The Central Bank of Nigeria has given conditions of the eligibility for the N75 billion Youth Investment Fund recently launched by the bank.
The fund which was approved by the Federal Executive Council, and which is to take effect from 2020–2023; is aimed to assist Nigerian youths with funds needed for their businesses.
According to the CBN, the scheme’s aim is to financially empower Nigeria youth to create over 500,000 jobs between now and 2023.
NIRSAL Microfinance Bank (NMFB), is the financial institution saddled with the responsibility of managingel the scheme, and the scheme will be kickstart with a capital of N12.5 billion.
The Apex bank thus, stated the conditions for applicants to be eligible for the scheme. According to the CBN informal and formal business enterprises will benefit from the scheme however for individuals or sole proprietors of informal enterprise to be eligible, they meet some requirements which includes, they must be a youth within the age of 18-35 years, must have a business that is operative in Nigeria and must not have been convicted of financial crimes in the last 10 years.
Applicants are required to have a valid Bank Verification Number (BVN), they must as well have certificate of indigene from their local government of origin.
Youths with self-owned ormal business enterprises, that are legally registered with the Corporate Affairs Commission (CAC) are required to possess the following documents;
Evidence of registration with the Corporate Affairs Commission, business questionnaire, a list containing names of Directors with their BVN number, an evidence of regulatory approvals (optional) and Tax Identification Number (TIN).
Cooperative societies legally registered with the relevant government authorities and members of Commodity Associations that fall within the eligible age bracket are also eligible to participate.
However, applicants currently enjoying NMFB loans, including the Targeted Credit Facility (TCF) and Agribusiness/Small and Medium Enterprises Investment Scheme (AgSMEIS) loans that are yet to be paid are not eligible to apply.
The CBN noted that individuals with unregistered businesses are eligible for up to N250,000 loan while registered businesses are eligible for up to N3 million with a maximum of 5% interest rate per annum.