The Federal Government under the leadership of President Muhammadu Buhari has approved the creation of the N75 billion Nigerian Youth Investment Fund (NYIF), which has brought smileto the face of thousands of young Nigerians with majority ignorant of how to get this fund.
The investment fund which is believed could limit the rising rate of unemployment, and the general economic crisis which had now become bad due to the Coronavirus (COVID-19) pandemic, in the country.
Reference Daily News has gathered information as regards the procedures to get the facility and all you should know about the program.
The fundamental necessities to be noted by potential beneficiaries are:
- Having a fundable or bankable business idea.
- Fund will be made available to registered businesses only.
- Business owner must be a Nigerian
- Prospective beneficiary must have a current recognised means of identification
- Prospective beneficiary is expected to provide a guarantor.
According to the Ministry of Youth and Sports, “the safeguards built around some specifics being crafted around the fund will ensure that potential beneficiaries do not need to know anyone or be “connected” to access the fund.”, adding that all processes are handled by the Ministry.
It was further gathered that the program is designed to solve the investment needs of the young citizens between ages 18 and 35 years.
The Applications of Fund are acceptable from both individual businessmen and groups with common business entity and identity.
The Ministry of Finance, Budget and National Planning (MFBNP) and the Central Bank of Nigeria (CBN) will sponsor the financing ahead of the kick-starting of the Nigeria Youth Investment Fund (NYIF) which is part of the National Economic Sustainability Plan (NESP) approved recently by the Federal Executive Council (FEC) in the effort to tackle the adverse impact of the COVID-19 on Nigeria’s economy.
The amount of loan that can be awarded ranges from N250,000 to N50 million. The amount per beneficiary depends on the size of the business it is meant to fund.
However, Group applicants are expected to provide details of the units of members of the group requiring specific amount upon which the total amount would be determined.
The loan is also given either as a working capital loan set at one year or term loan set at three years with a single-digit interest rate of 5%.
Reports gathered further revealed that the federal government plans to disburse the loans in three tranches of N25 billion each year in the next three years. But it is expected that for the remaining parts of 2020, about N12.5 billion will be released to kick start the NYIF. It is expected that successive governments will keep the fund alive.
The mode of disbursement will be through various channels like Micro Credit Organisations across the country under the Central Bank of Nigeria, CBN, supported by the Bank of Industry, BoI, Fintech Organisations and Venture Capital Organisations registered with the CBN.