How To Apply For Business Grants In Nigeria: The Ultimate Guide

Every intending businessman and woman needs capital to bring their business idea to life. Business owners often require more more captital injected to their business to achieve their expansion plans.

Proper planning, focus, determination, and money are some of the integral element to achieving all set milestones in a business. One of the potential ways to fund a small business is through grants.

Getting the right information is essential when applying for grants.

Loan Vs.Grants

As a business owner seeking grant opportunities, learning how to apply for grants in Nigeria revolves around having firsthand information about the grant requirements, opening and closing date as well as knowing the best fitting grant for your business.

Every business owner should seek for grants as a more viable opportunity worth more pursuing rather than settling for loans, but today, you’ll find more entrepreneurs settling for loan after considering the processing time, and the overall funding process.

This can be attributed to the high level of corruption in Nigeria where we find thousands of Nigerians applying for a grant scheme and only a fraction are selected as beneficiaries.  I

n some cases, Nigerians will apply for grants and not receive a penny in the long run. An example of these types of grants is the NDE grant scheme.

There are other cases where the government expresses its desire to issue grants to businesses or individuals who are financially incapacitated, and there won’t be any means for the public to apply, yet the media gives a good remark about the beneficiaries.

An example of this is the N25k household relief funds announced in July 2023.

Getting the right information is essential when applying for grants. As a business owner seeking grant opportunities, it’s important to have the required documents, be informed about the opening and closing dates of grants, as well as know grants that fit your business.

This publication will cover all of these topics while critically describing how business owners can get the right funding they need through free money from either the government or NGOs.

What Is a Business Grant?

Grant is a source of finance that is usually issued out to selected beneficiaries. There are different types of grants namely; business grants, study grants, healthcare grants, housing grants, etc.

These grants have their specified target audience and are made available to the public by various NGOs and government agencies.  Beneficiaries of grant schemes receive a share of allocated funds projected by sponsors.

Examples of grant schemes in Nigeria are the presidential grant scheme, Federal Government loans and grant scheme, UNDP grant scheme, etc.

Business grants are a form of financial aid offered to business owners to act as a form of support.

In most cases, these supports are offered to low scale business owners in other to help alleviate poverty.

Examples of these types of grants are the Edo care grants where beneficiaries receive financial aid and technical equipment to help improve their business.

Required Documents To Apply For Grants In Nigeria

Every business grant sponsor requires a form of verification from the end of applicants in other to avoid double payments or any type of fraudulent actions.

Grant sponsors also want to ensure that the right individuals get the support they need so verification becomes paramount.

In Nigeria the following documents is what are required from every grant applicant;

• Contact Information:Every business grant applicant in Nigeria must be willing to provide a medium where grant sponsors can reach out to them for further information. Contact information such as phone number, and email also act as a way of identifying each applicant. It prevents people from submitting multiple entries. In addition, some grant sponsors may desire to perform a physical assessment of you and your business. Business owners may be required to provide proof of address such as a utility bill in other to ascertain business proximity.

 

• BVN: Most Nigerians are reluctant to input their bank verification number on any form of website. Although banks advise that BVN should be protected from the public, it is important information required to apply for business grants in Nigeria. Aside from aiding the verification process, it ensures business owners do not submit multiple entries when applying.

 

• NIN: NIN is a means of identifying all Nigerian citizens. Every Nigerian is expected to have their unique NIN number which can be used to process business grants.

 

• CAC:Business owners are encouraged to register their business with the corporate affairs body in Nigeria for them to pay taxes and also act as a means of identification of every business. In most cases, the government charges #19,999 only to register for CAC alongside other personal information such as business name, tagline, address, etc.

 

• SMEDAN: SMEDAN is another means of verification and it’s considered an alternative to CAC verification. Business owners who can’t afford the CAC fee can use the SMEDAN identification number as an alternative when registering for business grants. However, do note that using a SMEDAN number instead of a CAC number reduces your chance of being selected as a beneficiary. However, there have been cases where people get paid using their SMEDAN number to apply for grants instead of the CAC. An example of this can be cited in the Edo care grant; some applicants used the alternative means of business verification and received the complete grant package.

 

• Financial Statement:This is another way of verifying a business. Business owners must be willing to provide financial statements showing their debits and credit transactions. This gives grant sponsors insight into how the business owner utilizes their financial resources.

 

• Business Plan: A business plan outlines every vital information of a business. It includes but is not limited to company size, financial plans, mission, etc.

Other documents that may be required from grant sponsors include but are not limited to a voter’s card, license permit, international passport, proof of employment, tax return, etc.

 

How To Qualify For Business Grant In Nigeria

• Be informed: Applicants must stay informed through mass media, and blogs about all the relevant information needed to apply for business grants. Staying informed also helps business owners find grants within their city or neighborhood. Nigerians cannot apply for all grants and the right information lets business owners know the right that meets their age, and business criteria.

 

• Be Prepared: Business owners who desire to apply for grants must have important documents ready. Business owners must not wait until a grant opportunity pops up before they register for CAC, SMEDAN, or get a national means of identification. Preparation also includes getting your professional business plans, account statement, etc ready for assessment on demand.

