Securing funding is often the toughest hurdle for Nigerian entrepreneurs, especially when starting or trying to scale. Fortunately, small business grants offer a lifeline, providing financial support without the burden of repayment.
Unlike loans, small business grants in Nigeria are awarded by government bodies, NGOs, and private sector organisations to empower entrepreneurs, promote innovation, and stimulate economic development. These grants are particularly geared towards youth, women, and startups creating impact in their communities.
With billions of naira available each year, initiatives like the Tony Elumelu Foundation and the Bank of Industry offer some of the best small business grants in Nigeria. In this article, we will walk you through the top opportunities and how to apply.
Ready to turn your business idea into a profitable venture? Join our Entrepreneurs Success Blueprint Program (ESBP), a step-by-step guide packed with expert strategies, practical insights, and proven tools to help you start, grow, and scale your business with confidence.
See Also: Top Business Grants in Nigeria 2025: The Ultimate Guide for Entrepreneurs
Key Takeaways
- The best small business grants provide non-repayable capital that can significantly ease the financial burden for startups and small enterprises.
- Accessing small business grants requires understanding strict eligibility criteria and navigating competitive application processes.
- The flexibility and credibility gained from receiving grants can open doors to further investment and strategic partnerships, strengthening the business’s market position.
- Researching and targeting the right small business grant programs aligned with your business is crucial for maximising funding opportunities and sustainable growth.
See also: How to Start a Business and Get a Loan: Your Comprehensive Guide
What Is A Business Grant?
A business grant is a financial award given to entrepreneurs or companies to support specific business activities, such as starting a new venture, expanding operations, investing in innovation, or driving social impact.
Unlike loans, business grants do not need to be repaid, making them an attractive source of funding for small businesses, especially those with limited access to traditional finance.
Grants are typically offered by government agencies, international bodies, NGOs, and private organisations. Each grant usually has a defined purpose and strict eligibility criteria, often targeting specific sectors, demographics like youth or women entrepreneurs, or business goals such as job creation or environmental sustainability.
While the funding is free, business grants are highly competitive and often require a well-prepared application, a compelling business plan, and detailed reporting on how the funds will be or were used.
In short, a business grant is a powerful tool for growth, but it demands planning, transparency, and accountability.
10 Best Small Business Grants For Small Businesses In Nigeria
For Nigerian entrepreneurs, access to funding is often the first major hurdle on the path to success. Thankfully, several grant opportunities, both local and international, are currently open to support business growth, especially for small and medium-sized enterprises (SMEs).
These grants do not require repayment, making them ideal for early-stage startups and small business owners seeking a financial boost without the burden of interest or collateral.
Here are some of the top ongoing small business grants in Nigeria, with details on what they offer and what you need to apply:
1. The Tony Elumelu Foundation Entrepreneurship Programme
One of the most well-known funding programmes across Africa, the TEF Entrepreneurship Programme, was established by Nigerian billionaire philanthropist Tony Elumelu. The initiative aims to empower 10,000 African entrepreneurs over 10 years with seed capital, training, and mentoring.
Each successful applicant receives a non-repayable seed capital grant of $5,000, after undergoing a comprehensive 12-week training programme that covers key business fundamentals. Entrepreneurs also benefit from ongoing mentorship and access to a pan-African network.
To qualify, you must be an African entrepreneur, either running an early-stage business or with a viable business idea. The business must be based in Africa and be profit-oriented. Applicants should also be prepared to complete the training and mentorship components of the programme.
Applications usually open in January and close by March each year. Entrepreneurs from all sectors are welcome to apply.
2. The Bank of Industry (BOI) Youth Entrepreneurship Support Programme
The Bank of Industry (BOI) has a huge Youth Entrepreneurship Support (YES) programme designed to tackle youth unemployment through business training and access to funding. The programme offers entrepreneurs access to loans of up to ₦10 million, at competitive interest rates and with a generous repayment period.
To qualify, you must be a Nigerian citizen between 18 and 35 years old, with a minimum educational qualification of an Ordinary National Diploma (OND). Applicants must undergo an intensive entrepreneurship training program and submit a viable business plan.
While YES offers loans, certain BOI programmes embedded in broader government initiatives provide non-repayable grants or blended financing.
