FirstBank has awarded ₦10 million in grants to three women-led businesses through the first edition of its Spark-A-Gem Challenge, following applications from 356 female entrepreneurs across Nigeria.

Eight applicants reached the final stage after a screening process and four-day business development programme. Onyinye Obayi, managing director of Honeypot Confections Limited, received the ₦5 million first prize, while the second- and third-place businesses received ₦3 million and ₦2 million respectively.

That means only three of the 356 applicants, approximately 0.8 per cent, received direct grant funding. The more important test is therefore not whether the competition produced three winners, but whether FirstBank can turn the remaining applicants into bankable businesses through financing, advisory support and market access.

What Did FirstBank Actually Award?

The ₦10 million was a grant pool shared among three businesses. It was not a ₦10 million grant available to every applicant.

Obayi’s Honeypot Confections received half of the total fund. The second-place business received 30 per cent, while the third received the remaining 20 per cent. The report did not disclose the identities of the second- and third-place winners.

The competition attracted businesses operating in agriculture, healthcare, education, food processing and hospitality. Eight finalists, representing about 2.2 per cent of all applicants, were selected to attend the final development programme and pitch before an independent panel.

For the three winners, the grants provide equity-free capital that does not need to be repaid. That matters at a time when borrowing costs, collateral requirements and short repayment periods continue to restrict small-business financing in Nigeria.

However, the size of the individual grants also limits what they can achieve. A ₦2 million or ₦3 million award could fund inventory, packaging equipment, product certification or a small expansion. It is unlikely to finance major machinery, new factories or nationwide distribution without additional capital.

Who Was Eligible for the Challenge?

The second-place winner received ₦3 million, while the third-place winner took home ₦2 million. The report did not name either business.

FirstBank received 356 applications from women running businesses in agriculture, healthcare, education, food processing and hospitality. Only eight founders made it to the final stage, where they attended a four-day business programme before pitching to an independent panel.

For the three winners, the attraction is clear. The money is a grant, not a loan. They do not have to repay it or give up a share of their businesses.

But the size of the awards also puts things in perspective. A ₦2 million or ₦3 million grant could help a small business buy stock, improve its packaging, secure product certification or purchase basic equipment. It will not go very far for a manufacturer looking to build a factory, acquire heavy machinery or expand across the country.

The programme was open to businesses with at least 51 per cent female ownership. Both FirstBank customers and women willing to open a FirstGem account could apply.

Eligible sectors included food processing, catering, logistics, beauty, agriculture, healthcare, education and digital skills. Applicants were also asked to submit a business plan and explain how their businesses were making an impact in their communities.

That tells us FirstBank was looking for more than a good product or a confident founder. Applicants also had to show that they understood their businesses, kept some form of financial record and had a realistic plan for growth.

This is where many small businesses struggle.

A founder may have loyal customers and steady sales but still find it difficult to attract funding because she cannot clearly show how much the business earns, what it spends or how the new capital will be used.

The competition was therefore also a test of how ready each business was to receive and manage funding.

Can ₦10 Million Address the Funding Problem?

The grants will make a difference to the three winners. But they are tiny when compared with the wider funding problem facing women-owned businesses.

A 2026 analysis by the International Finance Corporation found that women-owned SMEs accounted for only 19 per cent of outstanding SME loans among the financial institutions it studied. Their average loan size was also 28 per cent smaller than the average SME loan.

Yet those women-owned businesses recorded a slightly lower rate of bad loans than the wider SME market.

That raises an important question. If women-owned businesses are not performing worse on repayment, why are they still receiving fewer and smaller loans?

Part of the problem may be the way banks assess small businesses. Many lenders still depend heavily on collateral, formal financial records and long credit histories. Women entrepreneurs are often less likely to own the property or assets banks usually demand as security.

The problem is not limited to women.

The World Bank said in December 2025 that fewer than one in 20 Nigerian MSMEs had access to bank credit. Even when loans were available, many came with high interest rates, short repayment periods and collateral requirements that excluded otherwise viable businesses.

A ₦10 million competition cannot solve a problem of that size.

Its real value will depend on whether it becomes a path to something bigger. Will the winners gain access to larger loans? Will the other applicants receive useful financial support? Will FirstBank connect them to buyers, suppliers and new markets?

Those outcomes will matter more than the prize ceremony.

What Happens to the 353 Businesses That Did Not Win?

FirstBank said all applicants would become part of its FirstGem ecosystem, which offers financial education, business advice and possible access to future funding.

That could be the most valuable part of the programme.

Only three businesses received grants, but 353 others showed enough interest to apply. Many of them may not need a prize competition as much as they need affordable credit, better records, market access and guidance on how to grow.

The challenge is that FirstBank has not yet provided enough detail about what happens next.

The bank has not disclosed how many unsuccessful applicants may qualify for loans, what interest rates would apply or when the promised support will begin. It has also not explained how it will measure whether the businesses improve after joining the programme.

Without those details, the FirstGem ecosystem remains difficult to assess.

The clearest evidence of impact would be the number of applicants who later receive financing, increase sales, hire workers or enter new markets. Training sessions and networking events are useful, but they are not the same as business growth.

What Should Women Entrepreneurs Watch Next?

The Spark-A-Gem webpage still contains an application form, but it does not clearly state whether another round is open or provide a current deadline.

Entrepreneurs should not assume applications are active simply because the form is still online. They should wait for a fresh announcement from FirstBank and be wary of anyone demanding payment in exchange for guaranteed selection.

Those preparing for a future round should also focus less on sounding impressive and more on proving that the business works.

A strong application should clearly show how much the business earns, what its major costs are, whether it is profitable, how many customers it serves and what the grant would be used for.

The first Spark-A-Gem Challenge attracted 356 applications, but only three founders received cash awards.

The bigger story is what happens to the other 353. FirstBank will have a stronger case for impact if some of those women eventually secure loans, win contracts, expand their businesses and employ more people.

Expert View

World Bank Country Director for Nigeria Mathew Verghis has said that women-led businesses need more than short-term interventions. They need longer-term financing and lenders willing to design products around the realities of small businesses.

That argument supports FirstBank’s decision to combine grants with training and business support.

But training alone will not close the funding gap.

Founders can improve their records, sharpen their pitches and learn how to manage cash flow. At some point, however, they still need capital they can afford to repay. That is the real test for programmes such as Spark-A-Gem.

That assessment supports FirstBank’s decision to combine capital with training and advisory services. It also highlights the limitation of relying mainly on pitch competitions. Training may improve a company’s financial records and investment readiness, but businesses still need affordable, sufficiently large and appropriately structured capital after the programme ends.

Frequently Asked Questions

How much did FirstBank award through Spark-A-Gem?

FirstBank awarded a combined ₦10 million. The first-place winner received ₦5 million, while the second- and third-place winners received ₦3 million and ₦2 million respectively.

Who qualified for the FirstBank women entrepreneurs’ programme?

The official application page required applicants to operate women-owned or women-led MSMEs with at least 51 per cent female ownership. Eligible sectors included food processing, logistics, beauty, agriculture, healthcare, education and digital skills.

Is the Spark-A-Gem application still open?

The official page currently displays an application form but does not provide a clear current deadline. Because the first competition has concluded, entrepreneurs should wait for a new dated announcement from FirstBank before treating the form as an active application round.