Grant eligibility criteria
- The lead institution is an academic institutions, research institution, industrial center, business membership organization or non-governmental organization, in partnership with at least 3 of any of the following: a for-profit private sector company(s), partnership(s) or sole trader(s);
- The lead institution must be operating in Nigeria;
- The total GEM funding requested must be at least $50,000 and no more than $250,000;
- ? The lead institution and its partners must together provide matching cash or cashequivalent funds of at least 50 percent of the total project budget;
- 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 be at least 50 percent of total project costs in cash or cash equivalent.
The private partners should account altogether for at least 40 percent of the total project budget. To be called a partner, a for-profit private sector company(s), partnership(s), business organization(s) or sole trader(s) shall provide at least 5 percent of the total project budget.
The nature of the matching contribution will be approved on a project by project basis. Grantees will 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.