By Elizabeth Adegbesan
The Central Bank of Nigeria (CBN) has released the framework for NIRSAL Microfinance Bank (NMFB) to commence the disbursement of the N75 billion Nigeria Youth Investment Fund (NYIF).
The Federal Executive Council (FEC) on the 22nd of July, 2020 approved the money for the period of 2020 – 2023.
The fund is dedicated to investment in the innovative ideas, skills and talents of Nigerian youths between the ages of 18-35 years, and to institutionally provide them with a special window for accessing much needed funds, finances, business management skills and other inputs critical for sustainable enterprise development.
The framework among other things stated that NYIF aims to financially empower Nigeria youth to generate at least 500,000 jobs between 2020 and 2023.
It also noted that informal business enterprises (individuals and sole proprietors) and formal business enterprises (youth owned enterprises) are eligible to apply for the loan.
However, the framework mentioned 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.
Furthermore, it noted that beneficiaries of other government loan schemes that remain unpaid are also not eligible to participate.
The loan tenor, according to the framework, is a maximum of 5 years depending on the nature of the business and the assets acquired with an interest rate of 5 percent per annum.