Does the absence of capital prevent you from actualizing your Nigerian business idea? Or, are you an already existing SME owner, and wishing to scale to new operations, hire additional staff, or even introduce a new product line, but find yourself cash flow constrained? If you do, I assure you you are not the only one. The availability of funding is consistently considered to be one of the top issues Nigerian business owners face.
While loans are an option, the high interest rates and the demands of collateral which most cannot afford is the unfortunate reality that looms over their heads. At this critical point, the business grant becomes a lifesaver.
A business grant is primarily classified as money that is won without payment obligations. The money is allocated to business people or legit companies to fulfill particular objectives.
Grants offer money that is not expected to be paid back by the recipient. Such money is ideally given by governments, developing or private organizations or even companies focusing on economic wellness and wanting to develop effective solutions to social issues.
To many, winning a grant could be the defining factor that drives your business from a struggling “new comer” to a well known, industry leader.
This guide covers 10 business grants that you are able to apply for to help you better position your finances for business expansion in 2025.
Recommended: How to Become a Coca-Cola Distributor in Nigeria: A Step-by-Step Guide to Requirements and Process
The Top 10 Available Business Grants in Nigeria for Expansion
After thorough research on grants that really pays in Nigeria, we are bringing you the list of active and recurring grant programs available to Nigerian entrepreneurs. We hope you will take advantage of this funding opportunities for your businesses.
1. The Tony Elumelu Foundation (TEF) Entrepreneurship Programme
Overview: Arguably the most famous grant initiative in Africa, the Tony Elumelu Foundation Entrepreneurship Programme is a decade-long, $100 million commitment to identify, train, mentor, and fund 10,000 young African entrepreneurs over ten years.
Who It’s For: Startups and early-stage businesses across all 54 African countries, operating in any sector.
Funding/Benefits:
- Non-refundable seed capital of $5,000.
- A 12-week business management training programme.
- Mentorship from experienced business leaders.
- Access to a network of over 1.5 million African entrepreneurs.
- Eligibility to compete for further funding.
How to Apply: Applications typically open on January 1st every year on the TEF Connect portal. The application process is highly competitive.
2. Bank of Industry (BOI) Youth Entrepreneurship Support (YES) Programme
Overview: The Bank of Industry (BOI) established the YES programme to address the worrisome phenomenon of youth unemployment by equipping young aspiring entrepreneurs with the skills and funding to build sustainable businesses.
Who It’s For: Nigerian citizens between 18 and 35 years with a minimum of Senior Secondary School Certificate Education.
Eligibility Criteria:
- Must be a registered business with the Corporate Affairs Commission (CAC).
- Must have a detailed and viable business plan.
- The business must operate within the targeted sector for the specific grant program.
- Must provide evidence of good financial standing and management.
Funding/Benefits:
- Capacity building in entrepreneurial skills.
- Technical skills training in selected sectors.
- Funding (both grants and loans) for the successful businesses that emerge from the training. The grant component can be significant for qualifying businesses.
How to Apply: Keep an eye on the BOI official website for announcements regarding new application cycles.
3.Mastercard Foundation Agribusiness Fund
Overview:
This fund supports SMEs in the agriculture and agribusiness sectors, focusing on sustainable practices and digital innovation.
Grant Details:
- Amount: Grants ranging from $500,000 to $2,500,000.
- Support: Assistance in scaling operations and implementing sustainable practices.
Eligibility:
- SMEs in agriculture, climate adaptation, or digital innovation.
- Registered businesses in Sub-Saharan Africa, including Nigeria.
Application Process:
Apply through the Mastercard Foundation website.
4. SMEDAN Conditional Grant Scheme (CGS)
Overview:
The CGS is a government initiative aimed at supporting micro enterprises at the Local Government Area (LGA) level.
Grant Details:
- Amount: ₦50,000 grant for employing one person.
- Purpose: To support workforce and equipment procurement.
Eligibility:
- Micro enterprises at the LGA level.
- Must employ at least one person.
Application Process:
Register your interest through the SMEDAN website
5. GET Compass Grant Program
Overview:
The GET Compass Grant Program supports small and medium-scale businesses with funding and business development workshops.
Grant Details:
- Amount: Up to ₦2,000,000.
- Support: Access to business workshops and capacity-building programs.
Eligibility:
- Businesses must be registered and operational in Nigeria.
- Must be willing to attend a 2-week workshop in Lagos.
Application Process:
Apply via the GET Compass grant website.
6. FATE Foundation Small Business Grants
Overview:
FATE Foundation offers grants to entrepreneurs to support their business growth and development.
Grant Details:
- Amount: ₦500,000 – ₦1,000,000.
- Support: Business development programs and mentorship.
Eligibility:
- Entrepreneurs with innovative business ideas.
- Must be registered businesses.
Application Process:
Visit the FATE Foundation website to apply.
7. Development Bank of Nigeria (DBN) Loans
Overview:
DBN provides loans and financial support to MSMEs across Nigeria to promote economic development.
