Are you a Nigerian? Do you have any business, small or medium? By reading this post, you can be on your way to winning up to 10 million Naira from the World Bank Grant issued to Nigerians.
World Bank Grant Stance:
The World Bank has taken a stance to promote the Nigerian economy through the Nigerian banking sector as it seeks to empower small and medium (SMEs) businesses via the micro-finance banking system.
The World Bank, a member of the World Bank Group (WGB) which offers the world bank grant is an international finance body; a monetary international financer organization capable of providing funds to countries for capital intense and meaningful projects.
Having received tons of requests from our readers who are constantly seeking business funding, we decided to put up an article to address this request. Therefore, this post will detail on a full explanation of how to apply for the world bank grant designed for small and medium-sized enterprises (SMEs) in Nigeria 2021 edition.
The world Bank is made up of two institutions: The International Bank for reconstruction and development (IBRD) onboarding 189 countries as members and the International Development Association (IDA) with 173 membered countries.
Aim of World Bank Grant and Support In Nigeria.
The goal of the World Bank is to extensively reduce the level of global poverty.
The World Bank since the year 1958 has been aiding the Nigerian government in their fight to alleviate poverty and enhance a better living condition for her populace within the African countries with well over 130 IBRD loans.
Being a strong ally to the Nigerian government, the WBG has supported the Nigeria government in the following areas of priorities:
- Creation and sustaining of growth in the diversification of jobs especially for young people, poor people, and women in the side-lined area.
- Re-establishing macroeconomics and financial growth by fine-tuned policy sponsoring and performance responsive lending.
- Investing in and promoting growth and reforms towards non-oil growth and economic viability.
- Tackling the issues of climate change
- Restoring order in the conflict-affected zones of north-east Nigeria.
- Advocating for governmental and cultural commitment to gender equity
- Optimization of the quality of social service.
The World Bank has been consistent in empowering the Nigerian economy through her efforts in her banking sector. In the banking sector, she hopes to invest in grass-roots businesses through the model microfinance banking system fostered by the world bank grant series.
The bottom-up project as it is called will encompass the push of over 10 billion Naira in the form of grants to help startup model microfinance banks that will in turn sequentially, give power to billions of local businesses to kick off and grow courtesy of the World Bank.
World Bank Grant for SMEs In Nigeria
SMEs is the short for small and medium-scale enterprises. The world Bank identifies this sub-group as one of the most important drivers of the economy of any economically viable nation and have designed some grant packages for the sustenance of this economic drivers in Nigeria. This packages are tied under the small business grant which encompasses direct grant, repayable grants, soft loans, equity grants etc.
What is a Small Business Grant?
A small business grant is the degree of funding made available to an entrepreneur to start a new business or to expand an existing one. Unlike loans which must be repaid by the obtainer, not all grants are required to be paid back by the financier. Usually, small business grants come from various sources like government-sponsored organizations, international organizations, and non-governmental organizations
Types of Small Business Grants in Nigeria
Small business grants (SBG) are available for SMEs in Nigeria. The following SBGs are available for your business application in Nigeria, courtney, world bank grant:
This is a cash award, given as part of the start-up capital or expansion budget for a business. The cash award makes up part of the total cost.
To be eligible for this type of grant, it is require that the applicant himself/herself have a substantial cash investment in the overall total of the required capital.
This kind of grant is offered without interest to a business owner. It is expected that the entrepreneur pays back over a period of time from future revenues gained from the business operation. However, in the eventuality that the business fails or collapses, the repayment of the grant is scrapped out.
This is a form of a grant that is structured like a loan, the difference is that the interest may be very minute or non-existent. The repayment plans are way relaxed and spread lightly over a large period of time.
In this type of grant, some resources are inserted into the business. This allows the supplier of the grant to take an equity share in the enterprise.
Why You Should Consider Taking Small Business Grants in Nigeria
1. Business Security:
Securing a Grant means that you have eventually gotten the capital that you needed to have started or executed the long-awaited expansion of your business.
Most of the time you will not have to repay the money, further building the capital base of your business and enhancing your business financial security. And even if you have to pay back the grant, the repayment settings are very friendly, relaxed, and business-friendly such that it won’t place any heavy pressure on you or your business.
2. No Sharing of Control:
Unlike what is obtainable with equity financing where you may be required to relinquish some portion of your business share for a stipulated amount of grant, you as an entrepreneur will not have to relinquish your right to equity or have to compromise your established plans with shareholders when you take a small business grant from world bank.
