Nigeria has one of the highest poverty rates in the world and a large proportion of them are young people. As a result, the government has developed various empowerment programs and funding schemes to encourage entrepreneurship. A thriving business is one of the fastest ways to get rid of unemployment in the country, and the solution lies in the Nigerian youth investment fund. Here's everything you need to know about the Nigerian Youth Investment Fund.
What are the goals of the Nigerian Youth Investment Fund?
The government has developed a Nigerian Youth Investment Fund to target Nigerian youth and aims to create at least 500,000 jobs between 2020 and 2023. According to the official release, the objectives of the scheme are:
- Improve access to finance for youth and youth as well as youth-owned national development
- Create more job opportunities to curb youth sensitivities
- Encourage the managerial capacity of young people and develop their potential to become the future of large corporate organizations.
- This scheme is funded with an initial take-off capital of N2.5 billion.
What are the eligibility criteria for the Nigerian Youth Investment Fund?
To be eligible for this fund, you must meet the following eligibility criteria and documentation:
- A young person between 18 and 35 years of age
- Run and operate a registered business in Nigeria
- You may not have been convicted of any financial crime in the past 10 years
- Must have a valid Bank Verification Number (BVN)
- Get a Custom Certificate from the Local Government
In addition, you will need the following documents to register for the Nigerian Youth Investment Fund:
- Evidence of being registered with the Commission on Corporate Affairs
- Business Questionnaires
- List of business directors and their BVN numbers
- Regular proof of approval if any
- Tax Identification Number (TIN)
Nigerian Youth Investment Fund - Unqualified Applicants
You are not eligible to apply for the Nigerian Youth Investment Fund if you are currently a recipient of an NMFB loan. This loan includes the Targeted Credit Facility (TFC) and the Agribusiness / Small and Medium Enterprise Investment Scheme (AGSMEIS). In addition, you cannot apply as a recipient of other government loan schemes.
Which businesses are eligible to enjoy the Nigerian Youth Investment Fund?
The Nigeria Youth Investment Fund is accessible through the following businesses:
- Technology and innovation
- Agriculture and related value chains
- Green economy and renewable energy sector
- Construction
- Hospitality and tourism
- Construction
- Logistics and supply chain
- Healthcare value chain
- Creative field
- Business and services
- NYIF and CBN may add others from time to time.
However, keep in mind that priority is given to enterprises that support the development of priority sectors. Businesses are identified by the Economic Recovery Growth Plan (ERGP) and the Nigerian Youth Employment Action Plan.
Is there any other allowance?
Yes, there is one. They direct all applicants to receive enterprise training, which is administered and approved by the Federal Ministry of Youth and Sports Development.
What are the conditions of the Nigerian Youth Investment Fund?
The terms and conditions of the Nigeria Youth Investment Fund are as follows:
Loan rate: For registered individual businesses, the stated amount is a maximum of N250,000, depending on the activity and nature of the project. Registered businesses, on the other hand, are subject to a maximum loan amount of N3.0 million, including working capital. It depends on the nature and activity of the project.
Tasks: The loan is subject to a maximum of 5 years, depending on the nature and nature of the business.
Interest rate: The interest rate will not exceed 5% per annum.
Mortuary: The plan allows for a waiver of up to 1 year depending on the delicacy and the type of property acquired.
Bank: The financial institution eligible for this scheme is Nirsal Microfinance Bank (NMFB).
Congenital: The NMFB will inherently benefit from General Standing Instruction (GSI).
Payment: The NMFB will be repaid by the beneficiaries as per the repayment period and work plan agreed upon during the application process.
How do I apply for the Nigeria Youth Investment Fund?
The procedure for applying for this loan is very simple. To apply, simply go to the official website at www.nyif.nmfb.com.ng and follow the procedure. Upon successful credit checks, processing and verification, NMFB will release funds to approved entrepreneurs.
Conclusion
The scheme is designed to provide funds to enable the youth to pursue their dreams in entrepreneurship. If you are a business owner, we encourage you to apply for the betterment of yourself and your economy.
