We all agree that starting a business can be both fun and hard. One of the biggest problems for new businesses is finding money to get started. There are many ways to get funding, some grants, others loans. The benefits of business funding are far too numerous to not be considered as a way to raise business capital.
In this article, we have outlined 10 organizations that give business grants to Nigerian businesses.
Key Takeaways
- There are many ways to get money for a new business. One popular way is to sell part of your business in form of shares. But for some businesses, selling part of the company isn’t a good idea.
- Aspiring entrepreneurs in Lagos State, particularly those with innovative startups, have a valuable resource in the Lagos State Employment Trust Fund (LSETF).
10 Organizations that give Business Grants in Nigerians
There are several benefits of business grants in Nigeria that make them a necessary option for any new or existing business owner whether young or old, male or female. There is a funding that caters to your business need at any time. Check out the article we have written extensively on the several benefits of business funding for Nigerian businesses.
There are many ways to get money for a new business. One popular way is to sell part of your business in form of shares. This is called equity funding. But for some businesses, selling part of the company is not the best idea.
Later in this article, we have also provided some organisations that do not demand for equity as part of their funding requirements.
Organisational grants for businesses in Nigeria 2024
- Transforming Nigerian Youths Program
- Shell LiveWire Grant
- The Agribusiness Challenge Fund
- The Draper Richards Kaplan Foundation
- The Flourish Africa Grant
1. Transforming Nigerian Youths Program
The Transforming Nigerian Youths Program is now accepting applications. This program aims to help young people and women who own small businesses in Nigeria become successful entrepreneurs and managers. The training will bye delivered via EDC’s online learning platform and IVR (Interactive Voice Response) to enable all learners to take part in the lessons on the go wherever they are.
This program is brought to Nigeria by the Young Africa Works-Mastercard Foundation in partnership with the Enterprise Development Centre, Pan-Atlantic University. To apply go to their official website.
2. Shell LiveWIRE Grant
The Shell LiveWIRE is a youth enterprise development program that aims to enhance opportunities for young individuals to realize their potential by establishing and growing their own businesses. These enterprises contribute to a thriving economy and empower communities, fostering a sense of fulfillment among young people.
LiveWIRE Nigeria is a specific initiative within this program, supported by The Shell Petroleum Development Company of Nigeria Limited (SPDC).
If you meet the following criteria, you are encouraged to apply for the Shell LiveWIRE Grant:
- You must be between 18 and 35 years old and reside in the Niger Delta states.
- You should possess an innovative business idea that you aspire to develop and manage.
- You should have a strong desire to own and effectively manage a business.
- A University degree or Higher National Diploma (HND) in any discipline is required.
- Applicants must have completed the National Youth Service Corps (NYSC) program.
- You should not be currently engaged in paid employment.
3. The Agribusiness Challenge Fund
Agribusiness Challenge Fund seeks to offer direct financial support to address the cash flow barriers faced by SMEs looking to scale-up and, in turn, create and sustain employment opportunities for young women and men.
The goal of the fund is to help businesses grow and create good jobs for young people. The fund will give money to businesses that have new and good ideas that can create a lot of jobs. These businesses will get support to be successful.
The Mastercard Fund for Resilience and Prosperity (FRP) is powering this grant and will give grants of between $500,000 and $2,500,000 over three years to businesses that qualify. The amount of money depends on how developed the business is, how much it can grow, and its business plan. Businesses will also get help from FRP to improve their businesses over three years.
Deadline: 22 November 2024
To get information on the eligibility criteria for this grant, visit their official website.
4. The Draper Richards Kaplan Foundation Grants
The Draper Richards Kaplan Foundation aims to make a significant difference in people’s lives and the world through innovative approaches and groundbreaking technologies. Their focus is on finding exceptional leaders with scalable business models that can have a positive impact on the world. They are open to applications year-round and have an open selection process.
They offer three years of unrestricted funding (up to $300,000) to selected entrepreneurs and provide ongoing support by joining their boards of directors and working closely with them to build their organizations and scale their impact.
For profit-making organizations, they typically make program-related investments, starting with $150,000 and potentially investing another $150,000 based on their performance. If you want to learn more about their funding areas, selection process, visit their official grant website.
5. The Flourish Africa Grant
The Flourish Africa Grant for Female Entrepreneurs is a N1billion fund to support and promote African female-owned businesses over a 5-year period through training, coaching, mentoring, and funding. The programme will empower entrepreneurial activities of at least 2,500 female-owned enterprises through funding and structured training over a five-year period by providing cash and organized training.
