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The Importance of Grants and Subventions to Governments and Organizations.

By Chidi Anumudu, B.Sc., Dip.BM

Grants and subventions play a critical role in financing various projects and programs implemented by governments and organizations. They provide support for initiatives that are geared towards improving the welfare of citizens, promoting economic growth, advancing research, and promoting social progress.

A grant is a sum of money provided by a government, organization, or foundation to fund a specific project or initiative. Grants can take many forms such as research grants, educational grants, and infrastructure grants. On the other hand, subventions are regular payments made by a government or organization to fund the ongoing operation of a project or organization.

One of the reasons why grants and subventions are important is that they provide governments and organizations with the funds necessary to implement projects and programs that could not be undertaken without outside support. For instance, a small business or research institute may not have adequate funds to undertake a project, but a grant or subvention can provide the necessary financial backing.

Also, grants and subventions are essential in promoting economic growth. They can be used to enhance research and development, provide startup capital to businesses, or create job training programs. Government and organizational grants can also be targeted towards boosting particular economic sectors or regions, offering long-term benefits to citizens with increased employment opportunities, higher wages, and increased state revenues.

Furthermore, many organizations, especially nonprofits that do essential persons-oriented work, depend on grants and subventions to survive. These organizations are committed to providing aid to people who need it, and it’s in the best interest of the public that they are able to continue operating. Many nonprofit organizations fight for causes like hunger relief, education, or medical care and assist those that can’t find help elsewhere.

Moreover, another importance of grants and subventions is that they can foster innovation. The funds may support groundbreaking ideas and research that can lead to the development of new products, technologies, or approaches to solving real-world problems. In the long run, these innovative solutions can have a significant impact on improving living standards and enhancing quality of life.


Grants and subventions can also help in promoting social progress. They can be used to support education initiatives, provide healthcare services, or promote cultural preservation and restoration. Grants for education can aid in fostering a society that’s informed and knowledgeable, ensuring individuals have the tools to be productive and contribute positively to their communities. Healthcare grants can provide funding for medical research and to ensure that necessary medical care is available.

In conclusion, grants and subventions play a critical role in providing financial resources to governments and organizations for the implementation of developmental programs and projects. From funding academic research, creating new technologies, promoting economic growth to supporting social progress, grants and subventions contribute substantially to our collective welfare. Without proper support, many essential programs would fail to provide valuable services to those that need them the most. Therefore, it is essential that governments and organizations continue to recognize the importance of grant funding and ensure that they are used effectively and efficiently.

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FULL LIST: Kaduna, Abia, Rivers… 28 states attracted zero foreign investments in six months

FULL LIST: Kaduna, Abia, Rivers… 28 states attracted zero foreign investments in six months

BY VICTOR EJECHI, THE CABLE NEWS

OCTOBER 7, 2023 9:46 AM

Foreign investors ignored 28 states as the value of capital importation into Nigeria fell by 30 percent to $2.16 billion in the first half of 2023, from $3.11 billion in the same period last year.

The National Bureau of Statistics (NBS) disclosed this in its latest capital importation report for the second quarter (Q2) of 2023.

Nigeria’s capital imports for the first half of 2023 totalled $2.16 billion, with $1.13 billion imported in Q1 and $1.03 billion in Q2.

According to the NBS report, the 28 states that failed to attract foreign investment in H1 2023 include:

  • Abia
  • Bauchi
  • Bayelsa
  • Benue
  • Borno
  • Cross River
  • Delta
  • Ebonyi
  • Edo
  • Enugu
  • Gombe
  • Imo
  • Jigawa
  • Kaduna
  • Kano
  • Katsina
  • Kebbi
  • Kogi
  • Kwara
  • Nasarawa
  • Osun
  • Oyo
  • Plateau
  • Rivers
  • Sokoto
  • Taraba
  • Yobe
  • Zamfara

LAGOS: A GlOBAL DESTINATION FOR FOREIGN INVESTORS

In the period under review, Lagos took the lead, outshining others — and the federal capital territory (FCT) — to top the list of states that attracted the most investments.

Analysis by TheCable Index shows that the country’s major commercial city attracted $1.48 billion, representing 69 percent of the total capital inflow into Nigeria.

Babajide Sanwo-Olu, governor of Lagos, recently assured investors that the state is the right place for investments and “the crown subnational jewel of the African economy”.

He said Lagos was ripe for investments in financial technology, education technology, health technology, business process outsourcing (BPO), talent training and placement, or physical infrastructure like data centres, among others.

According to the NBS report, the FCT emerged as the second top investment destination with $604.55 million — representing 28 percent of the total capital inflow in the country in the first six months of the year.

Other states that attracted foreign investments in the half-year period are Akwa Ibom ($39.1 million), Adamawa ($4.5 million), Anambra ($4 million), and Ogun ($26.1 million).

Niger made the list with $1.50 million, Ondo had $200,000, and Ekiti secured $25,500.