Nigeria has one of the highest poverty rates in the world, and a larger percentage of this are the youths. Because of this, the government created different empowerment programs and funding schemes to encourage entrepreneurship. Developing businesses is the fastest way to getting rid of unemployment in the country, and the Nigerian youth investment fund addresses just that. Here’s everything you should know about the Nigerian youth investment fund.
What are the objectives of the Nigerian youth investment fund?
- The government developed the Nigerian youth investment fund to target Nigerian youths and has a goal to generate at least 500,000 jobs between 2020 and 2023. According to the official release, the objectives of this scheme are:
- To improve access to finance for youths and youths and youth owned national development
- Generate much needed employment opportunities to curb youth restiveness
- Boost the managerial capacity of the youth and develop their potential to become the future of large corporate organization
- This scheme is funded with an initial take off seed capital of N2.5 billion.
What are the eligibility criteria of the Nigerian youth investment fund?
You must fulfill the following qualification and document criteria to be eligible for this fund:
- A youth within the age range of 18 to 35 years
- Own a registered business domiciled and operational in Nigeria
- You must have not been convicted of any financial crime in the last 10 years
- Must hold a valid Bank Verification Number (BVN)
- Possess local government indigene certificate
Also, the Nigerian youth investment fund registration requires the following document from you:
- Evidence of registration with Corporate Affairs Commission (Certificate of incorporation and form CAC 2A)
- Business questionnaire
- List of business directors and their BVN numbers
- Evidence of regulatory approvals where applicable
- Tax identification number (TIN)
Nigerian youth investment fund – ineligible applicants
You are ineligible to apply for the Nigerian youth investment fund if you are currently a beneficiary of NMFB loans at the time of application. These loans include the Targeted Credit Facility (TFC) and Agric business/small and Medium Enterprises Investment Scheme (AgSMEIS). Also, you cannot apply as a beneficiary of other government loan schemes.
What businesses are eligible to enjoy the Nigerian youth investment fund?
The Nigerian youth investment fund is accessible by the following businesses:
- Technology and innovation
- Agriculture and related value chain
- Green economy and renewable energy sector
- Manufacturing
- Hospitality and tourism
- Construction
- Logistics and supply chain
- Healthcare value chain
- Creative sector
- Trading and services
- The NYIF and CBN may include others from time to time.
However, note that preference is given to enterprises that support the growth of priority sectors. The businesses are identified by the Economic Recovery Growth Plan (ERGP) and the Nigerian Youth employment action plan.
Are there any other perks?
Yes, there is one. They mandate all applicants to go through entrepreneurship training, which is arranged and approved by the Federal Ministry of Youth and Sports Development.
What are Nigerian youth investment fund terms?
The terms and conditions of the Nigerian youth investment fund are as follows:
- Loan rate:
For unregistered individual businesses, the stated amount is a maximum of N250,000, subject to the activity and nature of the project. Registered businesses, on the other hand, are subjected to a maximum loan sum of N3.0 million including work capital. It depends on the nature and activity of the project.
- Tenor:
The loan is subject to a maximum of 5 years, depending on the asset required and nature of the business.
- Interest rate:
the interest rate shall not be more than 5% per annum.
- Moratorium:
The scheme allows a moratorium of up to 1 year depending on the nature of nosiness and asset acquired.
- Bank:
The eligible financial institution for this scheme is the NIRSAL Microfinance Bank (NMFB).
- Collateral:
The NMFB would leverage on the General Standing Instruction (GSI) as collateral.
- Repayment:
repayment would be made to the NMFB by beneficiaries according to the repayment schedule and work plan as agreed during the application process.
How do I apply for the Nigerian youth investment fund?
The application procedure for this loan is very easy. To apply, simply visit the official website at www.nyif.nmfb.com.ng and follow the procedure. On successful credit checks, processing and confirmation, NMFB shall release funds accordingly to approved enterprises.
Conclusion
This scheme is designed to provide funds for youths to be able to chase their dreams in entrepreneurship. If you are a business owner, we highly encourage you to apply for this, for your betterment and that of the economy as a whole.
