Business Grants for Entrepreneurs in Nigeria
Business Grants for Entrepreneurs in Nigeria
It is not an easy task to secure funds to kick start a business. The true but harsh reality is that if you don’t secure the needed funds, your entrepreneurial ambition will not happen.
How then do you raise funds to support your dream?
You can take a business loan, go for equity financing, borrow from friends and family, or use your savings (which is usually not enough for young entrepreneurs). These are some ways people raise capital to get their business started, but I know one more way: easier and better, Grant!
Business grants are funding given by wealthy individuals, government, or large organizations to entrepreneurs to start and support their business without committing to pay back. The key point here is that you do not have to pay back as grants are often regarded as a gift.
Grants, which might come once or twice a year, are not as readily available as loans you can get from a bank any day. What business grants lack in frequency makes up for it in numbers. There are a lot of business grans you can get in Nigeria. The best of those grants are mentioned below.
- Tony Elemelu Entrepreneurship Program:
Tony Elemelu, the business tycoon, chairman of Heirs Holdings, and United Bank for Africa, launched this program in 2015 under Tony Elemelu Foundation. The program supports 1000 entrepreneurs across Africa with a grant of $5000 as seed funding.
Application for the program opens on the first day of January and runs till March of the same year. To access this grant, you must be a legal resident of any African country and have a business (which is not more than three years old or a business idea) and rights to work in the African country you are applying from. Another perk that comes with the grant is mentorship. You not only get funds to start your business, but you also gain access to invaluable experts you can turn to for help in times of need.
Do you need a grant for your business?
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- National Youth Entrepreneurship Empowerment Summit:
Through the office of the secretary to the federation, the Nigerian federal government launched this program as one of the events for the democracy day celebration held in May 2019. The grants are given to thousands of young Nigerian entrepreneurs who qualify for ten outstanding startups, a sum of 1 million nairas each as the prize money.
You have to be between 18 and 25, starting a business in Nigeria to be eligible for the grant. Your business idea should align with one of the federal government’s priority areas such as Fashion and Design, ICT, Art and Culture, Theater and Dance, Film and Entertainment, News Media, Hands and Craft, and Architecture. The application is by uploading and tagging a 1-minute video about your business idea.
Do you need a grant for your business?
Check this:
- Growth and Employment (GEM) project:
This program is set up by the Ministry of Industry, Trade, and Investment with the backing of the World Bank. The program targets small and medium-sized enterprises in the Hospitality and Tourism, Entertainment, Construction and Real Estate, Wholesale and Retail, and ICT sector.
Your business must align with the sectors stated above with not more than 50 permanent employees. You can be a sole trader, in a partnership, or a private company operating and residing in Nigeria. You can still be eligible even if your business is not registered yet. You only have to show evidence of registration when you are applying. The grant is between $50,000 and $250,000.
- I-startup Southwest Program:
This is a two-week incubation program set up by the ministry of humanitarian affairs. This program aims to provide funds for startups and help beneficiaries build sustainable businesses. The program includes mentorship and training by qualified professionals from relevant fields. The programs also feature business advisory services, pitches to investors, access to professional networks, and equity funding.
Your startup idea must be in the ICT, manufacturing, governance, health, or agricultural sector. You must reside and have your business in any of the states in the southwest region of Nigeria, namely Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti, to be eligible for the grant. Successful candidate gets 2 million nairas for their startup.
READ ALSO: FUNDING OPPORTUNITIES FOR NGOs
Business Grants for Entrepreneurs in Nigeria
- Africa’s Young Entrepreneur Empowerment Nigeria:
This program is set up for one reason: to empower youths across Nigeria. The empowerment offers guidance, mentorship, and the provision of funds for bright business ideas. The grants are for small businesses in all sectors of the economy. The grant given to the winner depends on the type of business and the feasibility of the business as deemed fit by the panelist. This could be a hundred thousand nairas to a couple of million nairas. You have to be at least 18 years old, reside in Nigeria, have a business idea, or run a business in Nigeria.
- Lagos State Entrepreneurs Trust Fund:
The Lagos state government set this program up under the leadership of Governor Akinwunmi Ambode to provide financial support for Lagos residents for wealth creation, job, and bring down unemployment. It is geared towards skills acquisition and growing micro, small and medium enterprises. The trust fund has the fiat to directly invest 25 billion nairas to support 100,000 MSMEs. This will create about 300,000 direct jobs and about 600,000 indirect jobs.
You also have access to international grants for startups such as
- International Monetary Fund: IMF offers an average grant of $10,000.
- Africa Netpreneur Prize: This is set up by Jack Ma Foundation and it offers $1 million to be shared between ten outstanding entrepreneurs.
- The United States African Development Foundation: USADF offers grants of up to $250,000.
- African Women Development Fund: This program is geared towards empowering women. The organization must be led by a woman and have the majority of its staff being women.
- World Agriculture Prize: This is a grant given to individuals with impact in the agricultural sector. The prize is $100,000.
- African Food Prize: Akin to the World Agriculture Prize, the grant is for individuals in the agriculture sector, and the prize is $100,000.
There you have it, the various business grants for entrepreneurs in Nigeria.
What are you waiting for? Start applying for these grants!
Do you need a grant for your business?
Check this:
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