The NYIF is a funding and financing platform established and catalysed by the Federal Government of Nigeria through the Ministry of Youth Development, with an initial seed funding of N110 billion. The Fund provides financial support through loans, grants, and equity investments, as well as non-financial support such as mentorship, training, and business development services. Its goal is to support Nigerian youths with innovative businesses and ideas, create jobs, and promote economic growth.
Nigerian youths aged 18 to 40 with innovative ideas for starting new businesses or growing existing enterprises are eligible to apply for the NYIF.
The NYIF's main objective is to financially empower Nigerian youths to generate at least 2,000,000 direct and indirect jobs over the next three years by providing access to capital, mentorship, and training support. Other objectives include harnessing the talents of the youth for national growth and development, poverty alleviation, and improving Nigerians' living standards.
I. Be a Nigerian citizen aged between 18 and 40 years.
II. Have a business or business idea that aligns with the Fund’s objectives.
III. Possess a National Identification Number (NIN) and Bank Verification Number (BVN).
IV. Businesses must be registered and have supporting CAC documents.
V. Show a willingness to help Nigeria's economic growth.
VI. Provide a viable business plan.
VII. Provide cash flow that provides evidence supporting the business' ability to repay the loan.
VIII. Provide evidence to manage the business successfully.
The NYIF focuses on priority sectors and clusters with high job creation and economic growth potential. These sectors include but are not limited to:
§ Agriculture, with clusters in cotton production (Katsina and Bauchi), rice production (Ebonyi and Enugu), crop production (Kaduna, Kano, Osun, Kwara, Oyo, Imo, Ogun), and sugar cane production (Kebbi and Cross River).
§ Agro-produce and agro-processing clusters in Niger.
§ Light manufacturing industries in Abia and Lagos.
§ Electric vehicle clusters in various states, including FCT, Lagos, Ondo, and more.
§ Solar farm clusters in the FCT.
§ Creative and Entertainment industries include film, fashion, and beauty in Lagos, Delta, and Kano.
§ Virtual IT, Digital and Software Development clusters nationwide.
§ Woodwork and furniture clusters in Edo.
§ Mining clusters in Ekiti (lithium) and Kwara (gold).
§ Fisheries clusters along the nation’s fishery belt.
§ Trade clusters in major commercial hubs.
§ ICT clusters in Lagos and Abuja.
§ Livestock clusters in Kano, Kwara, Cross River, FCT, and Oyo.
§ Other value-enhancing and productive clusters
Sectors have been chosen for their potential to create job opportunities and significantly drive economic development.
A total of N110 billion Naira is being released for the NYIF in 2024
Funding will vary case-by-case, with amounts tailored to each business's specific needs and potential impact. The maximum loan per applicant is fifty million Naira, while it can be up to N100 million for equity in well-established businesses.
The NYIF offers multiple financial support options, including grants and equity investments, for entrepreneurs who prefer not to take a loan. The criteria and selection process for these options will be based on the viability and potential impact of the business idea.
No, the loan is not interest-free. Applicants will enjoy a single-digit rate of interest from the Fund.
The maximum amount a single obligor or loan applicant can access is fifty million naira.
Yes, businesses in the ideation phase are eligible to apply. The NYIF will provide tailored support for approved early-stage businesses, including funding, mentorship, and business development training to help turn innovative ideas into viable businesses.
The loan tenure is a maximum of five years at a single-digit interest rate with a maximum ofone-year moratorium. The moratorium rate will be determined on a case-by-case basis.
Loan Facility Repayment:
I. Principal repayments under the N-YIF are structured and tailored to the nature of the beneficiary’s business and the agreed repayment schedule during the loan approval process.
II. Principal repayments will be made in equal instalments.
III. Interest must be paid monthly, no later than five working days after the bill is due.
IV. Repayment schedules (monthly or quarterly) will be based on the business's projected cash flows.
V. Before loan disbursement, each beneficiary will receive an amortization schedule detailing principal and interest repayments based on the agreed tenor and payment periods.
The NYIF program strives to ensure the utmost inclusivity. It will provide support services to assist non-registered businesses in getting registered to put the entrepreneur on the right path and give them a better chance at success.
No State is excluded from the NYIF program. Youths from across the nation can benefit from NYIF. However, the initial clusters framework focuses on priority sectors in States that have signed agreements with NYIF. The Federal Ministry of Youth Development is committed to ensuring that clusters exist in every State.
Yes, representatives will contact applicants to carry them along with the process.
Past Beneficiaries with Performing Loans or fully liquidated Loans will have priority over those with Non-Performing Loans (“NPLs”). However, we shall also engage new applicants with NPLs to understand their issues and proffer solutions on way forward.
The NYIF will support youth entrepreneurs through:
I. Financial support: Through loans, grants, and equity investments tailored to the needs of youth-led businesses.
II. Mentorship: By connecting entrepreneurs with experienced business mentors who will provide guidance and advice.
III. Skills development: By facilitating training programs in business management, financial management, and industry-specific skills.
IV. Business development services: Supporting business planning, market research, and operational efficiency.
V. Market access: By facilitating access to local and international markets through partnerships and networking opportunities.
By providing capital and support to youth-led businesses, the NYIF aims to generate/support at least 50,000 businesses and create over 2,000,000 direct and indirect jobs over the next 2-3 years, immediately reducing unemployment and underemployment among Nigerian youths.
Long-term benefits include sustained economic growth, export of Nigeria-made products, social inclusion, reduced youth unemployment, and enhanced productivity by supporting innovative youth enterprises.
The short-term activities of the 2024 NYIF program include:
I. Commencing the application review process to select eligible applicants in August 2024.
II. Conducting training programs for selected youth entrepreneurs from August to September 2024.
III. Initiating the disbursement of funds to qualified businesses as soon as possible and after meeting the conditions precedent to drawdown in the loan agreements executed between NYIF and beneficiaries. .
IV. Providing mentorship and business development services to help entrepreneurs refine their business plans and strategies.
V. Facilitating market access programs to connect entrepreneurs with potential customers and investors.
The restructured NYIF is a strategic intervention to address youth unemployment and underemployment sustainably. It is a legacy project for the administration led by President Bola Ahmed Tinubu.
Eligible youths can apply through the NYIF application page on the Federal Ministry of Youth Development’s website. Apply now https://www.fmyd.gov.ng/nyif_application