The application is open year-round and can be done through the BOI website.
3. Lagos State Employment Trust Fund (LSETF)
LSETF was established by the Lagos State Government to provide financial support to residents of Lagos who want to start or grow their businesses. It offers loans and grants between ₦250,000 and ₦5 million, particularly targeting youth, women, and artisans.
To be eligible, you must be a resident of Lagos State and have a registered business operating within the state. LSETF also requires participants to complete basic entrepreneurship training and submit financial records or projections.
Though LSETF is known for its loan programmes, it occasionally disburses non-repayable grants to nano and micro-businesses, especially in partnership with development organisations or during economic interventions.
Applications are ongoing, and entrepreneurs are encouraged to check the website regularly for specific grant opportunities
4. YouWiN! Connect Nigeria
The YouWiN! Connect programme, initiated by the Federal Government of Nigeria, aims to promote entrepreneurship, job creation, and wealth generation by supporting youth-led businesses. Through various cycles, YouWiN! has funded thousands of startups across Nigeria.
Successful applicants can receive between ₦2 million and ₦10 million, based on the business’s viability and scale.
Applicants must be Nigerian citizens aged 18 to 45, and their businesses must either be in the ideation stage or have existed for less than three years. All applicants must submit a comprehensive business plan and participate in an intensive online and in-person training process.
Although not currently accepting applications, the next cycle is expected to launch in Q2 2025. It is one of Nigeria’s most competitive government-backed grants, so early preparation is key.
5. Flourish Africa Grant
Spearheaded by businesswoman and philanthropist Apostle Folorunso Alakija, the Flourish Africa Grant supports women-owned businesses in Nigeria. It is focused on empowering female entrepreneurs by combining funding with training and mentoring.
Each year, 500 women are selected to undergo intensive business training. After successful completion, 100 of them are awarded up to ₦2 million each to scale their businesses.
To qualify, applicants must be female entrepreneurs based in Nigeria, operating businesses that are either in ideation or growth stages. A minimum of 51% ownership by a Nigerian woman is required.
The grant is awarded annually, and applications typically open in the second quarter of the year.
6. She Leads Africa (SLA) Accelerator Grant
The She Leads Africa Accelerator is a six-month programme for high-growth female-led startups. In partnership with companies like Work in Progress! Alliance and Google, SLA provides mentorship, investment readiness training, and grants to selected businesses.
While the grant amounts vary, they often fall between ₦500,000 and ₦1.5 million, depending on the stage and industry of the business.
Eligibility is open to female-led businesses that have been operational for at least 6–12 months and have a clear path to scale. Applicants must commit to the full duration of the accelerator programme.
Applications usually open in Q1 each year, but entrepreneurs can sign up for SLA’s newsletters to stay updated.
7. ScaleUp Business Pitch Challenge (Bet9ja Foundation)
The ScaleUp Pitch Challenge, hosted by Bet9ja Foundation, is a relatively new entrant that supports SMEs looking to grow or expand. Selected businesses pitch to a panel of judges and can win between ₦3 million and ₦5 million in grants.
To apply, your business must be formally registered in Nigeria, have been operating for at least six months, and demonstrate growth potential.
This grant is designed for scalable businesses in various sectors, including tech, retail, fashion, and services. The competition is held annually, and the next cycle is expected later in the year.
8. Mastercard Foundation Agribusiness Fund
Targeted at SMEs in the agriculture and agri-tech space, the Mastercard Foundation Agribusiness Fund provides large-scale funding ranging from $500,000 to $2.5 million to catalyse innovation in food systems.
This fund is ideal for entrepreneurs developing climate-resilient agriculture solutions, digital farming tools, or youth-focused agribusiness ventures. In many cases, the fund is channelled through implementing partners or financial institutions.
To qualify, businesses must be registered and operational within Nigeria, with a strong social impact model, particularly targeting job creation for youth.
Applications are ongoing, but specific cohorts are released intermittently through Mastercard Foundation’s website and partners.
9. Presidential Conditional Grant Scheme (PCGS)
Under the Federal Government’s recent economic intervention programme, the Presidential Conditional Grant Scheme (PCGS) offers small grants to support nano-businesses, which are the smallest business units often operating in informal sectors.
