The Nigerian Youth Employment Action Plan was developed by the Federal Ministry of Youth and Sports Development (FMYSD) as a built-in strategy to respond effectively to the youth employment challenge in Nigeria. The major objectives of the plan are to address the fragmentation of youth initiatives that prevent the assessment of impact and to provide Nigeria youth with investment inputs required to build successful businesses that can become sustainable employers of labour and contributors to Nigeria’s development.
The plan targets young people between the ages of 18-35 years and details the needed actions required to support business establishment, expansion and consequent employment creation for youth in critical economic and social sectors.
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The Federal Executive Council on the 22nd of July, 2020 approved the sum of N75,000,000,000.00 (seventy-five billion naira) for the establishment of the Nigeria Youth Investment Fund for the period of 2020 – 2023 dedicated to investing in the innovative ideas, skills and talents of Nigerian Youth, and to institutionally provide our youth with a special window for accessing much-needed funds, finances, business management skills and other inputs critical for sustainable enterprise development.
FMYSD is the lead implementation entity and is responsible for budgetary provisions and for funds mobilization.
Target and Objectives of the Scheme
The NYIF aims to financially empower Nigeria youth to generate at least 500,000 jobs between 2020 and 2023.
The objectives include:
– Improve access to finance for youth and youth-owned enterprises for national development;
– Generate much-needed employment opportunities to curb youth restiveness.
– Boost the managerial capacity of the youth and develop their potentials to become the future large corporate organizations.
Seed Capital: The NIRSAL MFB window shall be funded with an initial take-off seed capital of N12.5 billion.
Participating Financial Institution: The eligible participating financial institution for the Scheme is NIRSAL Microfinance Bank (NMFB).
Informal Business Enterprises (Individuals and Sole Proprietors)
A huge percentage of youth are engaged in the informal sector. Accordingly, the NYIF will facilitate the transition of informal enterprises owned by youth into the formal mainstream economy where they can be supported comprehensively, build a bankable track record; and be accurately captured as active participants in economic development. Eligible youth must fulfil the following conditions:
(i) Be a youth within the age bracket of 18-35 years.
(ii) Have business/enterprises domiciled and operational in Nigeria.
(iii) Has not been convicted of any financial crime in the last 10 years.
(v) Has a valid Bank Verification Number (BVN)
(vi) Possess Local Government Indigene Certificate.
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Formal Business Enterprises (Youth Owned Enterprises)
These are enterprises that are legal entities duly registered with the Corporate Affairs Commission (CAC).
(i) Evidence of registration with Corporate Affairs Commission (Certificate of Incorporation and Form CAC 2A);
(ii) Business questionnaire;
(iii) List of Directors with BVN nos.;
(iv) Evidence of regulatory approvals (where applicable);
Cooperative societies duly registered with the relevant government authorities and members of Commodity Associations that fall within the eligible age bracket are also eligible to participate.
Applicants currently enjoying NMFB loans, including the Targeted Credit Facility (TCF) and Agribusiness/Small and Medium Enterprises Investment Scheme (AgSMEIS) loans that remain unpaid are NOT eligible to apply.
Beneficiaries of other government loan schemes that remain unpaid are also not eligible to participate.
Applicants shall undergo compulsory entrepreneurship training arranged or approved by the Federal Ministry of Youth and Sports Development.
Legally allowed activities in the sectors or focal areas listed below shall be eligible:
(i) Technology/ Innovation;
(ii) Agriculture and related value chain;
(iii) Green Economy and Renewable energy sector;
(vii) Logistics and supply chain;
(viii) Healthcare value chain,
(ix) Creative sector and
(x) Trading and Services.
(xi) Others as may be determined by NYIF/CBN from time to time.
However, preference shall be given to enterprises that will support the growth of priority sectors, specifically those identified by the Economic and Recovery Growth Plan ERGP and the Nigerian Youth Employment Action Plan.
Featured image source: Nigeria Youth SDG Network
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