The Nigerian Youth Investment Fund

How Nigerian Youths Can Access The Funds And Grow Their Businesses

By
Rosemary Egbo
-
496
7166

The percentage of unemployed Nigerian youth rose to almost 14% according to the International Labour Organization. There’s no denying that Nigerian youths are hardworking, innovative, skilled, enterprising, and talented, but many obstacles hinder them from optimizing their full potentials.

Among the significant reasons for the increase in the unemployment rate is the lack of funding. Many Nigerian youths have amazing ideas that won’t only create employment opportunities for themselves, but for other youths as well.

Funding is an essential resource for any enterprise, a crucial aspect of building and sustaining a business for growth and maximum profitability. Luckily, there are several available sources of funds for small business owners in Nigeria.

Considering the high-interest rates charged by Nigerian banks, business owners – startups and small businesses, find it hard to raise the required funds to get their businesses off the ground, especially within Nigeria – Sources Of Funding For Small Business Owners in Nigeria.

The federal government of Nigeria in her efforts at meeting the demands of the Nigerian youth for a simplified, SME friendly source of business funds for youths have decided to create the Nigerian Youth Investment Fund.

Criteria for Applying for the Nigerian Youth Investment Fund 

To apply for the Nigerian Youth Investment Fund, applicants must meet the following requirements:

  1. Applicants must not be less 18 years or older than 35 years.
  2. National ID card, INEC registration card or international passport
  3. Bank Verification Number (BVN)
  4. The idea must be economically viable
  5. Graduate applicants must have completed NYSC
  6. Non-graduates must have a form of identification
  7. Provide one guarantor
  8. The entrepreneur must have a company that is registered with the CAC
  9. Applicants must have a well-structured business plan that shows the following:
    • Overhead cost
    • Projected Profit margin
    • Target market
    • Business goals

Suggested: 5 Mentalities Nigerian Youth Must Drop To Succeed

Two Major Reasons for Establishing the Nigerian Youth Investment Fund (NYIF)

In a bid to increase the employment rate by making funds available to enterprising youths, the Federal Executive Council led by President Muhammad Buhari approved the sum of N75 billion for the establishment of the Nigerian Youth Investment Fund (NYIF) for the next three years on the 22nd of July 2020. 

Mr. Sunday Akin Dare, the Minister of Youth and Sports orchestrated the memo that led to the establishment of the Nigerian Youth Investment Fund (NYIF). According to Thisday, the Minister informed the Council that “Nigeria can make one quantum leap to increase its GDP dramatically and per capita realities. But such can only happen if the country begins to invest in the youth through the establishment of a specialized fund that provides accommodating pathways to accessing credit, grants and needed funds for entrepreneurship.”

Youth Bank

The Nigerian Youth Investment Fund, unlike other government initiatives, is meant to serve as a bank for innovative Nigerian youth. This program is to support and fund ideas, innovations, talents, SMEs, skills, and other enterprising activities through soft loans and credits. From the meeting held by the Federal Executive Council, the Council agreed that the CBN, Ministry of Finance, Budgeting, and National Planning are to source for the needed funds. 

Increase in Nigeria’s GDP and Per Capita

Any country that has a thriving economy is a country that has financially empowered the youths. Nigeria’s GDP is where it is today because the youths have been ignored for so long. Innovative ideas struggle to materialize and even when they do, they are often choked by the many challenges of running a business in Nigeria. 

The provision of funds for entrepreneurs that are willing to start and grow businesses won’t only have positive effects on our economy, but also the society. Positively engaged minds won’t have the time to conceive and perpetuate evil and become menaces to the nation.

The creation and smooth operation of the Nigerian Youth Investment Funds would truly increase Nigeria’s GDP per capita.

Per capita gross domestic product (GDP) is a metric that breaks down a country’s economic output per person and is calculated by dividing the GDP of a country by its population – Investopedia

Some Frequently Asked Questions on The Nigerian Youth Investment Fund (NYIF)

Suggested: 5 Mentalities Nigerian Youths Must Drop To Succeed

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Quick Summary

Prefer the short version? Here is a concise recap of the key ideas in this article.

Criteria for Applying for the Nigerian Youth Investment Fund  To apply for the Nigerian Youth Investment Fund, applicants must meet the following requirements: Applicants must not be less 18 years or older than 35 years.National ID card, INEC registration card or international passportBank Verification Number (BVN)The idea must be economically viableGraduate applicants must have completed NYSCNon-graduates must have a form of identificationProvide one guarantorThe entrepreneur must have a company that is registered with the CACApplicants must have a well-structured business plan that shows the following:Overhead costProjected Profit marginTarget marketBusiness goals Suggested: 5 Mentalities Nigerian Youth Must Drop To Succeed Two Major Reasons.

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