Each eligible business may receive up to ₦50,000 in non-repayable grants to support business continuity and stabilisation. Sectors covered include petty trading, artisan services, food vendors, fashion, and more.
To be eligible, you must operate a nano business and provide verifiable personal and business identification. Applications are processed in partnership with local government councils and market associations across the country.
This grant is currently ongoing, and disbursement is happening in phases nationwide.
10. The Nigerian Export Promotion Council (NEPC) Export Development Grant
The Export Development Grant (EDG), administered by the Nigerian Export Promotion Council (NEPC), is a government-backed initiative aimed at supporting Nigerian exporters, especially small and medium-sized businesses, by reducing the cost burden of entering global markets.
This grant provides non-repayable financial incentives to businesses involved in non-oil exports, covering essential export-related expenses such as international certifications, logistics, packaging, and participation in global trade fairs.
To qualify, a business must be registered in Nigeria, hold a valid NEPC Exporter’s Certificate, and provide evidence of recent export activity, including shipping documents and proof of repatriated export proceeds.
Grants typically reimburse 5% to 15% of the value of documented exports, offering exporters a critical cushion to improve their global competitiveness.
The application process involves registering with NEPC, submitting export documentation, and providing a clear record of eligible expenditures.
For serious exporters looking to scale, the EDG is a practical, low-risk way to lower costs and expand reach.
See also: How To Grow a Business Successfully- Step-by-step
How to Qualify for Grants as a Small Business Owner in Nigeria
Getting a grant can make all the difference for your small business, offering much-needed funding without the burden of repayment.
But with many entrepreneurs competing for limited opportunities, standing out requires more than just a good idea. You need to be prepared, strategic, and aligned with the funder’s goals.
Below is a breakdown of what funders are looking for and how you can position your business to qualify for local and international grants.
Understand the Purpose of the Grant
Before applying, take time to research and understand the grant’s purpose. Is it designed to support women-owned businesses, promote innovation, or develop rural enterprises?
Matching your business goals with the funder’s objectives is crucial. Many applications fail simply because the business does not align with the grant’s target sector, demographic, or goals.
Always read the grant’s eligibility criteria and objectives thoroughly, and tailor your application accordingly.
Register and Structure Your Business Properly
Most grants require that your business be formally registered. That means having your CAC certificate, Tax Identification Number (TIN), and a corporate bank account. You may also need to present financial statements or proof of compliance with local laws.
Without formal registration, you are automatically disqualified from most serious funding opportunities.
However, do not let paperwork hold you back. We can help you handle your registration from start to finish with our Business Registration Service.
Have a Clear, Compelling Business Plan
A business plan is not just a document, it is proof that you understand your market, your numbers, and your vision. Grant providers want to fund entrepreneurs who are serious, structured, and prepared.
Your plan should explain what you do, who your customers are, how you make money, and where the funding will go. Most importantly, it should show how your business will grow and create impact.
If you are applying for funding, especially competitive grants like those from the Tony Elumelu Foundation or the Bank of Industry, a weak or vague business plan can easily get your application rejected.
And if you need help getting it right, save time and avoid costly mistakes with our Comprehensive Business Plan Template. It is expertly designed to meet funders’ expectations and guide you step-by-step.
Demonstrate Impact and Scalability
Grants, especially those from development institutions and NGOs, are often awarded to businesses that create impact, whether by providing jobs, solving a community problem, or contributing to sustainability.
Funders are also interested in scalability. They want to support businesses that have the potential to grow beyond their immediate environment.
Show clear metrics on how your business contributes to job creation, gender inclusion, youth empowerment, or climate resilience, depending on the funder’s focus.
Maintain Good Financial Records
Financial transparency is non-negotiable. Even if your business is small, funders want to see how you manage money.
You must be able to show cash flow statements, income and expenses, and possibly, audited reports, especially for high-ticket grants like the Mastercard Foundation Agribusiness Fund or BOI programmes.
Use simple accounting tools or hire a freelance accountant. It will make a significant difference.
Participate in Training and Accelerator Programmes
Many grants are tied to training programmes or business accelerators. For instance, to access the Tony Elumelu Foundation grant, you must complete a 12-week entrepreneurship training.
