The Nigerian Youth Investment Fund (NYIF) is an innovative Federal Ministry of Youth and Sports Development (FMYSD) initiative. It aims to support young Nigerian entrepreneurs by providing them with access to funds to start or expand their businesses.
The fund is supported by the Central Bank of Nigeria (CBN) and has an initial allocation of N75 billion approved by the Federal Government.
The NYIF targets young people between the ages of 18-35 and is dedicated to investing in Nigerian youths’ innovative ideas, skills, and talents to turn them into entrepreneurs, wealth creators, and employers of labor, thus contributing to national development.
This article will explore the various aspects of the Nigerian Youth Investment Fund, including its objectives, eligibility requirements, the application process, and benefits to the Nigerian youth.
About Nigerian youth investment fund
The Nigerian Youth Investment Fund (NYIF) initiative of the Federal Ministry of Youth and Sports Development (FMYSD) aims to invest in Nigerian youths’ innovative ideas, skills, and talents. The fund is supported by the Central Bank of Nigeria (CBN) and is dedicated to building sustainable businesses that can activate enterprises and create job opportunities in the country.
The NYIF targets young people between 18 and 35 and outlines the necessary actions to support the establishment, expansion, and employment creation of youth in critical economic and social sectors. The fund was launched on October 15, 2020, with an initial allocation of N75 billion approved by the Federal Government.
Individuals and non-registered businesses, as well as registered businesses, are eligible to apply for the fund. Interested youths can apply as individuals or non-registered businesses for up to N250,000, while youth-owned registered businesses can apply for up to N3 million.
Objectives of NYIF
The Nigerian government has launched the Youth Investment Fund to benefit young Nigerians and create over 500,000 jobs by 2023.
The scheme aims to improve access to finance for youth-owned businesses and contribute to national development while curbing youth restiveness by generating employment opportunities.
Additionally, the program seeks to enhance the managerial capacity and develop the potential of young people to prepare them for leadership positions in large corporations. The government has set aside N2.5 billion in seed capital for the program’s initial takeoff.
Documents to Present Before Applying for NYIF
Before applying for the NYIF, one must present the following documents:
- Business Questionnaire
- List of business directors and their BVN numbers
- Prove of registration with the Corporate Affairs Commission (Certificate of incorporation and form CAC 2A)
- Prove regulatory approvals where applicable.
- Tax identification number (TIN)
NYIF application Requirements for Registered Businesses
- To be eligible for the program, businesses must be registered with the Corporate Affairs Commission (CAC) and be owned by youths.
- Applicants must submit either a completed questionnaire or a business plan summary.
- They must also provide the directors’ valid Bank Verification Numbers (BVNs) and a Tax Identification Number (TIN).
- In addition to these requirements, entrepreneurs must have completed an entrepreneurship training certification from FMYSD EDIs. This ensures applicants have the necessary skills and knowledge to manage their businesses successfully.
By meeting these criteria, eligible businesses can take advantage of the benefits offered by the program.
NYIF Requirements for Individuals & Non-Registered Businesses
Applicants must fulfill certain requirements, including:
- Must be a Nigerian citizen within the age bracket of 18-35.
- Must provide a business plan summary or completed questionnaire.
- Must obtain entrepreneurship training certification from FMYSD Entrepreneurship Development Institutes (EDIs).
- Must have a valid BVN and means of ID.
- A valid email address and phone number are also required.
Businesses that are not eligible to apply for NYIF
- The Nigerian Youth Investment Fund (NYIF) has certain eligibility criteria that applicants must meet to participate.
- One of the factors that would render an applicant ineligible is if they are currently enjoying loans from NIRSAL Microfinance Bank (NMFB), such as the Targeted Credit Facility (TCF) and Agribusiness/Small and Medium Enterprises Investment Scheme (AgSMEIS) loans, that remain unpaid.
- Additionally, if an applicant has benefited from other government loan schemes and has yet to repay the loans, they would be ineligible to participate in the NYIF.
