The World Bank Grants for small businesses in Nigeria have been supportive to an extent. The World Bank (a member of the World Bank Group) is a monetary international finance organization that is capable of giving funds to countries for capital-intensive projects.
Meanwhile, there are two institutions that govern the world bank: the International Bank for Reconstruction and Development (IBRD), which has 189 members, and the International Development Association (IDA), which has 173 members. The World Bank’s mission is to drastically reduce worldwide poverty levels.
In this piece of article, we will go through how to apply for World Bank grants for small-medium enterprises (SMEs) in Nigeria.
Does the World Bank Give Grants to Individuals?
The fact is that Individuals are not eligible for grants; only institutions will be. Academic, research and non-profit organizations are all able to apply. When it comes to the number of Proposals, each organization may submit up to two proposals, however, no organization will be awarded more than one grant.
World Bank Grants in Nigeria For Small Business
The World Bank grant aspires to invest in small enterprises through the model microfinance banking system in the banking industry. She will provide over 10 billion naira in grants to assist build model microfinance banks, which will then empower billions of local businesses to start and flourish.
Furthermore, the word bank grants for small businesses are grants given to startups. A small business grant is a sum of money given to an entrepreneur to help them start a new firm or expand an existing one. Unlike loans, not all grants will be needed to be repaid by the financier. Small company grants are typically obtained from a variety of sources, including:
- Government-sponsored entities
- International organizations, and
- Non-governmental organizations.
Where Can You Find a List of All Available Grants in the World?
You can find all available grants when you search through this website, www.grants.gov – It is a free USG service and is the single best resource for learning about USG grant opportunities. They have about 26 federal agencies and 12 independent federal agencies, executive branch offices, and commission have opportunities listed on the website.
What Type of Assistance Does the World Bank offer?
The IBRD and IDA compose the World Bank; these groups through the World Bank offer developing-country government’s money, policy advice, and technical help. IBRD aids middle-income and creditworthy poorer countries, while IDA concentrates on the world’s poorest countries.
Overview of World Bank Grants In Nigeria
The World Bank ever since 1958 has been assisting the Nigerian government to combat poverty – alleviating the citizens’ condition – developing the standards of living off the populace of the African Nation with well over 130 IBRD loans.
The World Bank Group has no doubt become a formidable force of the Nigerian government when it comes to fighting poverty, penury, lack – all manner of the plight of her citizens. The group has been fantastically supportive of Nigeria and around the following priorities:
- Creation and maintenance of job diversification, particularly for young people, the poor, and women in marginalized areas.
- Using fine-tuned policy sponsoring and performance-responsive financing, re-establish macroeconomics and financial growth.
- Agricultural funding with the goal of increasing sustainable productivity.
- Investing in and promoting economic growth and changes that are not dependent on oil.
- Addressing climate change challenges.
- Restoring order in northeast Nigeria’s conflict-affected areas.
- Advocating for a cultural and governmental commitment to gender equality.
- The improvement of social service quality.
The World Bank has been bold in boosting the Nigerian economy through its initiatives in the financial sector.
4 Types Of Small Business Grants In Nigeria
Small business grants are made available for different scenarios, like:
1. Direct Grant
This is a monetary reward granted as part of a company’s start-up or expansion budget. The monetary prize covers a portion of the overall expenditure. Most of this form of the grant will require the applicant to make a significant cash contribution to the total amount of required capital.
2. Repayable Grant
They give this type of grant to a business owner without charge. The entrepreneur is expected to repay the loan over time using future income generated by the business operation. In the case that the business fails or falls, however, the grant is not repaid.
3. Soft Loan
This is a type of grant that is organized similarly to a loan, with the exception that the interest may be negligible or non-existent. The repayment schedules are very loose and spread out over a long length of time. There are a lot of small business soft loans online.
4. Equity Grant
Here, you find that some resources are injected into the business as part of this award. This permits the grant provider to become a shareholder in the company.
4 Pros of Taking Small Business Grants in Nigeria
There are quite a number of pros when it comes to accessing small business grants in Nigeria, here are a number of such:
- Getting a grant implies you’ve finally secured the funds you needed to start or complete your long-awaited business development. And, in most cases, you will not be required to repay the funds, allowing you to expand your company’s financial base. Even if you have to repay the grant, the payback terms are fair, easygoing, and business-friendly, so you and your company will not be put under undue stress.
