As access to finance continues to pose a major challenge for Nigerian entrepreneurs, experts are urging founders to pay closer attention to grant funding as a viable and largely untapped source of capital. With billions of dollars expected to flow into Africa through grants in the coming years, stakeholders say Nigerian businesses that fail to prepare risk missing out on critical growth opportunities.

Speaking on the outlook for 2026, Founder of Opportunity Square, Ezinne Nwokafor, said grant funding remains one of the most misunderstood and underutilised funding options among Nigerian entrepreneurs, despite the country’s strong appeal to global funders.

According to data from the International Finance Corporation (IFC), small and medium-sized enterprises across Africa face a financing gap of over $330 billion, with Nigeria accounting for a significant portion. Nwokafor noted that while many founders focus heavily on loans and venture capital, grants often receive little attention.

“Grants are one of the biggest missed opportunities for Nigerian entrepreneurs,” she said. “As we move towards 2026, funding from global development agencies, foundations and corporate organisations is increasing, not shrinking, and Nigeria is firmly on their radar.”

Nwokafor explained that several grant categories are expected to attract strong funding interest in the coming years. She said global entrepreneurship and development grants remain a major source of support for businesses addressing issues such as job creation, healthcare, education, food security and financial inclusion.

“With Nigeria projected to become the third most populous country in the world by 2050, funders are actively looking for scalable, locally built solutions that can address large social and economic challenges,” she said.

She also highlighted the rapid expansion of climate and sustainability grants, noting that the African Development Bank estimates Africa will require between $277 billion and $407 billion annually to tackle climate-related challenges. According to her, Nigerian entrepreneurs operating in renewable energy, agritech, waste management and climate-smart innovations are well positioned to benefit from these funds in 2026.

In the technology sector, Nwokafor said Nigeria’s leadership position continues to attract global attention. Industry figures show that Nigeria has drawn over $1 billion in startup funding during peak years, making it Africa’s largest startup hub. While venture capital funding remains unpredictable, she noted that global tech companies and innovation funds continue to offer non-dilutive grants in areas such as fintech, artificial intelligence, healthtech and digital infrastructure.

Women-led businesses,Nwokafor added, should be particularly strategic in the coming year. She cited World Bank data showing that women entrepreneurs in Africa receive less than 10 per cent of available funding, despite strong performance. “In response to this imbalance, many global funds now offer grants exclusively for female founders, making 2026 a critical opportunity for women-owned Nigerian businesses,” she said.

Despite the growing availability of grants, Nwokafor noted that many Nigerian entrepreneurs still miss out, not due to lack of qualification, but because of poor access to timely and accurate information. She said grant opportunities are often scattered across multiple platforms, poorly communicated or discovered after deadlines have passed.

“This is the gap Opportunity Square was created to solve,” she explained.

Through Grants Zone, a free grant database developed by Opportunity Square, entrepreneurs can access verified local 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 rumours or last-minute discoveries on social media.

“The grants are out there,” she said. “With platforms like Grants Zone, Nigerian founders no longer have an excuse to miss these opportunities.”

Opportunity Square is a pan-African platform focused on connecting entrepreneurs to funding, resources and growth opportunities, with Grants Zone freely accessible to founders across the continent.