Grant eligibility criteria
- The firm is a for-profit private sector company(s), partnership(s) or sole trader(s);
- The firm must be operating in Nigeria;
- The firms must be registered with the Corporate Affairs Commission;
- The entity’s business idea must seek to change the competition structure in the market through an innovative product, an innovative business process, an innovative business model, an innovative partnership, etc.;
- The total GEM funding requested must be at least $50,000 and no more than $250,000;
- The matching cash or cash-equivalent will be define in the call for proposals and can range from 5 to 50 percent of the total project budget. Allowable cash equivalent funds are as follows: existing equipment and existing technologies (patented, trademarked or licensed);
- GEM funding must be requested for utilization on eligible costs or activities;
- The institution must satisfy the requirements on Environmental and Social compliance;
- Other eligibility criteria will be added depending on the call for proposals;
- The GEM funding requested must be utilized within 15 months; and
- The proposed idea must result in increased sales for the business, increased value added per worker and creation of new jobs.
Matching fund requirements
Firms applying for these grants are expected to co-invest in the project in order to ensure risks are shared and incentives are aligned. The expected level of matching funds will range from 5 to 50 percent of total project costs in cash or cash equivalent.
The nature of the matching contribution will be approved on a project by project basis. Grantees will usually be required to fund the proposed activities upfront and the matching contribution will be in form of a reimbursement by the GEM project upon approval.
As a general rule, the following could be included as matching funds:
- Cash investment by the grantee and implementing partners in case of a consortium;
- Facilities provided by other institutions (e.g. equity investments, bank loans, overdraft facilities).
The GEM Institutional grants will fund technical assistance, equipment and goods related to a specific business idea, business plan or activity(s). Depending on the call for proposals, the eligible activities could be works. However funding of works will necessitate an environmental and social management plan as part of the proposal, done by an independent consultant.
Grantee selection process
- Calls for proposal
- Submission of business plans
- Evaluation of submissions and invitation for interview
- Site visits and due diligence
- Award of grant to successful firms
Successful grantees will sign a contract with the Federal Ministry of Industry, Trade and Investment (FMITI). The contract commits the grantee to the terms and conditions of the grant.