Getting a Small Business Grant in Nigeria might be a difficult undertaking. Therefore, when you ask an entrepreneur what his or her problem is, the first thing they say is “no money.”
Is there really no money, or is this just something people say all the time? If it’s in Nigeria, there are genuinely insufficient resources for obtaining small company funding. Because the handful that is offered is highly competitive, applicants must have a unique business idea and positioning.
Many people are unaware of the funding available to small businesses. So, in this article, you will learn about several funding opportunities, such as various small company grants. However, many businesses are unaware of the significant differences between loans and grants.
5 International Grants For Small Businesses in Nigeria
1. World Bank Grants
The World Bank grant is one of the international grants for small businesses in Nigeria. The World Bank is a multilateral financial institution that provides loans and grants to businesses and business owners all around the world. They collaborate with developing-country governments to help enterprises, education, health, agriculture, and other areas.
You might want to look at their website to see how to apply and if you match the requirements. There are, however, a few pointers on how to apply for World Bank grants:
- Visit their website, look through the list of grants they offer, and carefully select the one that best suits your needs.
- Prepare a strong business proposal or plan that will entice grant givers to award you the funding.
- To learn more about the funding, conduct thorough research and speak with other business owners who have benefited from it.
- After you have assessed yourself and made sure you’re qualified, you can start working on your grant application.
- Examine your grant application thoroughly, ensuring that you meet all the requirements and provide all the essential information. You should save a duplicate of your response as well. Following that, you can submit your grant application and wait for a response.
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2. International Monetary Fund
The International Monetary Fund (IMF) is a multilateral financial agency that provides grants to non-governmental organizations (NGOs) to help them support company owners as well as individuals who are poor or disadvantaged.
Nigeria has been a member of the IMF since its independence and has reaped significant benefits from it. The IMF has helped a lot of small business owners. All you have to do is to do some research, apply, and make sure you fit their requirements.
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3. The United States African Development Foundation (USADF)
The United States African Development Fund (USADF) was founded to give financial and technical help to African industries and enterprises.
It is a non-profit organization that provides grants of up to $250,000 for business expansion, early-stage agribusiness, and operational support, among other things. Individuals, businesses, and organizations making a difference in their communities are eligible for the USADF grant.
It also focuses on agriculture, therefore if you own a firm that is involved in agriculture, wants to get involved in agriculture, or sells agricultural produce, you should apply for this award. Small enterprises in Nigeria and other African nations are eligible to apply. For additional information, go to their website.
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4. GroFin Fund
GroFin Fund is one of the international grants for small businesses in Nigeria. It is a financial institution that assists SMEs in succeeding by offering business support and grants to help them advertise and grow their businesses. They think that the most potent driver of social and economic growth that decreases unemployment and improves people’s lives is a small and medium-sized business that produces jobs.
It was founded in 2004, and since then, it has invested in over 700 SMEs, supported almost 90,000 jobs, and is present in 14 African and Middle Eastern countries. They have pledged $500,000 to help small and medium-sized enterprises in Nigeria.
It pays out a minimum of $100,000 and a maximum of $100,500 to support small enterprises in Nigeria, and it usually gives out these monies for six years. Visit their website to apply.
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5. Africa Netpreneur Prize Initiative
The Africa Netpreneur Prize was founded by Alibaba founder Jack Ma. The Jack Ma Foundation was created with the sole purpose of assisting small companies in Africa’s 54 countries. The goal of the award is to recognize entrepreneurs that have what it takes to have a good impact on the local community and economy.
This grant is for a small business owner who has what it takes to provide a solution to a specific problem. It will help you grow and promote your business. All entrepreneurs, regardless of gender, age, or ethnicity, are welcome to apply to the Jack Ma Foundation.
The prize pool is $1 million, which will be split among ten winners. You might get lucky and be one of the winners. You can apply online and learn more about the grant on their website.
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3 Local SMEs Grant You Can Access As An Entrepreneur
- Tony Elumelu Entrepreneurship Programme (TEEP)
- Diamond Bank BET Programme
- Bank of Industry Grant
1. Tony Elumelu Entrepreneurship Programme (TEEP), small business grant
- It is usually an annual duration
- The amount of the grant is about 3 million naira
- Available: 3
- Giver: private individual.
- Criteria: it has to be 18 years and older, a citizen of an African country, profit-oriented, and based in Africa, as well as between the ages of 0 and 3.
Tony Elumelu is an entrepreneur who is passionate about helping African entrepreneurs. The Tony Elumelu Entrepreneurship Foundation was founded in 2015 with the goal of creating one million jobs in ten years.
2. Diamond Bank BET Programme
- It is an annual duration
- Amount: 3 million naira
- Available: 3
- Giver: private financial institution–Bank.
- Stage/tape: Seed capital
This is a small business grant project aimed at providing N3,000,000 in seed funding to three entrepreneurs to help them launch their businesses.
Seed capital refers to the money you will need to get your concept off the ground, much like a seed that grows into a tree. Because of the incentives included, the Diamond Bank BET program is suited as a small business award.
3. Bank of Industry small business grant
- Duration: Annually
- Available: 2 grant schemes
- Giver: Public institution–government.
Bank of the industry is one of the local grants for small businesses in Nigeria. The Bank of Industry is a government-owned institution dedicated to helping Nigerian entrepreneurs. They created the Youth Entrepreneurship Support Program (YES).
The YES project was created to combat the country’s high unemployment rate by providing young entrepreneurs with the necessary skills to start their own firms and so enhance self-employment.
Difference Between Loan and Grant
People are used to finding it difficult to differentiate these terms which are “Loans and Grants”
What is a loan?
A loan is referred to as money borrowed from a bank or other financial institution. The business owner must repay the loan, plus interest, once a set length of time has passed.
In this scenario, the provider is referred to as a lender, while the recipient is referred to as a borrower. To receive more free business education and information about small company grants and financing, sign up for our newsletter. You can also learn and explore the legit business loans in Nigeria.
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What is a Grant?
A grant is a money or a fund that the grant giver has given to you. The gift sender could be a foundation, the government, a business, a firm, or any other individual. You, as a person or as a legal organization, are referred to as “given to you.”
A legal person is an entity, such as a company, a business, or a non-profit organization. Some people refer to it as a subsidy. It is granted to you with no strings attached, such as interest rollover or payback. Simply, you are not required to repay if all requirements are met.
This isn’t a gift! There have also been a few dubious grant winners who took the money but didn’t deliver. A grant always comes with stipulations that must be completed in order for the award to be genuine.
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Frequently Asked Questions on Grants For Small Businesses in Nigeria
NGO Grants in Nigeria
Grants in Nigeria for NGOs
- United States African Development Foundation (USADF) grants.
- Africa Enterprise Challenge Fund (AECF) grants.
- United States Agency For International Development (USAID).
- The Centre for International Private Enterprise Grant.
- International Monetary Fund (IMF) Grants.
- United Nations Democracy Funds (UNDEF)
Business Grants in Nigeria
- YouWin Connect Nigeria
- AYEEN Financial Grants
- Lagos State Entrepreneurs Trust Fund
- Bank Of Industry
Grants for Startup Business in Nigeria
- Bill and Melinda Gates Foundation Grants
- Center for International Private Enterprise (CIPE) Grant.
- The Rockefeller Foundation Grants
- Ford Foundation Grants
Conclusion
Applying for business grants will help you advertise and build your business, which will help you become a successful entrepreneur or business owner.
All you have to do is conduct thorough research, verify your eligibility, and then apply. It’s important to note that not all grants are available to Nigerian business owners, so double-check before applying.