3. Brand Standout:
By obtaining a business grant, your brand attracts to itself a good impression – that is, the fact that the grant provider deemed your business to be grant-worthy speaks volumes about the quality of your business and the sustainability and viability of your business structure.
This will give more credibility to your business before investors and financial institutions in case there is a need to further approach them for loans.
4. More Grants:
It makes a lot of sense to come to terms with the fact that the ability to win one grant will definitely make it easier for you to access more grants. Because of the reasons already stated in the previous paragraph, it becomes very much easier to secure another one.
This is, even so, the case since you have become familiar with the process and have built a firm relationship with the provider of the grant.
The Downside of Taking Small Business Grants in Nigeria.
1. Ultimate Competition:
Due to the large number of people applying for grants, competitions for grants are very fierce and demanding. As a result, you must be ready to conform and beat the stringent measures that grant providers adopt to choose only a few deserving businesses. In general, it may be stressful and tasking.
2. Partial Funding:
Grants providers will hardly give you the total amount of capital that you need to fully run your business. Many of the business grant providers will expect you to secure cash equivalent to a percentage of the overall needed capital.
While the percentage varies from provider to provider, most of them will expect that you come up with up to 50% of the grant fund. Thus, you will have to get funding from other sources shortly before or after you get the grant. This may be difficult to complete.
3. The Specificity Limitation and High Level Scrutiny:
As specified in your business plan, many of the grant providers require that you use the funds provided strictly for a specific part of your business plan that they intend to cover. For example, in the case where they seek to help you acquire working equipment, you will not be permitted to use that fund for any other thing in your business.
They may as well check your business from time to time to ensure that funds are utilized as stipulated.
4. Funds Disbursement Delay:
In order to ensure that the grant would be used exactly for what purpose it was intended, some grant providers will intentionally delay the grant funding release process until you have successfully accomplished the project of either starting or expanding your business with funds from other sources.
5. Lengthy Application Process:
The average application for a grant takes time ranging from a few days to sometimes months to finish the application
6. Less Flexibility:
As earlier stated above, funds gotten from the grant must be used for exactly the purpose in the exact same way as purposed in the grant application or business plan. Failure to comply with this may lead to the loss of the grant.
How to Apply For the 2021 World Bank Grant in Nigeria.
Please note that the more reliable the source of the grant, the tougher the competition, and the more difficult it would be to access it.
Therefore, it is much easier to win a business grant awarded by a local NGO than it is to win one awarded by the Federal government grant or even one that is established by an international organization.
It is advisable that you should as well study the requirements and eligibility criteria of the grant you seek to apply for to know if your business is qualified to receive it.
However, here are few tips on how to apply for the 2021 Word Bank grants in Nigeria.
- Refer to the website of the World Bank or the National and Local bodies they operate through to get the specifics of the grant that you seek. World bank website
- Write a proper and compelling business plan. Be assured that the grant providers will meticulously look into your business plan to determine the worthiness of your business to be supported with the grant.
- Thoroughly read and understand the specifics guiding the grant application process. Failure to complying with application guidelines is the shortest route to lose the grant.
- Do your research. Consult business owners who have previously won grants and obtain from them as much information as possible, guide and advice on the application process.
- Critically access yourself and your business to ascertain if you are qualified for the grant that you want to apply for.
- Begin to work on your grant application, ensuring that it fits all the laid down guides by the grant providers. Study and get all the materials that may be needed in the course of filling the application.
- Review and proof read your application thoroughly and make sure to keep a copy of your responses in your personal records.
After this, you can then submit your application through the specified medium. And await the grant providers’ response.
In Nigeria, the specified media for application for the world bank grant include:
-The Central Bank of Nigeria
-The Bank of Commerce and Industry
So, visit any of these banks near you and seek to speak with their customer care representatives, account managers of bank manager as the case may be.
The interest of the World Bank in empowering Nigerian youths through grants has been an underused avenue by Nigerians. This may be because of the fact that many are not aware of such avenues, and those that are aware do not put in the adequate work required to be considered serious enough to be deserving of such a grant.
To our amiable readers who seek business funding opportunities like this, we advice that you put all interest in shooting your shots on this grant target. We are hopeful that in a no long time, you will write our editors at Awesome Destination (dailynaijamode.com) on your grant success story.