Note: It is essential to note that meeting the eligibility criteria is crucial to access the benefits offered by the program. By adhering to the eligibility criteria, applicants can take advantage of the opportunities provided by the NYIF and boost their businesses. However, ineligible applicants must address any outstanding loans before applying for the program.
What Businesses Are Eligible for NYIF?
The following businesses stand to benefit from NYIF:
- Hospitality and tourism
- Technology and innovation
- Agriculture and related value chain
- Green economy and renewable energy sector
- Logistics and supply chain
- Healthcare value chain
- Creative sector
- Trading and services
- The NYIF and CBN may include others from time to time.
Nigerian Youth Investment Fund Terms and Conditions
The terms and conditions of the Nigerian youth investment fund are as follows:
Bank: The NIRSAL Microfinance Bank (NMFB) is the eligible financial institution for the Nigerian Youth Investment Fund scheme.
Collateral: The NMFB will leverage the General Standing Instruction (GSI) as collateral for the loan.
Loan Rate: The Nigerian Youth Investment Fund provides a maximum loan amount of N250,000 for unregistered individual businesses, subject to the project’s nature and activity.
For registered businesses, the maximum loan amount is N3.0 million, including work capital, also depending on the nature and activity of the project.
Tenor: The maximum tenor for the loan is 5 years, depending on the nature of the business and the asset required.
Interest Rate: The interest rate for the loan shall not exceed 5% per annum.
Moratorium: The scheme allows a moratorium of up to 1 year, depending on the nature of the business and the asset acquired.
Repayment: Beneficiaries are required to make repayments to the NMFB according to the agreed repayment schedule and work plan during the application process.
Application Process for the Nigerian Youth Investment Fund
To apply for the Federal Government of Nigeria Youth Investment Fund, follow these steps:
Step 1: Visit the Application Portal
Access the youth investment fund application portal at nyif.nmfb.com.ng based on the information provided at noya.ng.
Step 2: Fill Out the Application Form
Fill out the NYIF application form online. Make sure to provide accurate and relevant information.
Step 3: Participate in the Program
Participation in the program involves attending compulsory entrepreneurship training with an approved Federal Ministry of Youth & Sports Development (FMYSD) EDIs.
Step 4: Submit the Application
After completing the application form and attending the entrepreneurship training, eligible applicants should submit their applications successfully on the NMFB portal.
Step 5: Loan Assessment and Approval
The NMFB conducts a loan assessment per the Risk Assessment Criteria and program guidelines. They make appropriate decisions and forward recommended applications to the Central Bank of Nigeria (CBN) for final approval.
Step 6: Disbursement
After reviewing the applications, the CBN gives final approval for disbursement to the NMFB. The approved funds are then disbursed to the beneficiaries.
Frequently Asked Questions
What is the maximum amount that can be accessed through the Nigerian Youth Investment Fund?
The maximum amount accessed through the Nigerian Youth Investment Fund is N3 million.
How long is the repayment period for the Nigerian Youth Investment Fund?
The repayment period for the Nigerian Youth Investment Fund is five years, with a moratorium period of up to 12 months.
Can non-Nigerians apply for the Nigerian Youth Investment Fund?
No, only Nigerian youths between 18 and 35 years old are eligible to apply for the Nigerian Youth Investment Fund.
How long does it take to process an application for the Nigerian Youth Investment Fund?
The processing time for an application for the Nigerian Youth Investment Fund varies and can take up to six weeks.
Can I apply for the Nigerian Youth Investment Fund more than once?
No, applicants can only apply for the Nigerian Youth Investment Fund once.
Final Wrap Up
The Nigerian Youth Investment Fund is a laudable initiative by the Nigerian government to support the entrepreneurial aspirations of young Nigerians.
The fund allows young Nigerians to access funding and support to start or grow their businesses, which can lead to job creation and economic growth.
Eligible applicants are encouraged to take advantage of the program and apply through the official website or participating financial institutions.
With the right business idea and proper utilization of funds, young entrepreneurs can make significant strides toward achieving their business goals and contributing to the growth of the Nigerian economy.