The She Leads Africa Accelerator combines mentorship, business development, and a final pitch competition that qualifies you for funding.
These programmes not only equip you with skills but also give you credibility in the eyes of future investors and grant providers. Do not ignore training opportunities as they often open the door to more funding and mentorship.
Tell a Strong, Authentic Story
Funders do not just invest in businesses, they invest in people. Your story is a powerful tool, and how you tell it can set you apart. Why did you start your business? What challenges have you overcome? What change are you trying to create in your community?
Grant reviewers read hundreds of applications, but a genuine, personal narrative can cut through the noise and leave a lasting impression. You do not have to be dramatic, just be real. Speak from the heart and show your passion.
Think of your story as your elevator pitch with soul: short, honest, and compelling. Focus on your “why,” and connect it to the impact you are making.
Apply Early and Follow Instructions Carefully
This might sound basic, but it is one of the top reasons applicants are disqualified: missing deadlines or failing to follow simple instructions. Some grants require supporting documents, specific file formats, or word count limits. Ignoring any of these details, even by accident, can get your application tossed aside.
Apply early, not at the last minute. It gives you time to review everything, correct errors, and avoid technical glitches. If the grant opens at 9:00 a.m. on Monday, do not wait until 8:59 a.m. on the deadline day.
Create a checklist. Double-check everything. Then check again. Precision shows professionalism, and funders notice that.
Leverage Networks, Mentors, and Alumni Communities
Sometimes, what you know needs to meet who you know. Being part of entrepreneurial communities can give you access to insider tips, past winners, and even direct referrals. Networks like the TEF alumni, She Leads Africa, or local business hubs are filled with people who’ve walked the same road.
Mentors can help you refine your application, polish your pitch, or help you understand what funders want, so do not be afraid to ask for help.
Also, stay active in forums, webinars, and grant-related workshops. Many funders run info sessions or grant clinics before closing dates, and by participating in these, you will often get valuable insight that is not in the official brief.
Why Choose Grants to Scale Your Business?
Grants offer something rare in business financing, which is capital you do not have to repay.
For small business owners, that can mean growing faster without taking on debt. If you are looking to expand, hire more staff, or reach new markets, a well-targeted grant can give your business the financial breathing room it needs to scale with confidence.
Below are reasons why pursuing the best small business grants should be a priority for business owners
Non-Repayable Capital Reduces Financial Burden
One of the biggest advantages of grants is that they are non-repayable. Unlike loans, you do not have to worry about interest rates, repayment schedules, or collateral.
This means you can channel the full amount into growing your business, upgrading equipment, hiring staff, or expanding your reach, without the pressure of servicing debt.
It is a smart way to scale without compromising your cash flow.
Encourages Innovation and Growth
Grants often support ideas that are bold, innovative, or high-impact projects that traditional lenders might consider too risky.
This gives entrepreneurs the freedom to experiment, develop new products, or enter new markets without the fear of financial loss.
With the right grant, you can take calculated risks that push your business forward and unlock new levels of growth.
Enhances Business Credibility and Visibility
Winning a grant does more than fund your business, it boosts your credibility. It signals to customers, investors, and partners that your business has been vetted and recognised as viable and impactful.
Many grant programmes also include publicity through press releases, alumni networks, or partner platforms, giving your brand increased visibility and opening doors to new opportunities.
Supports Access to Additional Resources and Networks
Many business grant programmes go beyond financial support; they connect you with valuable resources like training, mentorship, and business development services.
You also gain access to networks of fellow entrepreneurs, industry experts, and potential investors. These connections can lead to strategic partnerships, new markets, and ongoing support that continues long after the grant funds are spent.
Provides Flexibility in Use of Funds
Unlike some forms of financing that come with strict usage conditions, many grants allow you to allocate funds where they are needed most, whether that is marketing, product development, equipment, or staffing.
This flexibility empowers you to make decisions based on your business’s real-time needs, helping you scale in a way that is both strategic and sustainable.
See also: How to Identify Market Opportunities for Business Growth
Challenges of Securing Grants for Your Business
While grants offer incredible benefits, securing one is not always easy. The process can be competitive, time-consuming, and filled with paperwork.
