Startups in Nigeria often face a big hurdle: accessing sufficient funding without incurring heavy debt or diluting ownership. Grants offer one of the more attractive options because, unlike loans or venture capital, a grant typically does not need to be repaid, and often comes paired with training, mentorship or other forms of support. Here’s what you need to know.

What is a Startup Grant?

A grant is financial assistance provided by government agencies, foundations, NGOs, or private organizations to startups or small businesses. It is usually non-repayable, or at least partially so. The objective is to spur entrepreneurship, job creation, social innovation, or to address specific sectors (e.g. agriculture, tech, health, women empowerment, youth).

Key Providers of Startup Grants in Nigeria

There are a number of institutions (governmental and non-governmental) that offer grants. Some of the more prominent ones are:

Grant / Programme	Who Provides It	What is Offered / Focus
Tony Elumelu Foundation Entrepreneurship Programme (TEEP)	Tony Elumelu Foundation	~$5,000 seed capital, 12 weeks of business training, mentorship. easytophop.com.ng+3ProInvoice+3bizgrantsinfo.com+3
Bank of Industry (BOI) Youth Entrepreneurship Support (YES) Programme	Bank of Industry / Federal Government	Funding/soft financing for youth entrepreneurs (18-35), business training. easytophop.com.ng+3InvoiceApp+3ProInvoice+3
Lagos State Employment Trust Fund (LSETF)	Lagos State Government	Grants / support up to ~₦5 million depending on business stage; mentoring, capacity building. ProInvoice+1
Youth Empowerment Nigeria (YEN) – Micro Business / Petty Traders Grants	YEN (Federal level)	Small scale seed grants for petty traders or micro-businesses, amounts from ~₦10,000 up to ~₦2 million depending on the program category. youthempowermentnigeria.org+1
GET Compass Grant Program	Grooming Endowment Trust (private / NGO)	Grants up to ~₦2 million for SMEs less than three years old; business development training. fundsforcompanies.fundsforngos.org
YouWiN! Connect	Federal Government (or related)	Grants for young entrepreneurs with innovative business ideas; estimates in some cycles ~ ₦2-10 million. bizgrantsinfo.com+2personalfinance.ng+2
Nigeria Startup Act / Startup Label / National Funds	Federal Government via agencies like NITDA, National Council for Digital Innovation etc.	Provides structure, regulatory incentives, funding opportunities, labels or recognition for tech-enabled startups. startup.gov.ng+1

Eligibility Criteria & Common Requirements

While each grant differs, there are a number of common eligibility standards and application requirements. To be well-positioned, you should aim to meet:

1. Business Registration
   Most grants require that the startup is formally registered (CAC in Nigeria) or at least has some verifiable structure. Sometimes smaller grants or petty trader grants are more flexible. youthempowermentnigeria.org+2fundsforcompanies.fundsforngos.org+2
2. Age / Stage of Business
   Many grants target youth (18-35 or 18-40), or businesses that are early stage (e.g. less than 3 years old). ProInvoice+2bizgrantsinfo.com+2
3. Sector / Innovation
   Preference is often for tech-enabled, scalable, socially impactful, or innovation-driven businesses. Some grants target specific sectors like agriculture, health, digital, creative, etc. easytophop.com.ng+2fundsforcompanies.fundsforngos.org+2
4. Business Plan / Proposal
   You’ll usually need a detailed business plan or proposal showing what your business does, how you intend to use the funds, projections, revenue model, how many people you’ll employ, etc. entrepreneurs.ng+2internplug.com+2
5. Financials / Bank Account / Identity Documentation
   Valid ID, proof of address, bank account (often BVN linked), sometimes audited or at least credible financial records. youthempowermentnigeria.org+2fundsforcompanies.fundsforngos.org+2
6. Commitment / Capacity
   Evidence that the business is a going concern, or that the entrepreneur has capacity (skills, team, operations) to execute. Some grants also include mentorship or monitoring. fundsforcompanies.fundsforngos.org+2easytophop.com.ng+2

How to Apply / How to Increase Chances of Success

Winning a grant is competitive. Here are steps and tips to improve your odds:

1. Track Grant Opportunities Regularly
   Grants open/close at different times. Some government grants are periodic (e.g. yearly). Stay updated via government portals (e.g. BOI, NYIF, NITDA), startup ecosystem sites, incubators, newsletters.
2. Prepare a Strong Business Plan / Proposal
   Include clear problem-statement, solution, market size, competitive advantage, revenue model, cost structure, team, milestones. Be realistic in your financials.
3. Align with Grant Objectives
   If a grant is for “innovation in agriculture,” make sure your idea is directly relevant. If it asks for youth entrepreneurs, ensure you meet the age requirement. If it wants tech-enabled solutions, emphasize that angle.
4. Show Social / Economic Impact
   Many grants favour projects that can create jobs, benefit communities, or address a particular social or economic challenge. Quantify impact where possible (e.g., numbers of jobs, people served, environmental benefit, etc.).
5. Documentation & Compliance
   Get your CAC certificate, valid ID, Bank verification number (BVN), statement of account, proof of operations etc ready. Missing documents are a common reason for rejection.
6. Mentorship / Partnerships
   If you can, apply through or with the support of an incubator, accelerator, or mentor. This not only adds credibility but often helps you refine the application. Some programmes will favour startups that are part of recognized hubs.
7. Clear Use of Funds
   Be explicit in how you will use the grant money: e.g. product development, marketing, staff, equipment. Itemize costs.
8. Follow Instructions & Deadlines Closely
   Application requirements are strict. Deadlines, formats, supporting documents, word limits, etc. Missing any could disqualify you.