 

• Be eligible: One of the reasons why business owners are encouraged to get the right information is to know the eligibility criteria of each grant scheme. In the absence of one or more specific documentation required, the application can be rejected. It is important to know the grant initiative’s target audience before submitting an application because most Nigerians just rush into applying without taking the time to examine if they qualify to apply. Check the official websites of the grants scheme initiative to check for the requirements.

 

• Apply early: Grant sponsors have to select hundreds or thousands out of the list of millions of submitted applications. Submitting your application early boosts your chance of being selected compared to people who submit late. Although some grant sponsors treat all grants with equity, it is advisable to submit early.

 

• Review your application: Before submitting your business grant application, ensure you review all inputted data or information.  This helps check for minor errors that can disqualify your business from receiving the required financial support.

 

• Follow-up: Some grant sponsors may require you to perform additional actions after submitting your application before payment settlement. For example, the presidential grant scheme required Nigerians to visit their nearest local government council for verification before they were awarded an N50k grant.Following up on the grant application also let you know the proposed date of disbursement, list of selected applicants, etc.

 

• Pitch Professionalism: Most business grant sponsors only consider application of business owners who expresses high level of professionalism with years of experience in the field. The purpose of this is to ensure that the finance disbursed is tailored to meet the business needs. You should be able to prove to grant sponsors that you are goal-oriented and explain how you aim to reach your desired level with the funds provided. Also talk about your success or accomplishment, hindering blocks, etc.

 

What Can Disqualify  Business Grant Application?

• Providing Incomplete Information: Submitting incomplete information when applying for business grants will only kill your chances of getting the proposed fund. It is important to cross-check your application and ensure your name and other information matches all inputted data. In addition, applicants must feel every void in the application form.

 

• Multiple entry: Some Nigerians usually submit multiple entries when applying for grants because they feel it will boost their chances or they will receive multiple payments. The truth is that submitting more than one entry is enough to disqualify you for the grant.

 

• False Information: Applying false information disqualifies you totally from receiving proposed grant funds. In advanced countries, people who provide false information when applying for grants are liable to face the wrath of the law.

 

Business Grant Opportunities in Nigeria

The business grant application process is simple, yet some people miss out on the opportunity to be selected as beneficiaries of different grant schemes. The following are grant opportunities available to business owners in Nigeria and how to apply for free money;

1. Tony Elumelu Entrepreneurship Programme (TEEP):

This grant scheme is backed by a non government parastatal and funded by popular billionaire Tony Elumelu. He is one the leading business pioneers in Africa but he’s not usually in the media like Otedola or Dangote but his wealth is on the level of these notable businessmen.

Every year, beneficiaries of this grant scheme receive up to $5,000 in their business account. The grant sponsor also makes provision for a 12-week mentorship program as well as other side attractions. The purpose of the Tony Elumelu grant scheme is not limited to providing financial aid to beneficiaries but also to fostering economic growth.

The grant scheme is highly competitive and only people who meet the following criteria will be selected from the pool of applicants;

• Banking and personal means of identification.
• Completion of the 12-week mentorship program.
• Have a business account.
• Reside in Africa.
• Applicant must be above 18.

 

2. Bank Of Industry (BOI):

The Bank of Industry has been empowering entrepreneurs in Nigeria, and there are support programs put in place powered by the BOI initiative. These grants are targeted at unemployed youths, entrepreneurs, and senior citizens. Aside from the monetary incentive, youths will be impacted by the skillset on how they can become successful entrepreneurs.

The Bank of Industry partners with the federal government of Nigeria in giving out free grants to Nigerians above age 18, and Nigerians stand a chance at receiving up to #100,000 for free.

To qualify for the Bank of Industry grant scheme, applicants must;

• Be above the age of 18
• Have a business plan
• Must possess an undergraduate degree (Minimum of OND).
• Complete the online application process.

 

3. MTN Y’ellopreneur:

This initiative is a partial loan and grant scheme offered to Nigerian women above the age of 18. The purpose of this initiative is to foster financial literacy among women while also providing requisite financial support for development purposes. Applicants must be business-oriented, and people in the ICT, agriculture industry are advised to apply.

Beneficiaries will receive up to N2 Million naira as a loan but are further entitled to receive N500,000 as a grant.

To apply applicants must be:

• A female above the age of 18
• Experience in business management.
• Have a business plan.

 

Other examples of business grants in Nigeria include:

• GroFin fund Grant
• Cascador Entrepreneurial and Leadership Initiative
• Mastercard Foundation Fund for Alumni Start-ups in Transition (FAST) program.
• AYEEN financial Grants
• SMEDAN Grant
• Youwin Connect Nigeria
• Innovation Prize for Africa, etc.

 

In conclusion business grants are free money issued to entrepreneurs or intending business owners in a bid to foster empowerment, enhance community development, etc  There are different types of grants schemes in Nigeria and knowing hot to apply for each of these grant scheme puts business one step away from being part of the beneficiaries.