Framework For Implementation Of 75bn National Youth Investment Fund With 5% Interest Rate Per Annum

Framework For Implementation Of 75bn National Youth Investment Fund With 5% Interest Rate Per Annum
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The Nigerian Youth Employment Action Plan was developed by the Federal Ministry of Youth and Sports Development (FMYSD) as a built-in strategy to respond effectively 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 required to build successful businesses that can become sustainable employers of labor and contributors to Nigeria’s development.

The plan targets young people between the ages of 18-35 years and details the needed actions required to support business establishment, expansion, and consequent employment creation for youth in critical economic and social sectors.

The Federal Executive Council approved the sum of N75,000,000,000 (seventy-five billion nairas) for the establishment of the Nigeria Youth Investment Fund from 2020 to 2023 dedicated to investing in the innovative ideas, skills, and talents of Nigerian Youth, and to institutionally provide our youth with a special window for accessing much-needed funds, finances, business management skills and other inputs critical for sustainable enterprise development.

The NYIF aims to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.

The fund will be managed by NIRSAL MFB as the only participating Financial Institution (PFI) and shall be funded with an initial take-off seed capital of N12.5 billion.

Eligibility

  1. Informal Business Enterprises (Individuals and Sole Proprietors)
    A huge percentage of youth are engaged in the informal sector. Accordingly, 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. Eligible youth must fulfill the following conditions:
  • Be a youth within the age bracket of 18-35 years.
  • Have businesses/enterprises domiciled and operational in Nigeria?
  • Has not been convicted of any financial crime in the last 10 years.
  • Has a valid Bank Verification Number (BVN)
  • Possess Local Government Indigene Certificate
  1. Formal Business Enterprises (Youth Owned Enterprises)
    These are enterprises that are legal entities duly registered with the Corporate Affairs Commission (CAC).
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Documents Required:

  • 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.

Applicants currently enjoying NMFB loans, including the Targeted Credit Facility (TCF), Agribusiness/Small and Medium Enterprises Investment Scheme (AgSMEIS) loans, and beneficiaries of other government loan schemes that remain unpaid are also NOT ELIGIBLE TO PARTICIPATE.

Applicants shall undergo compulsory entrepreneurship training arranged or approved by the Federal Ministry of Youth and Sports Development.

Eligible Businesses

  • Technology/ Innovation;
  • Agriculture and related value chain;
  • Green Economy and Renewable energy sector;
  • Manufacturing,
  • Hospitality/Tourism;
  • Construction;
  • Logistics and supply chain;
  • Healthcare value chain,
  • Creative sector and
  • Trading and Services.
  • Others as may be determined by NYIF/CBN from time to time.
  • However, 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.

Types of Facilities

  • Term Loan(for asset acquisition/improvement)
    – Individual (Unregistered business) Shall be determined based on the activity/nature of project subject to the
    maximum of N250,000
    – Registered Businesses (Business name, Limited Liability, Cooperative, Commodity Association) Shall be determined by the activity/nature of the project subject to the maximum of N3.0 million (including working capital).
    Note: Immovable assets acquired with the loan must be registered with the National Collateral Registry (NCR)
  • Tenor– Maximum of 5 years depending on the nature of the business and the assets acquired.
  • Moratorium– Moratorium of up to 1 year may be allowed depending on the nature of the business and the assets acquired.
  • Interest Rate– The interest rate under the intervention shall be at not more than 5% per annum (all-inclusive).
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Application Procedure – The MYSD will collaborate with relevant stakeholders to identify potential training for training/mentoring. The youths that are duly screened (and undergo the mandatory training where applicable) shall be advised to log on to the portal provided by the NMFB to apply for the facility.

 


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