As access to capital continues to be a major challenge for Nigerian entrepreneurs, experts urge founders to pay close attention to grants as a viable and largely untapped source of capital. With billions of dollars expected to flow into Africa in the coming years through subsidies, Nigerian companies risk missing out on important growth opportunities if they are not prepared, officials say.
Speaking on the outlook for 2026, Opportunity Square founder Edin Nwokafor said despite Nigeria’s strong appeal to global funders, grants remain one of the most misunderstood and underutilized funding options among Nigerian entrepreneurs.
According to data from the International Finance Corporation (IFC), small and medium-sized enterprises across Africa face a funding gap of more than $330 billion, with Nigeria accounting for the lion’s share. Nwokafor noted that while many founders focus on loans and venture capital, grants often receive little attention.
“Grants are one of the biggest missed opportunities for Nigerian entrepreneurs,” she says. “As we head into 2026, funding from global development agencies, foundations and business organizations is increasing, not decreasing, and Nigeria is on their radar.”
Mr Nwokafor explained that several grant categories are expected to attract strong funding interest in the coming years. He said global entrepreneurship and development grants remained a key source of support for companies tackling issues such as job creation, health care, education, food security and financial inclusion.
“Nigeria is projected to become the world’s third most populous country by 2050, and funders are actively seeking scalable, locally-built solutions that can address major social and economic challenges,” she said.
He also highlighted the rapid expansion of climate change and sustainability subsidies, noting that the African Development Bank estimates that Africa needs between $277 billion and $407 billion annually to address climate-related challenges. According to her, Nigerian entrepreneurs active in renewable energy, agritech, waste management and climate-smart innovation are well-positioned to benefit from these funds in 2026.
Nwokafor said Nigeria’s leadership position in the technology sector continues to capture the world’s attention. At its peak, Nigeria attracted more than $1 billion in startup funding, making it Africa’s largest startup hub, according to industry statistics. He noted that while venture capital funding remains unpredictable, global tech companies and innovation funds continue to provide non-dilutive grants in areas such as fintech, artificial intelligence, healthtech and digital infrastructure.
Women-led businesses should become especially strategic in the coming year, Nwokafor added. She cited World Bank data showing that African women entrepreneurs receive less than 10% of available funding despite their strong performance. “In response to this imbalance, many global funds are providing grants only to women founders, making 2026 a key opportunity for women-owned Nigerian businesses,” she said.
Nwokafor noted that despite the increased availability of grants, many Nigerian entrepreneurs still miss out on them not because they lack eligibility, but because they lack access to timely and accurate information. He said grant opportunities are often spread across multiple platforms and are often poorly communicated or discovered after deadlines.
“This is the gap Opportunity Square was created to solve,” she explained.
Through Grants Zone, a free grants database developed by Opportunity Square, entrepreneurs can access verified national and international grant opportunities in one central platform. Nwokafor said the initiative is designed to help founders plan ahead, apply strategically and avoid relying on rumors on social media or last-minute discoveries.
“The subsidies are there,” she said. “Thanks to platforms like Grants Zone, Nigerian founders no longer have an excuse to miss out on these opportunities.”
Opportunity Square is a pan-African platform focused on connecting entrepreneurs with capital, resources and growth opportunities, with a Grants Zone freely accessible to founders across Africa.
