Nigeria Youth Investment Fund (NYIF) Guidelines, Online Form, Shortlist

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1.0 Introduction

The Nigerian Youth Employment Action Plan was developed by the Federal Ministry of Youth and Sports Development (FMYSD) as a built-in strategy to respond effectively to the youth employment challenge in Nigeria. The major objectives of the plan are to address fragmentation of youth initiatives that prevent assessment of impact, and to provide Nigeria youth with investment inputs required to build successful businesses that can become sustainable employers of labor and contributors to Nigeria’s development.

2.0 Objectives of the Scheme

2.1 Improve access to finance for youth and youth-owned enterprises for national development;

3.0 Target

The NYIF aims to financially empower Nigeria youth to generate at least 500,000 jobs between 2020 and 2023.

4.0 Seed Capital

The NIRSAL MFB window shall be funded with an initial take-off seed capital of N12.5 billion.

4.1 Participating Financial Institution

The eligible participating financial institution for the Scheme is NIRSAL Microfinance Bank (NMFB).

5.0 Eligibility Criteria

5.1 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:

  • Have business/enterprises domiciled and operational in Nigeria.
  • Has not been convicted of any financial crime in the last 10 years.
  • Has a valid Bank Verification Number (BVN)
  • Possess Local Government Indigene Certificate.

5.1 Formal Business Enterprises (Youth Owned Enterprises)

These are enterprises that are legal entities duly registered with the Corporate Affairs Commission (CAC).

  • Business questionnaire;
  • List of Directors with BVN nos.;
  • Evidence of regulatory approvals (where applicable);
  • Tax Identification Number (TIN).

5.3 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.

5.4 Training

Applicants shall undergo a compulsory entrepreneurship training arranged or approved by the Federal Ministry of Youth and Sports Development.

5.5 Eligible Activities/Businesses

Legally allowed activities in the sectors or focal areas listed below shall be eligible:

  • Agriculture and related value chain;
  • Green Economy and Renewable energy sector;
  • Manufacturing,
  • Hospitality/Tourism;
  • Construction;
  • Logistics and supply chain;
  • Healthcare value chain,
  • Creative sector and
  • Trading and Services.
  • Others as may be determined by NYIF/CBN from time to time.

6.0 Types of Facilities

6.1 Term Loan (for asset acquisition/improvement)

  • Individual (Unregistered business)
  • Shall be determined based on activity/nature of project subject to the maximum of N250,000
  • Registered Businesses (Business name, Limited Liability, Cooperative, Commodity Association shall be determined by activity/nature of project subject to the maximum of N0 million (including working capital).

6.1.1 Tenor

Maximum of 5 years depending on the nature of the business and the assets acquired.

6.1.2 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).

6.0 Loan Application Procedure

6.1 Application Procedure

The MYSD will collaborate with relevant stakeholders to identify potential training for training/mentoring.

6.2 Processing/Approval

Upon satisfactory appraisal of application, NMFB shall apply for release of funds in respect of approved individuals/enterprises from the NYIF and CBN.

7.0 Collateral Requirement

The NMFB will leverage on the General Standing Instruction (GSI) as collateral.

8.0 Principal Repayment

Repayment shall be made on instalment basis by the beneficiaries to the NMFB according to the nature of enterprise and the repayment schedule/work plan provided and agreed at the application processing stage.

11.0 Equitable Participation

To ensure equitable participation and even access to finance by the youth across the country, applications will be batched according to State and Local Government Areas (LGA) of applicants. The Bank promotes gender parity, therefore the female entrepreneurs are encouraged to apply.

12.0 Project Management Office (PMO)

The Project Management Office shall be established by the Federal Ministry of Youth and Sports Development which will work with NIRSAL MFB on applicant screening, project monitoring and reporting, among others.

13.0 Monitoring and Reporting

There shall be joint monitoring of projects financed under the Scheme by the NMFB and PMO on periodic basis. Each party is to be responsible for the expenses incurred by its staff on such assignments.

14.0 Responsibilities of Stakeholders

In order to achieve the desired objectives of the program, the responsibility of the stakeholders shall include:

15.0 The Central Bank of Nigeria

15.1 The CBN shall:

  1. Serve as member of the Steering Committee of the NYIF;
  2. Articulate clear guidelines for the implementation of the NI RS A L wi nd o w o f th e NY IF ;

15.2 Federal Ministry of Youth and Sports Development (FMYSD)

The Federal Ministry of Youth and Sports Development shall:

  1. coordinate the overall implementation, including sensitization, mobilization and monitoring of the programme;

15.3 Federal Ministry of Finance, Budget and National Planning (FMFBNP)

The FMFBNP shall:

  1. Ensure the payment of interest rate differential to the CBN, where applicable.

15.4 NIRSAL Microfinance Bank (NMFB)

The NMFB shall:

  1. Comply with the guidelines of the program;
  1. Keep accurate records of all applicants in a format to be agreed with the PMO;
  2. Prepare periodic reports to the CBN and FMYSD.

15.5 Beneficiaries

Beneficiaries shall:

  1. Keep up-to-date records of their activities under the Scheme;
  1. Repay their loans as and when due.

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