Challenges & Limitations to Be Aware Of

While grants are attractive, they come with their own set of challenges:

• High Competition: Many applicants, limited number of slots. Even good ideas may not be funded.
• Small Amounts for Some Grants: Petty trader or micro-business grants are often small; may cover only a part of what you need.
• Strings Attached: Some grants require you to partner with certain incubators, or track certain metrics, or give reports. There might also be delays in disbursement.
• Sustainability: Grants are good for early stage or experimentation. But for scaling, you’ll likely need revenue, investment, or other funding.
• Awareness and Accessibility: Many entrepreneurs, especially outside major cities, don’t know about these opportunities or lack access to application resources or mentorship.

Some Notable Grant / Funding Opportunities (2025 & Ongoing)

Here are a few specific grant opportunities currently known in Nigeria (subject to change; check current status):

• Tony Elumelu Foundation (TEF) — $5,000 seed grant + training & mentorship. ProInvoice+2bizgrantsinfo.com+2
• Youth Empowerment Nigeria (YEN) Micro Business Grant — seed capital between ₦10,000 to ₦2,000,000 depending on category. youthempowermentnigeria.org
• Lagos State Employment Trust Fund (LSETF) — support up to about ₦5 million depending on your stage and business. ProInvoice+1
• GET Compass Grant — up to ₦2 million for SMEs under 3 years old, business development support included. fundsforcompanies.fundsforngos.org
• YouWiN! Connect — grants in the low millions of Naira, for young entrepreneurs with innovation. bizgrantsinfo.com+1

Government Policies & Enablers

• Nigeria Startup Act: Passed in 2022, this aims to provide a regulatory framework, incentives, and label (“Startup Label”) for tech-enabled businesses. The Act includes provisions for innovation grants, tax incentives, protection of intellectual property, etc. startup.gov.ng+1
• National Council for Digital Innovation and Entrepreneurship: Part of the institutional framework under the Startup Act. startup.gov.ng+1

What to Do First: A Step-by-Step for Aspiring Recipients

1. Clarify Your Startup’s State & Vision
   • How long it has existed.
   • What you want to achieve (growth, impact, revenue etc.).
   • What sector you are in, and whether it aligns with grant priorities (e.g. tech, agriculture, health, creative etc.).
2. Get Your Basics in Order
   • Register your business (CAC).
   • Get IDs, tax identification, bank account, address proof.
   • If applicable, develop a minimum viable product (MVP) or proof of concept.
3. Research Grants
   • Use online resources: government portals (BOI, NYIF, NITDA), NGO websites, startup ecosystem newsletters.
   • Identify grants you are eligible for.
4. Prepare Your Proposal
   • Business plan, financial projections.
   • Impact metrics.
   • Clear budget for how the grant money will be used.
5. Submit Application
   • Follow instructions exactly.
   • Meet deadlines.
   • Provide all required documents and information.
6. Follow Up & Engage
   • After applying: monitor announcements, emails.
   • Be ready to answer questions or provide more info.
   • Network and build your profile—sometimes visibility helps.
7. Use The Grant Well & Report
   • Use funds as promised.
   • Keep track of outcomes.
   • Deliver reports if required; good performance can make you eligible for further funding or open doors.

Looking Ahead: Trends & Opportunities

• More Tech-Enabled / Digital Solutions are favoured: agritech, healthtech, fintech, cleantech etc.
• Social Impact is increasingly important (jobs, gender equity, climate, inclusion).
• Local & State-Level Grants rising: Lagos State, other states may have their own support funds.
• Public-Private Partnerships: NGOs, foundations, donors pairing with government.
• Startup Label and Regulatory Incentives under the Nigeria Startup Act are meant to improve access, reduce friction.

Conclusion

Startup grants are a powerful lever for early-stage Nigerian entrepreneurs to get funding without incurring debt or giving up ownership. But grants are not magic: they require preparation, alignment, and disciplined execution.

If you’re starting a business (or already running one) and are thinking of applying for grants, begin by assessing if your business matches what the grantor is looking for. Make sure your documents and business plan are solid. And always stay vigilant about deadlines and authenticity (watch out for scams).