What you should know and how to get the Nigeria Youth Investment Fund [NYIF]
July 16, 2021
Nigeria Youth Investment Fund – The youth undoubtedly forms the greater part of any workforce in the world, however, the continuous decline in the ability of the Nigerian youths to be gainfully employed has been a cause for great concern.
One cannot turn a blind eye to the fact that there are more disjointed Nigerian youths being unleash into the labor market on yearly basis by the Nation’s ivory towers, wherein a means to survive has become a mirage given the rate of unemployment.
Any responsible government in the face of this challenge will device a means to ameliorate the unemployment situation by providing an alternative source of income for these teaming youths who are ready to take such opportunities line, hook, and sinker.
It’s on this note that the Nigerian government came up with the “Nigerian Youth Investment Fund” to assist the teaming youths into becoming useful to themselves, the immediate societies and the country at large.
What is this Nigeria Youth Investment Fund all about?
The Nigerian Youth Investment fund was set up as the initiative of the Federal Ministry of Youth and sports Development (FMYSD) duly funded by the Central Bank of Nigeria (CBN) through Nirsal Microfinance bank (NMFB) to help unemployed but enterprising youths with a financial aid to support and drive their enterprises profitably.
In this scheme eligible youths/candidates have a lifeline to access up to N3million naira with a flexible repayment plan spread across 5 years.
In its forecast, the scheme will generate over 500,000 jobs between 2020 and 2023 in view.
Objectives of the Nigeria Youth Investment funds (NYIF)
- To improve access to finance for youth and youth owned enterprises, geared at national development since it will definitely drive the economy.
- To generate the much yearned employment for the teaming youths, which as well should curb the bane of youth restiveness.
- To train and boost the knowhow and managerial Capacity of the youths, subsequently develop their potentials to take over the future large corporate organization.
Who can apply for this fund/eligibility?
Well, individuals and non-registered businesses are at liberty as well registered businesses.
Individual and non-registered businesses
These persons include,
- Youths within the age of 18-35 years
- Such youth must have a valid BVN and verifiable ID card as valid tools
- You should be able to provide a complete questionnaire and a business plan summary showing the enterprise features and viability
- You ought to have an Entrepreneurship training certification from FMYSD Entrepreneurship Development Institutes (EDIs).
For registered businesses
- Formal business enterprises specifically youth owned enterprises, should be registered with Corporate Affairs commission (CAC)
- Business plan summary/completed questionnaire should be made available
- Valid BVN of directors
- Provision of Tax Identification Number
- Entrepreneurship Training Certificate from FMYSD EDIs.
How the loan process/how to obtain this loan
1. Attend the training
As an applicant you are required to attend a compulsory entrepreneurship training with an approved Federal Ministry of Youth and Sports Development (FMYSD) EDIs.
2. Apply for the loan.
Successfully trained prospective applicants proceed to NIRSAL Microfinance bank (NMFB) portal; nyif.nmfb.com.ng to apply for the loan.
3. Submit your application
Eligible applicants are to submit applications on NMFB’s portal
4. approval phase
NMFB conducts loan assessment in line with Risk Assessment Criteria and program guideline, they make appropriate decision and for forward recommended applicants to CBN for final approval.
5. Loan is disbursed finally
CBN reviews applications and gives final approval for disbursement to NMFB.
Types of businesses supported
- Technology and innovation
- Agriculture and other close value chain
- Green economy and renewable energy sector
- Hospitality and tourism
- Logistics and supply chain
- Healthcare and value chain
- Creative sector
- Trading and services, other forms may be included in the future.
Frequently asked questions
What is the loan amount?
For individual and non-registered businesses, they can access N250,000 while registered businesses can access N3million naira however dependent on activity and nature of the project for both classes of borrowers.
What is the loan tenor?
It’s subject to a max of 5 years, however dependent on the nature of business
What is the interest rate?
The interest rate is usually measured at 5% per annum
Is there moratorium?
There’s a moratorium of up to 1 year
Financial institution empowered for this scheme is the NIRSAL Microfinance bank.
Does it require collateral?
The Bank NMFB will leverage on the general on the general standing instructionr (GSI) as collateral.
What is the repayment plan?
This is usually made bade back to NMFB according to schedule and work plan subject to agreement at the application phase.
Can someone currently enjoying any CBN fund access this loan?
No, you cannot access this facility except previous CBN intervention loan has been paid in full.
What valid ID card do I need?
ID card such as; driver’s license, voter’s card, national ID card, and international passport are ok.
Read also: How to apply for trader moni loan in Nigeria
The Nigeria youth Investment Fund is a golden opportunity for enterprising youths to escape the bane of unemployment in its entirety, this will simply empower you alongside other targeted Nigerian youths measured at 500,000 before 2023.
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