Originally published at: https://www.ogbongeblog.com/nigeria-youth-investment-fund-application-requirements-eligibility-and-how-it-works.html
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. The NYIF which aims at improving access to finance for youth-owned enterprises wants to generate at least 500,000 jobs in Nigeria between 2020 to 2023.
Nigerian youths within the ages of 18 – 35 can access up to three million Naira (250,000 Naira for individual or unregistered businesses) at an all-inclusive interest rate of five per cent per annum with a maximum tenor of five years and 12 months moratorium.
The Federal Ministry of Youth and Sports Development (FMYSD) is the lead implementation entity and is responsible for budgetary provisions and for funds mobilization while the eligible participating financial institution for the Scheme is NIRSAL Microfinance Bank (NMFB)
Nigeria Youth Investment Fund : How It Works
STEP 1
Submit An Application
Eligible applicants submit applications successfully on NMFB’s portal.
STEP 2
Get Trained
Applicants to attend a compulsory entrepreneurship training with an approved Federal Ministry of Youth & Sports Development (FMYSD) EDIs
STEP 3
Apply For Loan
Successfully trained prospective applicants proceed to NIRSAL Microfinance Bank (NMFB) portal to apply for the loan.
STEP 4
Approval
NMFB conducts loan assessment in line with Risk Assessment Criteria and programme guideline, make appropriate decision and forward recommended applications to CBN for final approval.
STEP 5
Disbursement
CBN reviews applications and gives final approval for disbursement to NMFB
Nigeria Youth Investment Fund Eligibility and Application Requirements
Both informal business enterprises (Individuals, sole proprietors, unregistered businesses ) and formal business enterprises (youth owned registered businesses) will benefit from the Nigeria Youth Investment Fund according to the NYIF framework published by CBN for the implementation of the scheme.
Eligibility Criteria for Informal Business Enterprises (Individuals, Sole Proprietors)
An eligible youth must fulfil the following conditions:
- Be a youth within the age bracket of 18-35 years.
- Have business/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
Note: Those with unregistered business can also apply)
Eligibility Criteria for Formal Business Enterprises
These are enterprises that are legal entities duly registered with the Corporate Affairs Commission (CAC). Criteria include :
- Duly registered formal business enterprises (Youth owned enterprises) with Corporate Affairs Commission (CAC)
- Provision of Business plan Summary / Or Completed Questionnaire
- Evidence of Training Certificate from approved FMYSD EDIs
- Valid Bank Verification Number (BVNs) of Directors
- Provision of Tax Identification Number (TIN)
- Evidence of regulatory approvals (where applicable)
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.
Ineligible Applicants for Nigeria Youth Investment Fund
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.
Eligible Activities/Businesses for Nigeria Youth Investment Fund
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;
(iv) Manufacturing,
(v) Hospitality/Tourism;
(vi) Construction;
(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.
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.