Understanding the common challenges ahead of time can help you prepare better and improve your chances of success.
Highly Competitive Application Process
One of the most significant hurdles in securing the best small business grants is the intense competition. With many entrepreneurs vying for limited funds, the selection process becomes highly rigorous.
Grant providers receive numerous applications, many of which meet the basic criteria, making it crucial to stand out with a compelling proposal.
This competition means that even well-prepared applicants with viable business models may face rejection simply because of limited funding availability.
As a result, business owners must invest considerable time and effort in tailoring their applications to the specific objectives of each business grant program, demonstrating both innovation and feasibility to increase their chances.
Strict Eligibility Requirements
Some of the best small business grants typically come with stringent eligibility conditions that can exclude many businesses.
These requirements may relate to the size of the business, industry sector, geographic location, or the stage of development. Navigating these conditions can be complicated and frustrating for many entrepreneurs.
Failure to meet any one of these criteria often results in automatic disqualification, regardless of the quality of the business plan or financial need.
Lengthy and Complex Application Procedures
Many grant applications require detailed documentation like business plans, financial records, impact statements, and more.
The process can take weeks to complete and often involves multiple stages, from online forms to in-person interviews or pitch presentations.
For busy entrepreneurs, this can be overwhelming. However, taking the time to prepare thoroughly can significantly improve your chances and make future applications easier.
Delays in Funding Disbursement
Even after successfully securing grants, recipients often face delays before receiving the funds. Administrative procedures, verification processes, and budgetary approvals can prolong the disbursement timeline, impacting businesses that depend on timely capital injection.
These delays can be challenging for startups or small businesses with urgent financial needs.
It is important for grant applicants to factor in these potential setbacks when planning their cash flow and to explore supplementary financing options that can bridge funding gaps during waiting periods.
Restrictions on Use of Funds
Although business grants provide valuable capital, they often come with specific conditions regarding how the money can be used. Many grants restrict spending to particular areas such as research and development, equipment purchase, or workforce training.
This can limit business owners’ flexibility, especially if their most pressing needs fall outside the stipulated categories.
Entrepreneurs must carefully review these restrictions and ensure their business plans align with the grant’s terms. For some, this may mean pursuing other funding options that offer more autonomy in fund utilisation.
Alternative Financing Options for Your Small Business
Grants are not the only way to fund your business. If you are unable to secure one or need additional capital, there are several other financing options worth exploring.
Each comes with its benefits, risks, and requirements, so it is important to choose the one that aligns best with your goals and growth stage.
Below are alternative financing routes that many entrepreneurs can use effectively alongside or instead of grant funding.
Bank Loans and Overdraft Facilities
Traditional bank loans remain one of the most widely used small business financing options for entrepreneurs seeking reliable capital.
Unlike small business grants, bank loans require repayment with interest, but they often offer larger sums and longer repayment periods, which can be essential for scaling operations or funding significant capital expenditure.
To qualify for these loans, businesses typically need to demonstrate creditworthiness and provide detailed financial documentation.
Bank overdraft facilities, on the other hand, offer another form of short-term credit that can help manage cash flow fluctuations, giving business owners flexibility while they await payments or new revenue.
Although this option comes with financial obligations, its availability makes it a popular complement to grants.
Angel Investors and Venture Capital
For startups with high growth potential, angel investors and venture capital firms provide a crucial source of financing beyond small business grants.
These investors offer capital in exchange for equity or partial ownership, bringing not only funds but also expertise and networks that can accelerate business growth.
While equity financing dilutes ownership, it often comes without the immediate repayment pressures of loans.
See also: Debt Financing vs Equity Financing- How to Finance Your Business Without Cash Flow Problems
Microfinance Institutions
Microfinance institutions (MFIs) have become a vital small business financing option, particularly for entrepreneurs who may not qualify for conventional bank loans or small business grants. MFIs offer smaller loan amounts with more flexible terms, targeting micro and small enterprises, often in underserved or rural areas.
These loans support working capital needs, inventory purchases, and equipment acquisition, enabling businesses to grow incrementally.
While the interest rates might be higher than traditional loans, the accessibility and tailored support provided by MFIs make them an important financing alternative for many small business owners in Nigeria and beyond.
