The Tertiary Institutions Entrepreneurship Scheme (TIES), an intervention scheme launched by the Central Bank of Nigeria (CBN), aims at harnessing the potential of graduate entrepreneurs from Nigerian polytechnics and universities.
It was developed in partnership with Nigerian polytechnics and universities, to harness the potential of graduate entrepreneurs by creating a paradigm shift from the pursuit of white-collar jobs to a culture of entrepreneurship for economic development and job creation.
Nigeria’s unemployment stood at 33.3 percent as of fourth quarter (Q4) 2020, with youth unemployment accounting for 42.5 percent, according to the National Bureau of Statistics (NBS).
Three verticals of TIES loan
TIES loan was designed to address three verticals – the Term Loan component, the Equity Investment component and the Development Grant Component.
While the Term Loan component provides direct credit opportunities to graduates of Nigerian polytechnics and universities of not more than seven years post-graduation; the Equity Investment Component is designed to support start-ups, existing businesses requiring expansion, and ailing businesses seeking resuscitation.
The third vertical – Developmental Grant Component – is aimed at raising awareness and visibility of entrepreneurship among undergraduates of Nigerian tertiary institutions. Under this vertical, polytechnics and universities in Nigeria are expected to compete in a national biennial entrepreneurship competition where undergraduates are presented by the tertiary institutions to pitch.
Target
The scheme is expected to create 75,000 jobs annually from entrepreneurial graduates of universities and polytechnics. It also targets 25,000 annually of gradpreneur-led innovative start-ups and businesses with access to finance under the Scheme. 50 per cent per annum, of female-gradpreneurs financed as a percentage of total projects financed under the Scheme.
Term loan components
On October 20, 2021, the CBN released the guidelines for the TIES, which 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.
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.
Read also: Can CBN’s TIES boost food production?
Collateral
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.
Activities approved for TIES loan
Activities to be covered under the Scheme include innovative start-ups and existing businesses owned by graduates of Nigerian polytechnics and universities from agribusiness to data management, creative industries, and any other activity as may be determined by the CBN from time to time.
How to apply
Interested applicants can apply on the dedicated online portal and provide all requisite documentation to support the application. They are also expected to be present for verification of original copies of submitted certificates and documents.
They are to submit business proposals and other documentation requirements, adhere strictly to the terms and conditions of the Scheme and avoid any forms of plagiarism in the project idea.
The beneficiaries are to utilize the funds for the purpose for which it was granted; present the business and its location for mapping/tagging, as well as monitoring and evaluation. They are to maintain accurate and up-to-date records available for inspection/verification by the CBN and monitoring team. They are to adhere strictly to the terms and conditions of the Scheme.
Exit Date
The Scheme shall be operated for a period of 10 years in the first instance, (not exceeding December 31, 2031) depending on the complexity of the project.
Given the huge number of graduates from tertiary institutions in the country without the commensurate employment opportunities in both the public and private sectors, Godwin Emefiele, governor of the CBN said it had become imperative that government, at all levels, puts in place policy measures to support entrepreneurial development among Nigerian youth.
He therefore charged the different tiers of government to play their respective roles in creating an enabling business ecosystem that supports innovation and enables the youth to unleash their entrepreneurial potential.