Through the programme, a minimum of 500 female entrepreneurs would be educated each year, after which the top 100 achievers from the pool would be eligible for grants of up to N2 million each from a N200 million annual fund.
The Flourish Africa training curriculum has been tailored to educate and prepare female entrepreneurs in  the idea to incubation stages on their business journey thereby giving them wings to fly. It also gives female entrepreneurs an enabling platform for practical skill development, mentoring, and access to the marketplace.
5 Organizations that give non-equity funding to businesses in Nigeria
There are other ways to get money without selling part of your business. We have listed 5 organizations that give non-equity grants to Nigerian businesses.
- Tony Elumelu Foundation
- Lagos State Employment Trust Fund
- Bill and Melinda Gates Foundation
- Ford Foundation
- PBank of Industrys
Tony Elumelu Foundation
The Tony Elumelu Foundation helps young African entrepreneurs succeed. They offer a 12-week training program with mentoring and $5,000 for each chosen business. Since 2010, they’ve helped over 15,847 entrepreneurs in all 54 African countries.
TEF focuses on businesses with good ideas that can grow and have been running for less than 5 years. Some successful businesses that have been helped by TEF include CcHub, Chekkit, BudgIT, and Trove.
Lagos State Employment Trust Fund
Aspiring entrepreneurs in Lagos State, particularly those with innovative startups, have a valuable resource in the Lagos State Employment Trust Fund (LSETF). Through its Lagos Innovates initiative, LSETF acts as a launchpad for promising startups by providing access to four crucial elements:
- High-quality workspaces and infrastructure: This removes a major hurdle for young companies by offering them professional workspaces equipped with the necessary infrastructure to thrive.
- Training: Lagos Innovates recognizes the importance of skill development. Startups benefit from valuable training programs to hone their entrepreneurial acumen and navigate the complexities of running a business.
- Early-stage investment capital: Securing funding is often a major bottleneck for startups. Lagos Innovates addresses this by providing access to early-stage investment, a vital catalyst for growth.
- Fostering connections within the entrepreneurial ecosystem is crucial for success. Lagos Innovates fosters a sense of community by connecting startups with peers, allowing them to learn from each other’s experiences and forge valuable collaborations.
The success stories of Lagos Innovates speaks for it. Companies like GetEquity, Onehealthng.com, DataLeum, and Scholar X are just a few examples of startups that have benefited from the initiative’s comprehensive support system. As these examples illustrate, Lagos Innovates is a powerful platform for empowering entrepreneurs.
Bill and Melinda Gates Foundation
The Bill & Melinda Gates Foundation believes that everyone deserves a healthy and fulfilling life. They support programs in education, global health, and community giving. In 2022, they announced a program called “Investing in Innovation” to help 60 health technology companies in Africa.
Over two years, these companies will get grants and support to grow.They chose 30 companies in 2022 choose 30 more in 2023.
Ford Foundation
The Ford Foundation is a U.S. organization that helps people live better lives. They want to reduce poverty, make sure everyone is treated fairly, and help countries work together.The foundation helps people who are working to make the world a better place.
They focus on things like civic engagement, creativity, disability rights, work, international cooperation, gender equality, racial justice, missions, technology, and climate change.Some Nigerian businesses that have received money from the Ford Foundation are CcHub and BudgIT.
Bank of Industry (BOI)
The Bank of Industry, a government-owned financial institution, helps Nigerian businesses get loans. They offer different types of loans, including loans that don’t require you to sell part of your business, for startups and small businesses. These loans can be repaid over 1 to 5 years.
The Youth Entrepreneurship Support (YES) program helps young entrepreneurs aged 18 to 35 get up to N5 million in loans. The program includes 8 weeks of online training and 5 days of in-person training for those who qualify.
Conclusion
As we have seen, there are numerous organizations in Nigeria that offer business grants to support entrepreneurs and small businesses. These grants can provide vital funding to help businesses grow, innovate, and create jobs. While some grants require an equity stake, others offer equity-free funding.
It’s important for entrepreneurs to research and understand the specific requirements and benefits of each grant program to determine the best fit for their business. By leveraging these funding opportunities, Nigerian businesses can unlock their potential and contribute to the economic development of the country.
FAQs
Can I get fund for my business without selling a part of it?
Yes, there are equity-free funds availabile to Nigerian businesses, an example is the grants provided by Tony Elumelu foundation, and Bank of Industry.
References
- How To Get Free Funding for your Business
- Innovative Grants to Empower Entrepreneurs
