Federal Government of Nigeria Youth Investment Fund 2020 for young Nigerian Entrepreneurs-see Full Application Procedures, you are on Australia Minds-Welcome
AN INITIATIVE OF THE FEDERAL MINISTRY OF YOUTH AND SPORTS DEVELOPMENT FUNDED BY THE CENTRAL BANK OF NIGERIA
Nigerian Youth Investment Fund NYIF is a government initiative created to boost the Nigerian economy through leverage and access to finance for youths. The fund hopes to serve as a catalyst to unleash the potential of the youth and enable many of them build businesses that will increase the employment rate.
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 fragmentation of youth initiatives that prevent 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 on the 22nd of July, 2020 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 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.
- FMYSD is the lead implementation entity and is responsible for budgetary provisions and for funds mobilization.
- The NYIF aims to financially empower Nigeria youth to generate at least 500,000 jobs between 2020 and 2023.
– The NIRSAL MFB window shall be funded with an initial take-off seed capital of N12.5 billion.
Participating Financial Institution
The eligible participating financial institution for the Scheme is NIRSAL Microfinance Bank (NMFB).
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. An eligible youth must fulfill the following conditions:
(i) Be a youth within the age bracket of 18-35 years.
(ii) Have business/enterprises domiciled and operational in Nigeria.
(iii) Has not been convicted of any financial crime in the last 10 years.
(v) Has a valid Bank Verification Number (BVN)
(vi) Possess Local Government Indigene Certificate.
Formal Business Enterprises (Youth Owned Enterprises)
These are enterprises that are legal entities duly registered with the Corporate Affairs Commission (CAC). Documents Required:
(i) Evidence of registration with Corporate Affairs Commission (Certificate of Incorporation and Form CAC 2A);
(ii) Business questionnaire;
(iii) List of Directors with BVN nos.;
(iv) Evidence of regulatory approvals (where applicable);
(v) Tax Identification Number (TIN).
– 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.
– Moratorium of up to 1 year may be allowed depending on the nature of the business and the assets acquired.
– Interest rate under the intervention shall be at not more than 5% per annum (all inclusive).
Applicants shall undergo a compulsory entrepreneurship training arranged or approved by the Federal Ministry of Youth and Sports Development.
Legally allowed activities in the sectors or focal areas listed below shall be eligible:
(i) Technology/ Innovation;
(ii) Agriculture and related value chain;
(iii) Green Economy and Renewable energy sector;
(vii) Logistics and supply chain;
(viii) Healthcare value chain,
(ix) Creative sector and
(x) Trading and Services.
(xi) Others as may be determined by NYIF/CBN from time to time.
Types of Facilities
Term Loan (for asset acquisition/improvement)
(i) Individual (Unregistered business)
Shall be determined based on activity/nature of project subject to the maximum of N250,000
(ii) 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).
Note: Immovable assets acquired with the loan must be registered with the National Collateral Registry (NCR)
For More Information:
Visit the Official Webpage of the Nigeria Youth Investment Fund 2020