The Central Bank of Nigeria (CBN) has disclosed the types of businesses that are qualified to access Federal Government’s N75 billion Youth Investment Fund.
The businesses, according to the apex bank, are -Technology/Innovation; agriculture and related value chain; green economy and renewable energy sector; manufacturing, hospitality/tourism; construction and logistics and supply chain; healthcare value chain, creative sector and trading and services while the rest shall be determined by NYIF/CBN from time to time.
Speaking on the development, the CBN explained the major objectives of the scheme.
“The major objectives of the scheme are to improve access to finance for youth and youth-owned enterprises for national development; generate much-needed employment opportunities to curb youth restiveness and boost the managerial capacity of the youth and develop their potentials to become the future large corporate organizations,” it stated.
In a framework for the operation of the NIRSAL Microfinance Bank (MfB) window of the Fund, CBN stated that preference shall be given to enterprises that will support the growth of priority sectors, specifically those identified by the Economic and Recovery Growth Plan (ERGP) and the Nigerian Youth Employment Action Plan.
It’s however pertinent to know that The Nigerian Youth Employment Action Plan was developed by the Federal Ministry of Youth and Sports Development (FMYSD) as a built-in strategy to give a response to the youth employment challenge in Nigeria. The major objectives of the plan are to address the fragmentation of youth initiatives that prevent the assessment of impact and to provide Nigeria youth with investment inputs needed to build successful businesses that can become sustainable employers of labor and major contributors to Nigeria’s development.
The framework also stipulates that the NYIF will facilitate the transition of informal enterprises owned by youth into the formal mainstream economy where they can be supported comprehensively, build a bankable track record; and be accurately captured as active participants in economic development.
What you should know
For Formal Business Enterprises (Youth Owned Enterprises) or enterprises that are legal entities duly registered with the Corporate Affairs Commission (CAC), the documents required are Evidence of registration with Corporate Affairs Commission (Certificate of Incorporation and Form CAC 2A); Business questionnaire; list of directors with BVN nos.; Evidence of regulatory approvals (where applicable); Tax Identification Number (TIN).
- Cooperative societies duly registered with the relevant government authorities and members of Commodity Associations that fall within the eligible age bracket are also eligible to participate.
- Individual (unregistered business) shall be determined based on activity/nature of project subject to the maximum of N250,000.
- Registered businesses (business name, limited liability, cooperative, commodity association shall be determined by activity/nature of project subject to the maximum of N3.0 million (including working capital).
- Applicants currently enjoying NMFB loans, including the Targeted Credit Facility (TCF) and Agribusiness/Small and Medium Enterprises Investment Scheme (AgSMEIS) loans that remain unpaid are not eligible to apply.
- Beneficiaries of other government loan schemes that remain unpaid are also not eligible to participate.
- Applicants shall undergo a compulsory entrepreneurship training arranged or approved by the Federal Ministry of Youth and Sports Development.
Recall that on July 22, 2020, the Federal Executive Council approved the sum of N75, 000,000,000.00 (seventy five billion naira) for the establishment of the Nigeria Youth Investment Fund for the period of 2020- 2023.this initiative was dedicated to invest in the innovative ideas, skills and talents of Nigerian youth, and to institutionally provide the youth with a special window for accessing much needed funds, finances, business management skills and other inputs critical for sustainable enterprise development.