NIRSAL Microfinance Bank (MFB) has been chosen as the sole eligible participating financial institution for the disbursement of the N75 billion Nigeria Youth Investment Fund (NYIF), the Central Bank of Nigeria (CBN) said in the framework released on Wednesday.
Consequently, the CBN said on Wednesday that the NIRSAL MFB window shall be funded with an initial take-off seed capital of N12.5 billion.
The NYIF aims to financially empower Nigeria youth to generate at least 500,000 jobs between 2020 and 2023.
The Federal Executive Council on the 22nd of July, 2020 approved the sum of N75 billion for the establishment of the Nigeria Youth Investment Fund for the period of 2020 – 2023 dedicated to investing in the innovative ideas, skills and talents of Nigerian Youth, and to institutionally provide the youth with a special window for accessing much needed funds, finances, business management skills and other inputs critical for sustainable enterprise development.
Objectives of the scheme include improve access to finance for youth and youth-owned enterprises for national development; generate much-needed employment opportunities to curb youth restiveness.
It is also expected to boost the managerial capacity of the youth and develop their potentials to become the future large corporate organizations.
Eligibility criteria for accessing the fund include, a youth that is within the age bracket of 18-35 years, a youth that has 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), and possess Local Government Indigene Certificate.
The framework stated that 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.
A huge percentage of youth are engaged in the informal sector. Accordingly, the NYIF will facilitate the transition of informal enterprises owned by youth into the formal mainstream economy where they can be supported comprehensively, build a bankable track record; and be accurately captured as active participants in economic development.
