SAN FRANCISCO, December 27, (THEWILL) – The Central Bank of Nigeria has disclosed the eligible beneficiaries and businesses/activities for the N75 billion Youth Investment Fund it recently launched.
The Federal Executive Council approved the establishment of the fund for three years (2020–2023) to assist the Nigerian youth with much-needed funds for their businesses.
In its framework for the implementation of the scheme, the apex bank also identified the applicants not eligible to benefit from the fund.
It said the scheme is aimed to financially empower Nigeria youth to generate at least 500,000 jobs between 2020 and 2023.
According to the framework, NIRSAL Microfinance Bank (NMFB), the financial institution to manage the scheme, will be funded with an initial take-off seed capital of N12.5 billion.
The CBN however said that both formal and informal business enterprises will benefit from the scheme.
For individuals or sole proprietors of informal enterprise to be eligible, they must fulfil 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.
For the formal business enterprises (Youth Owned Enterprises), that are legal entities duly registered with the Corporate Affairs Commission (CAC), the following documents are required:
(i) Evidence of registration with the 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).
“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”, the CBN said.
It, however said that beneficiaries of other government loan schemes that remain unpaid as well as applicants currently enjoying NMFB loans, including the Targeted Credit Facility (TCF), Agribusiness/Small and Medium Enterprises Investment Scheme (AgSMEIS) loans that remain unpaid ”are not eligible” to apply.
According to the CBN, all legal activities/ businesses in the sector of “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”, shall be eligible:
It said others may be determined by NYIF/CBN from time to time.
It however noted 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.
The CBN added that individuals with unregistered businesses can get up to N250,000 loan while registered businesses can get up to N3 million (including working capital) with not more than 5 per cent per annum interest rate.
About the Author
