Searching for a single-digit loan to launch or expand your business? The Federal govt. is launching the Nigerian Youth Investment Fund to empower Nigerian youths to become entrepreneurs. See if you’re qualified and what you need to do to access the funding.
As a Nigerian entrepreneur, one endemic challenge you often face is access to cheap capital to fund and grow your business.
And, it is even more challenging to gain access to these funds when you’re a youth.
So as a youth-led business in Nigeria, you are not only dealing with poor infrastructure, but also lack of inexpensive, easy-to-access funding opportunities.
In cases where you are even able to discover funding opportunities, the conditions and terms required to access those funds are steep and way beyond your reach.
Thankfully all of that is about to change.
The Federal government of Nigeria is launching a new initiative that promises to focus solely on providing funding opportunities for youth-led enterprises.
This means, if you’re between the age of 18-35 years, you can apply and obtain single-digit loans without having to go through the tedious traditional route.
What is the Nigerian Youth Investment Fund?
The Nigerian Youth Investment Fund is an initiative of the Federal government that is dedicated to investing in the innovative ideas, skills, talents and enterprise of the Nigerian Youth and aimed at turning them into Entrepreneurs, Wealth Creators and Employers of labour contributing to national development.
The Youth Fund which is a brain-child of the Ministry of Youths and Sports Development was approved by the Federal Executive Council on July 22, 2020.
What You Need to Know About the NYIF
- The Nigerian Youth Investment Fund (NYIF) is a ringfenced Fund that will strictly cater to the investment needs of persons between the ages of 18 and 35 years old.
- It is a restricted Fund that can only be used for the set purpose of Youth Investment.
- The Fund is sponsored by the Ministry of Finance, Budget and National Planning and the Central Bank of Nigeria.
- The Fund will kickstart with an initial NGN25 billion for this year.
- The initiative is expected to last for 3 years with NGN25 billion earmarked for each year.
- NYIF provides a single-window of Investment Fund for the youth thereby creating a common bucket for all Nigerian youth to access Government support.
- The Fund hopes to provide less cumbersome access to credit and finance for the average Nigerian youth with an approved work plan or business idea.
- NYIF hopes to reach 500,000 youths each year for the next 3 years.
Who is Eligible to Apply for The Nigerian Youth Investment Fund?
Before you can access the NYI fund, you must meet certain criteria. In this section, we listed all the requirements needed for a successful application:
- Applicants must be Nigerian.
- The business or business idea you’re seeking funding for must be domiciled in Nigeria.
- You must be between 18-35 years to qualify for the loan.
- Must have a viable and bankable business or business idea
- Not restricted to for-profit businesses alone. (Usually, Youth funds focus aggressively and singularly on only rapid growth businesses. But NYIF will invest in businesses that have deeper value than only money. Such businesses must, however, be viable and able to fulfil all criteria to ensure the fund does continue to expand and serve as a production factory for businesses, but it will encourage creative arts, culture focused businesses because Nigeria needs to start rediscovering the beauty and depth of its culture.)
- Youth seeking to benefit from the fund must have a registered business.
- You must be able to present a recognized means of identification.
- Must be able to present recognized guarantors.
How Much is the Nigerian Youth Investment Fund?
The Federal government approved a 75 billion fund for the program which will last for 3 years.
25 billion naira is earmarked for each year. However, for the remaining months of 2020, 12.5 billion will be disbursed to beneficiaries.
How Much Can Beneficiaries Expect to Receive?
Beneficiaries can expect to receive between NGN250,000 to NGN50,000,000. Youths can apply as a group or as individuals.
When applying a s a group, you will be required to list the individual beneficiaries and how much each person needs.
What is The Repayment Terms of The NYIF Loan?
NYIF is a single-digit loan of 5%.
According to the announcement by the Ministry of Youths and Sports Development, the loan can be:
“working capital loans set at 1 year and term loans set at 3 years with single digit interest rate of 5%.
The funding will be a single digit facility with a moratorium for a year and payable over a designated period.
Some businesses may have longer repayment cycles but again the criteria will be clear and appliance to all.”
How Will Beneficiaries Receive Their Approved Funds?
The approved loans will be disbursed to beneficiaries through several channels including: Micro Credit Organizations across the country under the Central Bank of Nigeria supported by BOI, Fintech Organizations and Venture Capital Organizations, registered with the CBN.
NYIF will use proven disbursement frameworks but with special conditions with respect to the youth. There will also be a residual advisory facility for applicants and beneficiaries.
How to Apply For Nigerian Youth Investment Fund
At the moment, there is no official release on the application process. BOOKMARK this page nnow, so you will be the first to know ehn the announcement is made.
The application portal for the Youth Investment Fund is now open. To apply visit:
When Will the Nigerian Youth Investment Fund Application Portal Open?
The Application Portal is now open.
No official announcement yet. However, the Central Bank of Nigeria recently tweeted a teaser:
“Nigeria Youth Investment Fund…Coming Soon” #CBN #FMYSD #NIRSAL
What You Can Do While Waiting For The NYIF Application Portal to Open
While waiting for the application portal to open, you can do the following:
- Gather your business documents (registration, incorporation files, tax files and other relevant docs)
- Register your business if you haven’t done so yet.
- Ensure you have officially recognized means of identification (Driver’s license, International Passport, National ID, etc.)
- Inform your guarantors and get them prepped.
- Follow us to get early news when the application begins.
So there you have. Have any questions? Feel free to leave your questions in the comment section.
Read More About the Nigerian Youth Investment Fund
Related: Federal Government Grants For Nigerian Entrepreneurs