The Nigeria Youth Investment Fund (NYIF) has reopened for applications, according to the federal government of Nigeria’s Ministry of Youth Development. This project, which was announced on the Ministry’s official X handle, is meant to help young entrepreneurs. The Federal Executive Council (FEC) authorized ₦110 billion in May to Finance youth-focused start-ups and early-stage companies, according to Minister of Youth Development Dr. Jamila Bio Ibrahim. The program aims to support young Nigerians’ well-being, academic achievement, unity throughout the country, and sustainable development.
In order to improve skill development, the Ministry is also dedicated to overhauling the National Youth Service Corps (NYSC). The Federal Ministry of Youth and Sports Development introduced the NYIF to solve the difficulties young entrepreneurs have obtaining finance. The fund supports economic expansion, job development, and youth Empowerment by providing a range of financial instruments, including grants, loans, and equity. With an initial seed capital of ₦12.5 billion, the NYIF, which was founded in 2020 with ₦75 billion, hopes to create 500,000 jobs by 2023.
It has proven to be an effective tool for many young business owners.
With the help of the Ministry, the Nigerian Youth Employment Action Plan was created in an effort to bring disparate youth initiatives together and supply the funding required to establish long-term enterprises and advance Nigeria. The NYIF has proven to be an effective tool for many young business owners looking to expand. One example is the ₦2 million Loan that the NYIF gave to Fashion designer Aisha Bello, a 26-year-old. She improved her production capacity and Revenue by growing her business by recruiting more employees and investing in new equipment.
Likewise, 29-year-old agribusinessman John Okoro was able to expand his chicken farm thanks to a ₦3 million award. Since then, John has increased his output by twofold and given five other young people in his community jobs. A variety of financial products designed to meet various business requirements are available from the NYIF. A 12-month moratorium period is included in the Interest Rate of loans made under the NYIF, which is set at 5% annually for a maximum duration of five years.
Young business owners who have profited from the NYIF are grateful.
Innovative projects with a strong potential for job creation and economic impact are eligible for grants, which range in amount from ₦500,000 to ₦5 million. For companies with significant development potential, equity investments are another option; they provide funds in return for a share of the business. These equity agreements are set up such that the government keeps a minority stake, allowing the company to maintain its independence. The NYIF was founded and to date has given over ₦50 billion to over 25,000 young Nigerian entrepreneurs.
About 300,000 jobs have been created as a result of this support, greatly lowering the rate of youth unemployment. Because of the fund’s backing, industries like industry, technology, agriculture, and the creative arts have all experienced significant growth. Young business owners who have profited from the NYIF are grateful and hopeful. According to Aisha Bello, “the NYIF loan transformed my business.” “My income has doubled because I can meet higher demand and provide quality products with the new equipment.” Similar thoughts are expressed by John Okoro, who says, “The grant I received was a game-changer.” It made it possible for me to grow my business and add additional employees, boosting the local economy.
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A thorough reform program within the National Youth Service Corps (NYSC) is being carried out by the Ministry of Youth Development in accordance with the NYIF. To better equip youth corps members for entrepreneurship and employability, these reforms put a strong emphasis on skill development. Along with mandated entrepreneurship training, new efforts include access to NYIF money for workable business concepts presented throughout the service year and cooperation with Private Sector organizations for internships. With these initiatives, young Nigerians hope to be better prepared for the workforce and the world of entrepreneurship.