Approximately, 500,000 youth will benefit from the N75 billion approved by the federal government under platform of the Nigerian Youth Investment Fund (NYIF).
Sunday Dare, Nigeria’s minister of youth and sports development, on Wednesday publicized that the federal executive council (FEC) approved the inauguration of NYIF to be market at N75billion.
The fund is committed to investing in the innovative ideas, skills, talents and enterprise of the Nigerian youth with the objective of transforming them into enterprenuers.
In an official statement released by his media office on Friday, the minister said the NYIF targets 500,000 youth every year.
Dare stated that a mi of N25 billion will be dispensed each year for the next three years, equalling N75 billion.
He further explained that for the remaining part of 2020, a start up amount of N12.5 billion will be needed to initiate the NYIF.
The minister also said that the funding, which is part of President Muhammadu Buhari’s plan to tackle the problem of unemployment in Nigeria, will be sustained by subsequent administrations.
“The Nigerian Youth Investment Fund (NYIF) a ringfenced funding that will strictly cater to the investment needs of persons between the ages of 18 and 35 years old,” the statement read.
“NYIF joins the slew of youth focused programs already in place by the Muhammadu Buhari-led Federal Government as part of a National Plan to combat youth unemployment and drive innovation, fuel entrepreneurship as well as support youth SMEs.
“NYIF provides a single window of Investment Fund for the youth, thereby creating a common bucket for all Nigerian youth to access Government support.
“Providing a less cumbersome access to credit and finance for the average Nigerian youth with an approved work plan or business idea will help lift thousands of the youth out of poverty and birth a whole generation of entrepreneurs.
“The fund aims to reach 500,000 youth annually between 2020 and 2023. Each fund approval will range from N250,000 to N50,000,000, with a spread across group applications, individual applications, working capital loans set at 1 year and term loans set at 3 years with single digit interest rate of 5%.”
The honorable minister said that outlaying the fund will be via diverse channels, which will include micro credit organisations across the country under the Central Bank of Nigeria (CBN) backed by the Bank of Industry, fintech organisations and venture capital organisations registered with the apex bank of the country.
According to the Sunday Dare, the ministry of finance, budget and national planning and the CBN will cater for the initial financing for NYIF, while youth looking up to benefit from the scheme must have genuine business ideas and registered business companies.
He made it clear that such persons must be a Nigeria citizen and must be able to provide accepted means of identification and guarantors.