Anyone can literally see the high interest the Nigerian government have been putting in place to encourage both young and old Nigerian entrepreneurs.
In the year 2020, we’ve seen quite alot of encouraging programmes, targeted at funding businesses across the nation.
This year recorded quite alot of free business funding programmes by the government for small business owners. Alot of Nigerians benefitted from programmes like the survival funds, paads loan for farmers, and the rest of it. NYIF came with a whole new vibe as well.
The Nigeria Youth Investment Fund (NYIF) is one government funding programme that gathered lots of attention; and here are twelve (12) things you should know about NYIF.
12 Things You Should Know About NYIF
NYIF Approval Date:
The programme was approved by FEC on the 22nd of July 2020.The scheme was later announced on twitter via the president’s twitter handle on the 1st of November 2020.
How Much Fund Is Involved:
About 75 billion Naira. This Fund will invest in the innovative ideas, skills and talents of young.
What Is The Aim?
The NYIF aims to financially empower Nigeria youth to generate at least 500,000 jobs between 2020 and 2023. The NIRSAL MFB window shall be funded with an initial take-off seed capital of N12. 5 billion.
What is The Age Bracket?
Young Nigerians within the age bracket of 18 to 35 years of age.
What Are The Requirements For Application (Registered Business)?
- Formal business enterprises (Youth owned enterprises), duly registered with the Corporate Affairs Commission (CAC)
- Valid Bank Verification Number (BVNs) of Directors
- Provision of Tax Identification Number (TIN)
- Entrepreneurship Training Certification from FMYSD EDIs
What Is The Amount Of Funds Available For A Registered Business?
Registered Businesses (Business Name / Limited Liability / Cooperative Societies/ Commodities Associations): Can access up to ₦3,000,000.00
What Is The Amount Of Funds Available For A Non- Registered Business?
Individual / Non-registered Businesses: Can access up to ₦250,000.00
What Are The Requirements For Application (Non- Registered Business/Individuals)?
- Individual within the age bracket of 18 to 35 years
- Has a valid BVN and means of ID
- Provision of Business plan Summary or Completed Questionnaire
- Entrepreneurship Training Certification from FMYSD
- Entrepreneurship Development Institutes (EDIs)
The fund aims to reach 500,000 youth annually between 2020 and 2023.
Each fund approval will range from N250, 000 to N50, 000,000, with a spread across group applications, individual applications, working capital loans set at 1 year and term loans set at 3 years with single digit interest rate of 5%.
Is The Application Free?
Yes it is free, do not allow anyone trick you.
When Did The NYIF Portal Go Live?
Nigeria Youth Investment Fund (NYIF) Portal went live on Oct 12, 2020.
What is the interest rate?
Interest rate under the intervention is 5% per annum (all inclusive).
How long is the loan for?
Term loans have a maximum tenor of not more than 5 years.
How much can I access?
Households: Can access a maximum of N3 million
Loan amount to SMEs shall be determined based on the activity, cashflow and industry/segment size of beneficiary, subject to a maximum of N25 million.
Working capital shall be a maximum of 25% of the average of the previous 3 years’ annual turnover. (where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice).
Is there a Moratorium period?
At least, one-year moratorium.
Can someone currently enjoying any CBN intervention fund access this loan?
No, you cannot access this facility except previous CBN intervention loan(s) has been fully repaid.
Do I need a collateral to access this Loan?
No, but all assets purchased under the scheme must be registered with the National Collateral Registry (NCR. Also, the Global Standing Instruction (GSI) mandate will be activated to ensure full repayment by loan obligor.
Can any NIRSAL MFB approved EDIs train applicants for this programme?
No, the NIRSAL approved Entrepreneurship Development Institute EDIs are not eligible to train any applicants under this scheme, except they are listed by the FMYSD.
Do I need a Bank Verification Number BVN to apply?
Yes, a valid Bank Verification Number (BVN) is required.
What valid means of identification do I need?
Any valid means of Identification such as Driver’s license, National ID & International passport.
Does my Business or Enterprise need to be domiciled in Nigeria?
Yes, the Business/Enterprises must be domiciled and operational in Nigeria.
How Do I Register For NYIF?
NYIF Application Process – Step By Step Guide
- Visit NYIF Application Portal for the Application Form.
- Enter Your Personal Information.
- Chose Preferred Training Center.
- Select How You Heard About NYIF.
- Accept NYIF Terms of Service.
- Submit Your Application.
What Is The Official Portal?
The Official Portal Is https://nyif.nmfb.com.ng/
Where can I get trained?
Visit the nearest approved Federal Ministry of Youth & Sport Development (FMYSD) Entrepreneurship Development Institute (EDIs) or www.youthandsport.gov.ng