In Nigeria, MSMEs account for 86% of employment and contribute 50% of the nominal GDP. Being the backbone of the non-oil economy, they contribute significantly to job creation, innovation and economic growth in the services, manufacturing and services sectors.
During the global COVID-19 pandemic, Nigeria’s economy experienced a 1.8% contraction, reminiscent of the severe stagflation of 1983. This downturn led to an unemployment rate of approximately 30%. While only 13% of businesses chose to scale back operations, over 33% were planning to expand, and the majority had no intentions of improving their operations.
In 2022, a survey revealed that around 35% of businesses listed access to finance as their biggest challenge. It’s interesting to note that many micro, small, and medium-sized enterprises (MSMEs) often look for smaller loans—typically under 10 million naira. For micro and small businesses, these loans usually don’t exceed $2,000. This highlights the struggle many face when trying to secure the financial support they need to grow and sustain their operations.
In a survey conducted by the IFC, 47% of MSMEs were aware of government support initiatives, including funding opportunities. However, only 11% of these businesses had received any form of support.
Here are five organizations to watch for grant opportunities in 2025.
- The Tony Elemelu Foundation: Since its inception, the foundation has received over 10,000 applications, faithfully paying a funding fee of about $5000 and providing access to training to over 2.5 million young Africans in 54 countries.
- United States African Development Foundation: is an independent U.S. government agency established to invest in African grassroots enterprises and social entrepreneurs with a funding fee of about $250,000. They also are keen on capacity-building assistance and opportunities for businesses.
- Bank Of Industry: This organization provides funding ranging from 500,000 to 2 million naira to business ideas that successfully pass through their selection process. They’re genuinely committed to fostering growth and boosting the success rates of businesses in Nigeria. By supporting promising ventures, they aim to create a positive impact and contribute to the growth of the local economy, offering not just financial backing but also the resources and tools needed to help these businesses thrive.
- GeoFinFUND: Launched in 2015, this development finance institution is dedicated to supporting and promoting business growth across Africa and the Middle East. Operating in over eight African countries, they have committed around $500 million to fund small and medium-sized businesses in Nigeria.
- Nextali’s Next Entrepreneur: This organization is focused on providing not just funding, but a range of resources for businesses, SMEs, and start-ups. These resources are designed to meet the specific needs of your business, offering everything from business templates and market research to legal guides and strategic planning tools.
