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FG Targets 500,000 Young Entrepreneurs with Loans of up to N2m
FG Targets 500,000 Young Entrepreneurs with Loans of up to N2m
The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative, targeting 500,000 young business owners with loans ranging from N200,000 to N2 million.
The programme, unveiled in Abuja on Wednesday, is aimed at improving access to affordable financing for young entrepreneurs and helping them start, sustain and expand their businesses.
Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the initiative as a strategic intervention designed to unlock the potential of young Nigerians and promote inclusive economic growth.
Oyedele explained that the programme focuses on entrepreneurs because more than 90 per cent of Nigeria’s micro, small and medium-sized enterprises are micro businesses operated by individuals, including tailors, ride-hailing drivers, fashion designers, caterers, content creators, mechanics and farmers.
He noted that many young entrepreneurs struggle to access formal financing due to conventional lending requirements such as business incorporation, audited financial statements and collateral.
Under the YOUTHCRED initiative, eligible Nigerians between the ages of 18 and 35 can access loans of between N200,000 and N2 million. According to the minister, eligibility will be determined by factors including credit behaviour, cash flow and repayment capacity, rather than inherited wealth or collateral.
Oyedele urged beneficiaries to understand that the facility is a loan and not a grant, stressing that timely repayment would help sustain the programme and enable more young entrepreneurs to benefit.
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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 to 301,000 Nigerians over the past two years, while recording a zero per cent non-performing loan rate.
Nwagba said the YOUTHCRED for Entrepreneurs initiative is the third phase of the programme, following earlier interventions for National Youth Service Corps members and employed youths.
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He added that CREDICORP plans to expand the programme to reach 500,000 beneficiaries and eventually one million Nigerians before the end of the year.
The Ministers of Budget and Economic Planning, Youth Development, and Women Affairs also commended the initiative, describing it as an important step towards strengthening financial inclusion, empowering young Nigerians and promoting economic growth.
The YOUTHCRED for Entrepreneurs programme is part of the Federal Government’s broader consumer credit expansion efforts being implemented through CREDICORP. The initiative is designed to provide affordable financing to young entrepreneurs who often face difficulties accessing conventional bank loans due to collateral and other lending requirements.
The government says expanding access to finance for micro, small and medium-sized enterprises remains crucial to promoting entrepreneurship, creating jobs and driving economic growth under the Renewed Hope Agenda.
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