- No control sharing: Unlike the demands of equity funding, you as an entrepreneur will not be required to give up your right to equity or compromise your existing goals with shareholders.
- Brand respect: By obtaining one business grant, your brand establishes a positive image–the fact that the grant provider regarded your company grant-worthy speaks volumes about the quality of your company and the long-term viability and sustainability of your business structure. This will give your company greater credibility in the eyes of investors and financial organizations if you need to contact them for additional financing.
- More grants: Because of the reasons outlined in the preceding paragraph, it becomes much easier to gain another grant once you have won one. Even yet, this is the case since you are familiar with the process and have developed a strong relationship with the grant provider.
6 Cons of Small Business Grant in Nigeria
Aside the pros of accessing small business grants in Nigeria, here are a number of Cons you can find:
- Grant contests are fierce and difficult due to the enormous number of persons applying for grants. As a result, you must be prepared to comply with and overcome the tough criteria used by grant providers to select only a few qualified enterprises.
- Partially funded: Grants sources are unlikely to offer you the entire amount of funds you require. Many business grant sources will need you to secure funds equal to a percentage of the total amount required. While the percentage varies by the supplier, it is not uncommon to be requested to come up with half of the award. As a result, you will need to get additional funds before or after receiving the grant.
- The specificity requirement: Many grant funders ask that you use the funds supplied solely for a specific aspect of your company plan that they intend to cover, as described in your business plan. For example, if they offer to help you get operating equipment, you will not be able to utilize that money for anything else in your firm.
- Some grant providers will purposefully postpone the transfer of funds until you have successfully completed the project of beginning or expanding your firm with finances from other sources, in order to ensure that the grant is used for exactly what it was intended for.
- Long application process: The usual grant application takes anywhere from a few days to many months to complete.
- Less flexibility: as previously showed, cash received from the grant must be used for the specific reason stated in the grant application or business plan. Failure to do so may cause the grant being revoked.
How to apply for world bank grants in Nigeria for Small Business
We cannot talk about World Bank Grants for small business in Nigeria without talking about its process of application;
It has to be noted that the more reliable the source of the grant, the more incessive the competition, as well as the more rigid it gets to access it. Therefore, it becomes much easier to win a business grant which is awarded by a local NGO than it is to win one awarded by the Federal Government grant or even one which is established by an international establishment.
You ought to study the requirements and eligibility criteria of the grant you want to apply for so as to know if your business meets the qualifications required before you receive it.
Here, however, are a few steps you can follow to apply for the Word Bank grants in Nigeria:
- It is important to first learn about the funding; in order to learn more about the funding, go to the World Bank’s website or the National and Local so as to know how they operate.
- Make a thorough and convincing business plan. Be confident that the grant providers will thoroughly examine your business plan to assess whether or not your company is worthy of being sponsored by the award.
- Read and comprehend the guidelines that govern the grant application procedure. The quickest way to fail is for you to skip the application guidelines.
- Do your homework; talk to business owners who have previously received grants, and do well to collect all the information and guidance you can from them.
- Examine yourself and your company critically to see if you are eligible for the grant you wish to apply for.
- Start working on your grant application – ensuring it follows all the grant providers’ guidelines. Study and gather all the materials that will be required to complete the application.
- Examine your application closely for accuracy and maintain a duplicate of your responses in your personal records.
- After following all these processes, you can submit your application via the channel whilst you are on the side waiting for the grantors to respond.
Do Grants have to be Paid Back?
What is a grant, and do you have to pay it back?
A grant, in its broadest form, is money granted to a person, business, organization, or other entity for a defined purpose. A grant, unlike donations or loans, does not need a repayment.
Conclusion
It has to be stated that Nigerians have mostly ignored the World Bank’s interest in empowering Nigerian youngsters through grants. This could be because many people are unaware of such opportunities, and those who are aware do not put up the effort to be serious enough to receive a grant.
A piece of advice would be that grant seekers should continually put in a great effort, as well as keep attempting no matter how many setbacks they encounter because you will eventually receive the result you desire.