Trade Credit and Supplier Financing
Trade credit and supplier financing represent practical small business funding options that allow businesses to manage cash flow by purchasing inventory or raw materials on credit.
This form of financing does not involve direct cash but improves liquidity by deferring payments to suppliers.
Many suppliers are willing to extend credit terms to trusted customers, allowing entrepreneurs to maintain operations without immediate cash outflows.
While this option differs from business grants, it remains an essential tool for managing finances efficiently and supporting day-to-day business activities.
Crowdfunding Platforms
Crowdfunding has emerged as a popular small business financing option for startups and small businesses, enabling entrepreneurs to raise funds directly from their community or interested individuals worldwide.
Unlike grants, crowdfunding typically involves soliciting many small contributions that can collectively reach significant totals.
Platforms such as Kickstarter, Indiegogo, and local Nigerian crowdfunding sites allow entrepreneurs to present their business ideas and pre-sell products or offer rewards in exchange for financial support.
This method not only raises capital but also validates market interest and builds an early customer base, making it an appealing alternative to traditional grants.
Conclusion
Navigating the world of funding your small business can be daunting, but focusing on the best small business grants offers a powerful, debt-free way to fuel your growth. For every entrepreneur, especially startups, leveraging grants is a strategic move that can unlock new opportunities and elevate your business to the next level.
Take time to assess your business goals, research relevant small business grant programs, and prepare your applications with care. Ultimately, the key to unlocking grant funding lies in your readiness to present a clear vision, demonstrate impact, and align with the objectives of grant providers.
We want to see you succeed, and that’s why we provide valuable business resources to help you every step of the way.
- Join over 21,000 entrepreneurs by signing up for our newsletter and receiving valuable business insights.
- Register your business today with Entrepreneurs.ng’s Business Registration Services.
- Tell Your Brand Story on Entrepreneurs.ng, let’s showcase your brand to our global audience.
- Need help with your marketing strategy? Get a Comprehensive Marketing and Sales Plan here.
- Sign up for our Entrepreneurs Success Blueprint Programme to learn how to start and scale your business in just 30 days.
- Book our one-on-one consulting and speak to an expert about structuring and growing your business.
- Visit our shop for business plan templates and other valuable resources to guide you.
- Get our Employee-Employer Super Bundle NDA templates to legally protect your business and workforce.
- Advertise your business to over a million entrepreneurs through our different advertising packages.
FAQs About Best Small Business Grants To Fund Your Business
What are the best small business grants available for startups?
The best small business grants for startups vary by region and sector, but generally, they offer non-repayable funds to help with business growth and innovation.
How can I find the best small business grants?
Finding the best small business grants involves researching government programmes, private foundations, and industry-specific grants. Checking online databases and networking can uncover valuable grant programs.
Are grants the only small business funding options?
No, while the best small business grants are valuable, other small business financing options like loans, angel investors, and crowdfunding also play crucial roles in business funding.
Do business grants require repayment?
No. One of the main advantages of the best small business grants is that they are non-repayable, unlike many other small business funding options.
Can small business owners apply for multiple grants?
Yes, grants for small business owners can often be applied for simultaneously, but each grant has specific eligibility criteria and conditions to consider.
What challenges do businesses face when applying for grants?
Common challenges include high competition, strict eligibility, lengthy applications, funding delays, and spending restrictions, which are all typical of the best small business grants.
How important is a business plan for securing grants?
A comprehensive business plan is essential when applying for the best small business grants, as it demonstrates feasibility and aligns with grant objectives.
Are there grants specifically for Nigerian entrepreneurs?
Yes, Nigeria offers several small business grant programs aimed at supporting local startups and entrepreneurs with the best small business grants available domestically.
Can I use grant money for any business expense?
Most small business grants specify how funds can be used, often restricting spending to areas like equipment, training, or research.
How long does it take to receive grant funding?
The disbursement of the best small business grants can take weeks to months due to administrative procedures and verification processes.
Is it necessary to have a registered business to apply for grants?
Yes, most small business grants require applicants to have a legally registered business to meet eligibility standards.
Can grants help improve business credibility?
Receiving the best small business grants can enhance your business’s reputation and open doors to more opportunities.
