Owning a business concept isn’t enough, you actually need the necessary cash to get your business off the ground, especially one that you won’t have to pay back. I will walk you through the list of Federal Government Grants and Loans in Nigeria you can apply for this year.
It’s no longer news that President Muhammadu Buhari’s government is trying tirelessly to revitalize the Nigerian economy following the devastating impact of the COVID-19 Pandemic last year on the revenue of SME owners in the nation through intervention Grants and Loans.
These Grants and Loans are solely for MSMEs, and the Federal Government has begun them. Thousands of people have already benefitted from them, with many more on the way.
Before we get started on the topic at hand, let’s clarify the difference between grants and loans.
Grants and Loans: What’s the Difference?
Most people confuse grants with loans, but we’re confident that the description below will help you distinguish between the two.
A grant is a non-returnable subsidy provided to an organization or an individual. It generally takes the form of money or assistance.
This means that a grant cannot be returned (a grant is a type of support); it is not like a loan that you must repay after a certain period of time, perhaps causing you to lose your property or other collateral.
A loan is a money lent to you that must be repaid, and it usually comes with an interest rate and collateral that the lender will keep if you do not repay it.
Grants and Loans from the FG to Apply for in 2022
1.CBN Creative Industry Financing Initiative
As part of attempts to stimulate employment creation in Nigeria, particularly among the youth, the CBN has launched a Creative Industry Financing Initiative (CIFI) in partnership with the Bankers’ Committee.
Furthermore, the Central Bank of Nigeria has partnered with the Banker’s Committee to develop the Creative Industry Financing Initiative (CIFI), which aims to provide access to low-cost, long-term capital for creative/IT enterprises.
Although not a grant, the program has one of the lowest interest rates in the country, at 9%. It is also accessible to young people with business ideas in the fields of fashion, technology, movies, and music.
For more details on how to apply – click here.
2. Loan from the NYIF
Nigerian youths between the ages of 18 and 35 are eligible to apply for the NYIF.
Nigerian youths interested in applying for the NYIF program do not need to have a registered or existing company to do so through the nyif.nmfb.com.ng webpage.
More information on the NYIF loan can be found here.
3. Lagos State MSME Recovery Fund 2.0
The Lagos State MSME Recovery Fund (LSETF) 2.0 is a financial initiative that is completely funded by the Lagos State Employment Trust Fund (LSETF) and is aimed to assist MSMEs in Lagos recover from the consequences of the Covid-19 epidemic.
The LSETF promotes entrepreneurship through improving access to financing, building MSMEs’ institutional capacity, and proposing policies to improve Lagos State’s business climate. It will also include training and job placement initiatives for jobless Lagos residents, as well as programs to stimulate innovation in the Lagos ecosystem.
The Lagos State Government will provide the majority of the funds for the initiative, which is expected to cost up to N25 billion over four years, but it will also seek extra funding from other sources including donor partners, development agencies, corporate organizations, and individuals.
For more details on how to apply – click here.
4. Government Enterprise and Empowerment Program (GEEP)
The Government Enterprise and Empowerment Programme (GEEP) is a deliberate effort by Nigeria’s Federal Government, through the Bank of Industry, to break a multi-decade curse of economic progress without sharing the wealth.
It is a Nigerian government program to give financial inclusion and microcredit access to Nigerians at the bottom of the economic pyramid.
For more details on how to apply – click here.
You can also apply using the USSD code that the Federal Ministry of Humanitarian Affairs, Disaster Management, and Social Development just introduced, known as GEEP 2.0.
How can I sign up for GEEP 2.0?
- Dial *4255*21# from your phone.
- Create a six-digit withdrawal pin.
- Type in your business name, such as Shelaf World of Technology
- Describe your business/trade, such as Technology, Blogging, or cassava processing, tailoring, rice, maize, and so on.
- Complete all of the USSD code questions and submit your answers.
When the registration is completed successfully, a pop-up notice will appear.
Please be aware that error messages may appear at random intervals owing to network difficulties caused by a high number of Nigerians attempting to use the USSD code. Applicants are encouraged to keep trying.
5. National Institute of Food and Agriculture (NIFA) Grants
The USDA oversees NIFA, which is a federally controlled organization (United States Department of Agriculture). This grant, on the other hand, is aimed towards charitable groups, larger corporations, and agricultural leadership.
Furthermore, the organization distributes federal funds to address national agriculture-related challenges. NIFA also rotates funding throughout the year to encourage healthy competition in the agriculture industry.
For more details on how to apply – click here.
6. GroFin Fund
GroFin is an impact-driven, specialty financier. We assist entrepreneurs in becoming successful by giving professional advice, ongoing mentoring, and funding to help them expand their enterprises.
They realize that for SMEs to prosper, they require more than just money. And that the most potent engine of social and economic development that actually improves people’s lives is the growth of small enterprises to create long-term jobs.
For more details on how to apply – click here.
Anyone best matches you, make sure you apply for it. Let us know what you think by leaving a comment.
