria offers a multimedia program called YouWiN! Connect. By providing young Nigerians with enterprise education, the initiative hopes to encourage entrepreneurship, job development, and prosperity.

Through appropriate SME development tools, Nigerian business owners will increase their productivity. These businesses are promoted by Nigerian youths in industries with similar goals to those of the government, which include diversifying the economy and fostering competition and transparency.

Lagos State Entrepreneurs’ Trust Fund (LSETF)

Established in 2016, the LSETF’s mission is to give the people of Lagos State financial assistance for jobs, wealth building, and unemployment relief. The LSETF is a tool that encourages all Lagos state citizens to be creative and innovative while lowering unemployment rates throughout the State.

The Fund’s mandate is to invest directly in assisting Lagos residents in expanding their Micro, Small, and Medium Enterprises (MSMEs) or developing the skills they need to find better employment.

Bank of Industry (BOI)

Young and skilled entrepreneurs wishing to enter different sectors of Nigeria’s economy can now take advantage of a program for youth empowerment that was just introduced by the Bank of Industry (BOI).

By enhancing young capacity and supporting their company ideas, BOI’s Youth Entrepreneurship Support (YES) Programme seeks to solve the alarming situation of youth unemployment in Nigeria.

The YES program aims to give young people the necessary knowledge and skills to become self-employed by launching and running their enterprises.

Africa’s Young Entrepreneur Empowerment, Nigeria (AYEEN)

Africa’s Young Entrepreneurs (A.Y.E.) is dedicated to developing young business people throughout the continent by building platforms that promote intra-trade.

We are committed to fostering the next generation of outstanding African businesspeople who will influence their countries’ economies and political systems.

AYEEN seeks to provide small business financing across the economy. Winners would receive their awards directly from the sponsors with no involvement from the organizers.

However, the firm owners and their operations will be properly observed for a year. The only criterion for the program is that the applicant is a Nigerian and that the firm is situated in one of Nigeria’s 36 states.

Final Notes on How to Get Grants for Small Businesses in Nigeria

The fastest way to die is to not dream. The fastest way to kill a dream is to not build on it at all. For many young entrepreneurs, lack of capital has always been an assassin of big ideas. With grants, however, that has been nipped in the bud. You just have to determine which scheme will favor you best. 

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