By Taiwo Scholarstica
The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative, with plans to provide loans ranging from N200,000 to N2 million to 500,000 young entrepreneurs across the country.
The initiative, unveiled in Abuja on Wednesday, is aimed at addressing the difficulty many young business owners face in accessing affordable financing to start, sustain and expand their businesses.
Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the programme as a strategic effort to unlock the entrepreneurial potential of young Nigerians and promote economic growth through improved access to credit.
He said the initiative was part of the Federal Government’s efforts to build an inclusive economy where young people would have access to not only skills and business ideas but also the financial resources required to turn those ideas into sustainable enterprises.
Explaining the decision to focus the scheme on entrepreneurs, Oyedele said, “You may want to ask why the focus on entrepreneurs? That’s because more than 90 per cent of Nigeria’s MSMEs are micro enterprises built around individuals, from the tailor to the ride-hailing driver, the fashion designer, the caterer, content creator, the mechanic, and the young farmer.
“Many remain excluded from formal finance because traditional lending demands incorporation more often than not, audited accounts and collateral that early-stage entrepreneurs simply do not have and cannot provide.”
He added, “Through YOUTHCRED for Entrepreneurs, eligible Nigerians aged 18 to 35 can access financing from N200,000 to N2 million, based not on inherited wealth or collateral, but simply on responsible credit behaviour, cash flow and repayment capacity delivered through regulated financial institutions.”
The minister urged beneficiaries to understand that the funds were loans and not grants, stressing that they were expected to repay the facilities.
He said timely repayment would enable the scheme to continue and create opportunities for other young entrepreneurs to benefit. He also noted that responsible use of the funds could help businesses expand while promoting financial discipline among beneficiaries.
Earlier, the Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, disclosed that the corporation had facilitated more than N47 billion in consumer credit for 301,000 Nigerians over the past two years, while recording zero per cent non-performing loans.
Nwagba said YOUTHCRED for Entrepreneurs represents the third phase of the programme’s rollout for young Nigerians, following earlier initiatives targeted at National Youth Service Corps members and employed youths.
He said the corporation was targeting 500,000 beneficiaries and hoped to increase the number to one million Nigerians before the end of the year.
Nwagba said, “Hardworking young Nigerians deserve structured credit, not charity. More than 90 per cent of our MSMEs trade in the name of the person who built them, so that is exactly how we built this credit line—for the individual, not just the entity. Every naira is tied to eligibility, repayment discipline and business growth because when builders win, Nigeria wins.”
The Ministers of Budget and Economic Planning, Senator Abubakar Bagudu; Youth Development, Ayodele Olawande Wisdom; and Women Affairs, Imaan Sulaiman-Ibrahim, also praised the initiative, describing it as an important step towards expanding financial inclusion and creating more economic opportunities for young Nigerians.
The YOUTHCRED for Entrepreneurs programme is the latest phase of the Federal Government’s consumer credit expansion initiative being implemented through CREDICORP.
The scheme is designed to support young entrepreneurs who often struggle to secure conventional bank loans due to collateral demands and other lending conditions.
The Federal Government said improving access to affordable financing for micro, small and medium-sized enterprises remains a key part of its strategy to encourage entrepreneurship, create jobs and drive inclusive economic growth under the Renewed Hope Agenda.