1. AFRILABS BACKGROUND

AfriLabs is a network organization supporting over 500 technology and innovation hubs across 53 African countries. We support the growth of technology hubs and their community to raise high potential entrepreneurs that will stimulate economic growth and social development in Africa. We do this by providing capacity building resources, financing, mentoring, and networking opportunities to our network members.

As part of global best practices and to ensure transparency, accountability, and integrity in grant disbursement, AfriLabs seeks to engage a qualified and independent due diligence firm to conduct verification and validation assessments on the provisional winners of grants.

The due diligence will focus on confirming the accuracy of submitted information, business legitimacy/legalities and founder credibility.

2. PURPOSE OF THE ASSIGNMENT

The purpose of this assignment is to conduct a targeted, evidence-based due diligence assessment on six (6) shortlisted finalists.  Specifically, the assessment will:

• Verify the authenticity and accuracy of submitted documentation

• Validate the legal existence and operational status of each shortlisted business as shown in the business documents

• Confirm the credibility and integrity of business founders.

• Screen for involvement in any illegal, fraudulent, or misconduct-related activities

• Identify any financial, operational, legal, or reputational risks

• Provide a clear, evidence-based recommendation to inform final funding decisions

3. SCOPE OF WORK

The Selected Due Diligence Firm will conduct verification on all six (6) finalists across the following five assessment domains using a structured and evidence-based approach. The firm is expected to execute the work efficiently within the assigned timeline. Physical verification visits are required for all six (6) finalists across Abia, Abuja (FCT), and Lagos State. The firm will carry out the following specific tasks across all shortlisted finalists:

   A. Business Verification

• Confirm legal registration status (CAC or equivalent)

• Validate ownership and control structure of the business

• Verify business address and confirm operational presence at declared location

• Confirm alignment between declared and actual business activities

• Identify and document any inconsistencies in submitted records

• Independently validate all business registration documents with the relevant issuing government agencies (e.g. CAC, FIRS, State Ministries as applicable), as well as the business’ operational and financial records.

  B. Founder Background Checks

• Verify and confirm founders’ identity using valid government issued documentation (NIN, international passport, driver’s license)

• Review professional and entrepreneurial history

• Conduct screening for: 

• Litigation history

• Fraud or professional misconduct

• Carry out reference-based reputation checks (minimum two independent references per founder)

  C. Financial & Operational Assessment

• Request and review financial documentation including, bank statements (at least the last 3 months), tax identification records, sales/revenue records, and invoices or receipts where applicable

• Validate revenue claims, customer traction, business model viability 

• Assess operational capacity and consistency between declared and observed operations

  D. Physical Verification

 Conduct on-site verification visits to all six (6) business locations across Abia, Abuja (FCT), and Lagos State

• Confirm existence and operational setup of the business

• Capture supporting evidence including photographs, records, and recordings as applicable

• Assess alignment between physical operations and submitted documentation

  E. Compliance & Risk Screening

• Check compliance with basic regulatory requirements applicable to the business type and sector

• Identify and classify risks across four categories: Legal, Financial, Operational, and Reputational

• Highlight any material red flags with supporting evidence

  F. Risk Classification and Recommendation

• Assign a risk rating to each finalist: Low / Medium / High

• Provide clear justification for each risk rating

• Issue a funding recommendation for each finalist, choosing from one of the following:

• Proceed

• Proceed with Conditions (conditions must be stated explicitly)

• Do Not Proceed

4. EXPECTED DELIVERABLES

The following deliverables are required upon completion of the assignment:

A. Inception Report

• Approved methodology and approach

• Detailed work plan and timeline (milestone-based), verification tools, checklists, and templates to be used  

B. Individual Due Diligence Reports (x6)

A separate, standardized report for each of the six (6) finalists. Each report must follow the AfriLabs-provided template (to be shared at the inception stage). Each report must include: 

Each report should include:

• Executive summary

• Business overview

• Detailed verification findings across all assessment domains risk rating with justification

• Key observations and red flags (if any)

• Supporting evidence references

• Funding recommendation with rationale

• Pictures or visual evidence as recorded

  C. Consolidated Report

A single summary report covering all six (6) finalists, including:

• Summary of findings across all finalists

• Comparative risk overview

• Final recommendations for funding decisions

  D. Evidence Annex

• Completed verification checklist per finalist

• Documentation log

• Full Audit trail of desk-based and field activities

5. REQUIRED QUALIFICATIONS

A. Firm Requirements 

• Registered consulting firms in Nigeria providing audit, legal and/or due diligence services.

