by The aim of the Youth Empowerment Fund is to fix the triple-barreled constraints of insufficiency, high cost and insufficient term of capital usually encountered by youth entrepreneurs and startups. It presents credit of up to 3 million naira to qualified youth or N10 million to groups of three to five youths at an interest rate of less than 10 per cent per annum.
The tenor largely relies on project complexity and cash flow but is between one year for a working capital loan and three years for a term loan.
This was in recognition of the fact that there was no better component of the Nigerian people other than the youths to drive the country to its much-needed economic recuperation and diversification.
During the third quarter of 2015, the National Bureau of Statistics (NBS) revealed that of the 36.3 million youths depicting 48% of the nation’s workforce, 13.6 million or 37.7% of them were either jobless or underemployed. This situation could not be permitted to fester given that a large number of the youths have very bright ideas and great dreams but are restrained by inadequate financial funding.
The Youth Empowerment fund seeks to fix the triple-barreled conditions of insufficiency, high cost and insufficient term of capital always encountered by youth entrepreneurs and startups. It gives credit of up to N3 million to eligible youth or N10 million for groups of 3 – 5 youths, Interest rate is 9% per annum.
Tenor broadly depends on project complexity and cash flow but is between 1 year for a working capital loan and 3 years for a term loan. The collateral conditions are pretty simple: academic and NYSC certificates, third party guarantees and other transferable assets.
The target beneficiaries of the program are members of the National Youth Service Corps (NYSC), non-NYSC members (but not more than five years after your service year), those who own a verifiable tertiary institution certificate, and craftspeople with First School Leaving Certificate or a specialised certificate or accredited proficiency certificate from the National Board for Technical Education (NBTE), whichever is appropriate. Benefactors of the scheme can be urged to migrate to other CBN interventions to obtain more funding if they properly utilise the YEDP facility.
The Guidelines for the programme demonstrate that activities eligible for financing among others include startups and expansion projects in agricultural value chains (fish farming, poultry, snail farming, etc.), cottage Industry, creative industry (tourism, arts and crafts) and Information and Communications Technology (ICT).
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What are the Requirements for this Grant?
In the NYIF framework, the CBN had listed the businesses and activities that are legally permitted to be qualified to participate in the project. These include technology/invention, agriculture and its affiliated value chain, green economy and the renewable power sector.
The Guidelines for the programme demonstrate that activities eligible for financing among others include startups and expansion projects in agricultural value chains (fish farming, poultry, snail farming, etc.), cottage Industry, creative industry (tourism, arts and crafts) and Information and Communications Technology (ICT).
Others are manufacturing, hospitality/tourism, building, logistics and supply chain, healthcare value chain, the creative sector, trading and services, as well as others that would be approved by the CBN from time
Also, it noted that the benefactors of other government loan schemes that remain outstanding/unpaid are also not eligible to partake. The tenor of the loan, according to the framework, is a maximum of 5 years depending on the type of the business and the property acquired with an interest rate of 5% per annum.
Who is Eligible for the Youth Empowerment Fund?
- This loan is for youth who are between the ages of 18 to 35 years.
- Another eligibility criterion is that interested persons/applicants should have an Approved FMYSD EDIs Training Certificate
- This loan is meant for enterprise, therefore, an applicant needs to have an existing business.
- The said business should be registered with the Corporate Affairs Commission and therefore recognised by law.
- Your business must have a Tax Identification Number (TIN)
How to Apply for the Youth Empowerment Fund
To apply for the Youth Empowerment Fund, kindly follow the steps below:
- Fill out an application form online or get an application form from the YEN office. Kindly note that the application is free of charge.
- You must have two (2) recent passport photographs.
- You must have a photocopy of your National Identity Card or NIN slip.
- A photocopy of a utility bill – either electricity, water or any other government utility bill.
- All original copies of the above documents must be presented for verification purposes.
- Applicants must present two (2) guarantors: fill out a guarantor form and two passport photographs of the guarantors (for LOANS only, not applicable to GRANTS)
- Submit a business summary or a proposal not exceeding three pages to the YEN office or e-mail to smescheme@youthempowermentnigeria.org
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Conclusion
In making your application for the Youth Empowerment Fund, kindly ensure that your application form is completely and adequately filled otherwise your application will not be attended to. Also know that double-entry of the application form will lead to automatic disqualification of the applicant. The application will be processed within ten (10) working days of receiving your business proposal. An appointment date will be communicated to the successful applicants for the purpose of defending their proposals. All successful applicants will get a cash loan/grant within ten (10) working days after the appointment date.
