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CBN expects 75,000 jobs annually from entrepreneur graduates of universities

… Releases guidelines for Tertiary Institutions Entrepreneurship Scheme

The CBN on Wednesday released the guidelines for the Tertiary Institutions Entrepreneurship Scheme (TIES), expecting 75,000 jobs annually from entrepreneur graduates of universities and polytechnics.

The guidelines, which outline the operational modalities, target 25,000 annually of gradpreneur-led innovative start-ups and businesses with access to finance under the Scheme.

The Scheme is designed to create a paradigm shift among undergraduates and graduates from the pursuit of white-collar jobs to a culture of entrepreneurship development for economic development and job creation. The Scheme thus aims to provide an innovative financing model that will create jobs, enhance the entrepreneurial ecosystem and support economic growth and development.

Female-gradpreneurs financed as a percentage of total projects financed under the Scheme is expected to reach 50 percent per annum.

According to the guidelines, priority will be given to innovative entrepreneurial activities with high potentials for export, job creation and transformational impact.

The guidelines classified the participants under the term loan component, into two categories of tier 1 individual projects with loan limit of N5 million and tier 2 class of company/partnership project with loan limit of N25 million.

Read also: CBN finances Lagos blue line rail project with N110bn

The partnership or company shall apply as a registered business with the Corporate Affairs Commission (CAC) and certified true copies (CTC) of relevant forms submitted.

Collateral requirements for this class of participants include duly signed Global Standing Instruction (GSI) by member of the partnership or company; and third party guarantee from a senior federal/state civil or public servant (not below level 10 and not having less than 5 years to retire from service), clergy of note and reputation or recognized traditional ruler.

For individual projects, the applicant shall apply as a business entity registered with the Corporate Affairs Commission (CAC) and certified true copies (CTC) of relevant forms submitted; Bank Verification Number (BVN); First degree certificate (BSc/HND or its equivalent); National Youth Service Certificate (NYSC) discharge or exemption certificate; and Certificate of Participation issued by polytechnics and universities evidencing entrepreneurship training.

The CBN said the take-off capital will be sourced from the Agribusiness / Small and Medium Enterprise Investment Scheme (AgSMEIS), adding that trading activities shall not be eligible for financing under the Scheme.

Activities to be covered under the scheme shall include innovative start-ups and existing businesses owned by graduates of Nigerian polytechnics and universities in the following areas: Agribusiness – production, processing, storage and logistics; information technology – application/software development, business process outsourcing, robotics, data management; creative industry – entertainment, artwork, publishing, culinary/event management, fashion, photography, beauty/cosmetics; Science and technology – medical innovation, robotics, ticketing systems, traffic systems, renewable energy, waste management; and any other activity as may be determined by the CBN from time to time.

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