Loan Details:
- Amount: Varies based on the business needs.
- Support: Loans and financial assistance.
Eligibility:
- Micro, small, and medium enterprises.
- Must meet specific criteria set by DBN.
Application Process:
Apply through the DBN website.
8. State-Specific SME Grants (e.g., Lagos State Employment Trust Fund (LSETF))
Overview: Many Nigerian states have their own initiatives to support SMEs within their jurisdiction. The LSETF is a stellar example, offering loans and grants to Lagos-based businesses.
Who It’s For: Businesses operating in Lagos State, with a focus on creating employment opportunities for residents.
Funding/Benefits:
- Low-interest loans are their primary product, but they often run grant programmes for specific demographics like women or youths.
- Amounts can be significant, often up to ₦5,000,000.
How to Apply: Visit the LSETF website or the website of your state’s Ministry of Wealth Creation or its equivalent to discover local opportunities.
9. The African Development Foundation (USADF) Off-Grid Energy Grant
Overview: The U.S. African Development Foundation (USADF) provides seed capital and technical support to early-stage enterprises that are 100% African-owned. They have a strong focus on off-grid energy solutions.
Who It’s For: African-owned and operated enterprises providing off-grid energy solutions that benefit underserved communities.
Funding/Benefits:
- Grant funding of up to $250,000.
- Intensive technical assistance and governance support.
How to Apply: Applications are accepted on a rolling basis. Details are available on the USADF website
10. Agriprenuership Grant by the Nigeria Agribusiness and Empowerment (NAE) Programme
Overview: This programme is designed to build the capacity of youth and women agripreneurs and provide them with grants to establish or expand their agribusinesses.
Who It’s For: Young Nigerians (18-35 years) and women involved in agribusiness—from production to processing, storage, and logistics.
Funding/Benefits:
- Intensive agribusiness training.
- Business grants to implement the business plans developed during the training. Grants can be substantial, often covering a significant portion of startup costs.
How to Apply: Follow development organizations and the Federal Ministry of Agriculture and Rural Development for announcements on new application windows.
Why You Should Seriously Consider Business Grants
- Non-Repayable: This is the most significant advantage. Money is yours without the burden of monthly repayment or debt.
- No Collateral Required: Grants are awarded based on the merit of the idea and business plan. Not on the physical assets that you can pledge.
- Credibility and Validation: Winning a competitive grant is a strong endorsement of your business concept and helps in attracting other investors, partners, and customers.
- Networking Opportunities: Some grant programs provide mentorship, training, and a valuable network of other entrepreneurs, industry professionals, and potential customers.
- Focus on Growth: Financial pressure is relieved and you can focus on executing the business plan and growing.
How to Increase Your Chances of Winning a Grant
- “Read all of the instructions carefully”: There is no question about this. Consider whether you are eligible for all the criteria before you waste time applying.
- Develop a Rock-Solid Business Plan: This is the first time your business plan is treated as the most important piece for your marketing strategy. Define your problem and know the solution with your market and financial projections. Make sure you also explain how you are going to use the grant.
- Organize all of the required documents in advance: Most of the time for a grant you will have to submit a CAC certificate, Tax ID, Valid ID, and a business bank account. Make sure you have all of this ready.
- Tell a Compelling Story:: People are the ones who award the grants. Try to align your company and its mission with that of the grantor. Describe how your achievement will help them in their objectives of job creation, community support, and innovation.
- “Apply, apply, apply”: Applying for grants is a numbers game. Do not feel disheartened by the word “no.” If there are any grants that you are qualified for, make sure to apply to them all. Each application is there to help you learn.
Conclusion: 10 Available Business Grants in Nigeria To Expand Your Business in 2025
The scenario for business grants in Nigeria is changing and growing. Though the competition is tough, the chance does exist. Be ready, bold, and businesslike. Each application is a pitch in its own right. Though business as usual means selling your ideas, on occasion it is necessary to plan and research these avenues, use the grant to fund business ideas, and take your Nigerian empire to the expected level you have planned.
Stop dreaming about the expansion. Start applying for the capital that will make it a reality.
References for Further Reading:
Grants for Small Business: 40+ Free Funding Options (2025)
Lagos State Employment Trust Fund (LSETF): https://lsetf.ng/
Opportunity Desk: https://opportunitydesk.org/ (A great aggregator for global opportunities, including many in Nigeria)
Grant Masterclass NG: https://grantmasterclass.ng/ (A Nigerian platform offering courses and resources
You may also like:
Free Paint Production Business Plan Nigeria – PDF & Word Download
Download Free Photography and Videography Business Plan in Nigeria (PDF & MS Word Format)
Free Events Management Business Plan Nigeria – PDF & Word Download
Maize Flour Processing Business Plan in Nigeria (Free PDF & Word)
Bakery Business Plan in Nigeria (Download Free PDF & MS Word Format)
