The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative, offering loans of between N200,000 and N2 million to young entrepreneurs across Nigeria.
The Independent Mirror reports that the initiative, launched in Abuja on Wednesday, targets 500,000 young entrepreneurs and is designed to address the financing challenges facing micro, small and medium-sized businesses.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the scheme would help young Nigerians start, sustain and expand their businesses through access to affordable credit.
Oyedele described the initiative as a strategic intervention aimed at unlocking the entrepreneurial potential of young Nigerians and accelerating inclusive economic growth.
According to him, eligible Nigerians between the ages of 18 and 35 can access the facility based on their credit behaviour, cash flow and repayment capacity.
He said the scheme was designed to address the challenges faced by young entrepreneurs who are often excluded from formal lending due to requirements such as incorporation, audited accounts and collateral.
“More than 90 per cent of Nigeria’s MSMEs are micro enterprises built around individuals, from the tailor to the ride-hailing driver, the fashion designer, the caterer, content creator, the mechanic, and the young farmer.
“Many remain excluded from formal finance because traditional lending demands incorporation more often than not, audited accounts and collateral that early-stage entrepreneurs simply do not have and cannot provide,” Oyedele said.
He added that the loans would be delivered through regulated financial institutions.
“Through YOUTHCRED for Entrepreneurs, eligible Nigerians aged 18 to 35 can access financing from N200,000 to N2 million, based not on inherited wealth or collateral, but simply on responsible credit behaviour, cash flow and repayment capacity delivered through regulated financial institutions,” he said.
The minister, however, urged beneficiaries to regard the facility as a loan and not a government entitlement.
He said prompt repayment would ensure the sustainability of the programme and enable more young entrepreneurs to benefit.
Oyedele also said responsible use of the facility would help businesses grow while promoting financial discipline among beneficiaries.
Earlier, the Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP), Uzoma Nwagba, said the corporation had facilitated more than N47 billion in consumer credit to 301,000 Nigerians over the past two years.
He said the corporation had maintained zero per cent non-performing loans during the period.
Nwagba explained that YOUTHCRED for Entrepreneurs was the third phase of the programme’s rollout, following earlier interventions targeting National Youth Service Corps members and employed youths.
He said the corporation planned to expand the programme to 500,000 beneficiaries and eventually reach one million Nigerians before the end of the year.
“Hardworking young Nigerians deserve structured credit, not charity. More than 90 per cent of our MSMEs trade in the name of the person who built them, so that is exactly how we built this credit line—for the individual, not just the entity.
“Every naira is tied to eligibility, repayment discipline and business growth because when builders win, Nigeria wins,” he said.
The Ministers of Budget and Economic Planning, Abubakar Bagudu; Youth Development, Ayodele Olawande Wisdom; and Women Affairs, Imaan Sulaiman-Ibrahim, also commended the initiative.
They described the programme as a major step towards expanding financial inclusion, empowering young Nigerians and promoting inclusive economic growth.
The YOUTHCRED for Entrepreneurs initiative is the latest phase of the Federal Government’s consumer credit expansion programme being implemented through CREDICORP.
The programme is aimed at providing affordable credit to young entrepreneurs who may be unable to access conventional bank loans due to collateral and other lending requirements.
The Federal Government said improved access to finance for micro, small and medium-sized enterprises remains central to its efforts to promote entrepreneurship, create jobs and drive economic growth under the Renewed Hope Agenda.
Kano Times.
