The Central Bank of Nigeria (CBN) has listed the eligible beneficiaries and businesses/activities for the N75 billion Youth Investment Fund it recently launched.
Here is a checklist to determine whether you are eligible, to take advantage of the N75 billion Nigeria Youth Investment Fund.
For now, only N12.5 billion of the money is being made available in the programme, developed by Ministry of Youth and Sport, and to be managed by NIRSAL Microfinance, a CBN micro-finance outfit.
Now check whether you are qualified:
Eligibility Criteria
Informal Business Enterprises (Individuals and Sole Proprietors)
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. An eligible youth must fulfil the following conditions:
(i) Be a youth within the age bracket of 18-35 years.
(ii) Have business/enterprises domiciled and operational in Nigeria.
(iii) Has not been convicted of any financial crime in the last 10 years.
(v) Has a valid Bank Verification Number (BVN)
(vi) Possess Local Government Indigene Certificate.
Formal Business Enterprises (Youth Owned Enterprises)
These are enterprises that are legal entities duly registered with the Corporate Affairs Commission (CAC).
Documents Required:
(i) Evidence of registration with Corporate Affairs Commission (Certificate of Incorporation and Form CAC 2A);
(ii) Business questionnaire;
(iii) List of Directors with BVN nos.;
(iv) Evidence of regulatory approvals (where applicable);
(v) Tax Identification Number (TIN).
Cooperative societies duly registered with the relevant government authorities and members of Commodity Associations that fall within the eligible age bracket are also eligible to participate.
Ineligible Applicants
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.
Training
Applicants shall undergo a compulsory entrepreneurship training arranged or approved by the Federal Ministry of Youth and Sports Development.
Eligible Activities/Businesses
Legally allowed activities in the sectors or focal areas listed below shall be eligible:
(i) Technology/ Innovation;
(ii) Agriculture and related value chain;
(iii) Green Economy and Renewable energy sector;
(iv) Manufacturing,
(v) Hospitality/Tourism;
(vi) Construction;
(vii) Logistics and supply chain;
(viii) Healthcare value chain,
(ix) Creative sector and
(x) Trading and Services.
(xi) Others as may be determined by NYIF/CBN from time to time.
However, preference shall be given to enterprises that will support the growth of priority sectors, specifically those identified by the Economic and Recovery Growth Plan ERGP and the Nigerian Youth Employment Action Plan.
Types of Facilities
Term Loan (for asset acquisition/improvement)
(i) Individual (Unregistered business)
Shall be determined based on activity/nature of project subject to the maximum of N250,000
(ii) Registered Businesses (Business name, Limited Liability, Cooperative, Commodity Association shall be determined by activity/nature of project subject to the maximum of N3.0 million (including working capital).
Note:
Imovable assets acquired with the loan must be registered with the
National Collateral Registry (NCR)
Tenor
Maximum of 5 years depending on the nature of the business and the assets acquired.
Moratorium
Moratorium of up to 1 year may be allowed depending on the nature of the business and the assets acquired.
5.0 Interest Rate
Interest rate under the intervention shall be at not more than 5% per annum (all inclusive).
Read the whole details here:NYIF implementation Framework final Sept_30_2020
Here is also the link to the NYIF portal:
https://nyif.nmfb.com.ng/Applicants/New
