NIRSAL MFB Gets Framework For N75bn Youth Fund Disbursement
Funded by the Central Bank of Nigeria (CBN), the NYIF scheme was launched by the Federal Ministry of Youth and Sports Development (FMYSD) to provide investment loans to youths and youth-owned businesses in the country.
Individuals or non-registered businesses can access up to N250,000 in funding while youth-owned registered businesses can apply for up to N3 million. Granted loans will run for a maximum of 5 years and attract a 5% interest per annum.
It said the NYIF aimed to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.
It said this in its statement titled ‘Framework for the operation of the NIRSAL Microfinance Bank window of the Nigeria Youth Investment Fund’ released on Wednesday.
The CBN said the Nigerian Youth Employment Action Plan was developed by the Federal Ministry of Youth and Sports Development as a built-in strategy to respond effectively to the youth employment challenge in Nigeria.
The major objectives of the plan were to address fragmentation of youth initiatives that prevented assessment of impact, and to provide Nigerian youths with investment inputs required to build successful businesses.
This, according to the framework, will enable them to become sustainable employers of labour and contributors to Nigeria’s development. It said the NIRSAL MFB window would be funded with an initial take-off seed capital of N12.5bn.
The plan targeted young people between the ages of 18 and 35 years and detailed the needed actions required to support business establishment, expansion and consequent employment creation for youths in critical economic and social sectors.
It added that the fund would institutionally provide the youths with a special window for accessing the funds, finances, business management skills and other inputs critical for sustainable enterprise development.
The CBN said the FMYSD was the lead implementation entity and was responsible for budgetary provisions and for the mobilisation of the fund.