• Demonstrated experience in SME verification, investigations, or risk assessment

• Evidence of the firm legal registration and professional license

• Track record of completed similar assignments within the last five (5) years, specifically involving SME verification, grant due diligence, or business background checks. 

• Minimum of 3 organization references (Name, email, and phone number). Reference must be contactable

• Demonstrate ability to conduct efficient, targeted field and desk-based verification

B. Team Composition

• Due diligence specialist

• Field verification officer(s) -to cover all three locations

• Financial/risk analyst

C. Core Competencies

• Strong analytical and investigative capabilities

• Excellent technical writing and reporting skills

• High ethical standard and commitment to confidentiality

• Strong knowledge of Nigeria’s SME landscape, legal and regulatory environment

• Proven due diligence experience with private /government institutions.

6. DELIVERABLE DURATION 

• Duration: 7-14 working days

• Start Date: Immediately upon contracting

7. CONFIDENTIALITY & ETHICAL REQUIREMENTS

All findings, data, and information gathered during this assignment are strictly confidential and may only be used for the purposes of this engagement. The following requirements apply:

• The selected firm and all team members assigned to this engagement will be required to sign a Non-Disclosure Agreement (NDA) prior to commencement of work

• No information about the finalists, their businesses, or the assessment process may be shared with any third party without prior written consent from AfriLabs

• All physical and digital materials must be stored securely, destroyed or returned to AfriLabs upon conclusion of the engagement

• Any actual or perceived conflict of interest with AfriLabs,  or any of the six (6) finalist businesses must be declared in writing prior to contract award. Failure to disclose will result in immediate disqualification and contract termination

8. REPORTING & MANAGEMENT ARRANGEMENTS

The selected firm will operate under the following management structure:

• Primary Reporting Line:  Programme Lead, AfriLabs

• Working Relationship: AfriLabs Programme Team and AfriLabs Compliance Team

• Communication Protocol: All queries, draft submissions, and final deliverables must be submitted via email to the Programme Lead. Verbal documented updates may be requested at key milestones.

9. PAYMENT TERMS

• Payment: 40% Payment after submission and approval of inception report and 60% of the agreed fee upon written approval of the final consolidated report by the Programme Lead

• Payment processing timeline: Within thirty (30) days after submission of final report, approval and invoice

• AfriLabs reserves the right to request one (1) round of revisions before issuing final approval. Revised reports must be resubmitted within two (2) working days of receiving revision comments

• No payment will be made for incomplete, substandard, or unapproved deliverables

• Payments will be subject to applicable tax deduction.

10. EVALUATION CRITERIA

Shortlisted firms will be contacted for a clarification of interview prior to final selection.

11. METHOD OF APPLICATION

Interested and eligible firms should submit their proposal to bids@afrilabs.com on or before 22nd May, 2026 with Subject Line: Application for Due Diligence Firm. 

The proposal must include all the following documents:

• Filled and signed Vendor Information Form

• Evidence of the firm’s legal registration and professional license

• Cover letter (maximum 2 pages) addressing the firm’s relevant experience and understanding of the assignment

• Company profile (If available)

• CVs of all proposed team members, highlighting relevant experience

• Proposed methodology and workplan (Maximum 3 pages)

• Evidence of minimum three (3) similar assignments completed within the last five (5) years, including client name, scope, and a contactable reference per assignment. 

• Financial proposal detailing total cost, daily rates, and travel/logistics costs per location.

Please note:

• Download vendor information form before use.

• Incomplete applications will not be considered.

12. DISCLAIMER

AfriLabs reserves the right to review, shortlist, and engage consultants based on qualifications and alignment with project requirements. Submission of an application does not guarantee award of contract. AfriLabs is not obligated to provide reasons for non-selection. Canvassing of AfriLabs staff or associates in connection with this ToR will result in automatic disqualification.