The Federal Executive Council (FEC) approved the Nigerian Youth Investment Fund (NYIF) establishment on July 22, 2020. The scheme aims to boost the country’s economy by offering investment funds to young entrepreneurs. It is like a bank that will create easy access to credit and soft loans to the youth. It will support innovative youth skills, investment ideas, enterprises, entrepreneurial skills and talents. Some people in Nigeria still do not know how to access the funds. In this article, you will learn how to access the Nigerian Youth Investment Fund.
Things to Know About the Fund Before You Apply
The Central Bank of Nigeria (CBN) and the Ministry of Finance, Budget, and National Planning (MFBNP) will provide funds to finance the Nigeria Youth Investment Fund (NYIF). The Ministry of Youth and Sports Development will handle the funding process.
NYIF creates a common place where Nigerian youth can access government support through funding. Consequently, this will significantly reduce youth unemployment, which has been worsened by the COVID-19 pandemic. Additionally, government support will nurture a new generation of innovative young entrepreneurs.
The Nigerian Youth Investment Fund aims to reach 500,000 youth yearly between 2020 and 2023. The loans will be disbursed in three tranches of N25 billion each year. Individuals and groups can apply for the loans and each fund approval will range from N250,000 to N50,000,000, depending on the size of the business to receive funding.
The loans are disbursed in two forms: a working capital loan set at one year or a term loan set at three years with a 5% interest rate.
How to Access the Loan
Nigerian youth can access the loan if they meet the following requirements.
- Potential beneficiaries must be 18-35 years of age and can apply as an individual or group.
- Beneficiaries are expected to have a fundable or bankable business idea. Youths with genuine business ideas can approach any micro-credit bank in the country to access loans.
- Potential beneficiaries must have a simple business proposal that shows capital, profit margin, overhead cost, market, and business goals
- You must be a citizen of Nigeria.
- Applicants must have a registered business/company.
- You must present recognized means of identification such as National Identity Card, INEC Registration Card, Drivers License, or a Nigerian Passport.
- You must have at least one guarantor.
- Graduates will need to provide the National Youth Service Corps (NYSC( certificate.
- Provide a Bank Verification Number.
- Valid phone number and email address.
- You must not know anyone or “be connected” to access the fund at the time of application.
How to Apply for the Loan
The Ministry of Youth and Sports Development is responsible for the legislation of the NYIF in collaboration with relevant MDAs. The National Youth Investment Fund was to start operating by September 2020. Suppose you have a business idea or an existing business. In that case, you can visit the Nigeria Online Youth Assembly (NOYA) or Nigeria Ministry of Youth and Sports websites to apply for the fund. There are several opportunities that the youth can find at the NOYA website, including entrepreneurship funding programmes, mentorships, scholarships, and many more.
The Disbursement of the Loan
The fund will be disbursed through various channels like Micro Credit Organizations, finance firms, and deposit money to banks regulated by the Central Bank of Nigeria. It will be supported by BOI, Fintech Organizations and Venture Capital Organizations registered with the Central Bank of Nigeria.
Final Thoughts on How to Access the Nigerian Youth Investment Fund
The Nigerian Youth Investment Fund aims to combat youth unemployment to drive innovation, boost entrepreneurship, and support youth SMEs. If you are a Nigerian youth with a fundable business idea but lack the funds to bring it to reality, the NYIF will cater to your investment needs.