FG targets 500,000 young entrepreneurs with up to N2m loan

The Federal Government on Wednesday launched the YOUTHCRED for Entrepreneurs initiative, targeting 500,000 young entrepreneurs with loans of between N200,000 and N2 million to expand access to finance and support business growth across the country.

The scheme, unveiled in Abuja, is designed to bridge the financing gap facing young business owners by providing affordable credit to help them start, sustain and scale their enterprises.

Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the initiative as a strategic intervention to unlock the entrepreneurial potential of young Nigerians and accelerate economic growth through inclusive access to credit.

He said the programme reflects the Federal Government’s commitment to building a more inclusive economy where young people are equipped not only with skills and ideas but also with the financial support needed to transform those ideas into thriving businesses.

Explaining why the programme is focused on entrepreneurs, Oyedele said, “You may want to ask why the focus on entrepreneurs? That’s because more than 90 per cent of Nigeria’s MSMEs are micro enterprises built around individuals, from the tailor to the ride-hailing driver, the fashion designer, the caterer, content creator, the mechanic, and the young farmer.

“Many remain excluded from formal finance because traditional lending demands incorporation more often than not, audited accounts and collateral that early-stage entrepreneurs simply do not have and cannot provide.”

He added, “Through YOUTHCRED for Entrepreneurs, eligible Nigerians aged 18 to 35 can access financing from N200,000 to N2 million, based not on inherited wealth or collateral, but simply on responsible credit behaviour, cash flow and repayment capacity delivered through regulated financial institutions.”

The minister urged beneficiaries to regard the facility as a loan that must be repaid rather than an entitlement.

According to him, prompt repayment will ensure the sustainability of the programme and allow more young entrepreneurs to benefit, while responsible use of the credit facility would help businesses grow and strengthen the culture of financial discipline needed to expand access to consumer credit.

Earlier, the Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, said the corporation had facilitated over N47 billion in consumer credit to 301,000 Nigerians in the last two years while maintaining zero per cent non-performing loans.

He explained that YOUTHCRED for Entrepreneurs is the third phase of the programme’s rollout targeted at young Nigerians, following earlier phases for National Youth Service Corps members and employed youths.

Nwagba said the corporation aims to expand the programme to 500,000 beneficiaries and eventually one million Nigerians before the end of the year.

He said, “Hardworking young Nigerians deserve structured credit, not charity. More than 90 per cent of our MSMEs trade in the name of the person who built them, so that is exactly how we built this credit line—for the individual, not just the entity. Every naira is tied to eligibility, repayment discipline and business growth because when builders win, Nigeria wins.”

The Ministers of Budget and Economic Planning, Senator Abubakar Bagudu; Youth Development, Ayodele Olawande Wisdom; and Women Affairs, Imaan Sulaiman-Ibrahim, also commended President Bola Tinubu’s efforts to deepen financial inclusion and expand economic opportunities, describing the initiative as a critical step towards empowering young Nigerians and boosting inclusive economic growth.

The YOUTHCRED for Entrepreneurs initiative is the latest phase of the Federal Government’s consumer credit expansion programme being implemented through CREDICORP. It follows earlier interventions targeted at National Youth Service Corps members and employed youths.

The programme seeks to improve access to affordable credit for young entrepreneurs who are often unable to obtain conventional bank loans because of collateral and other lending requirements.

The government says expanding access to finance for micro, small and medium-sized enterprises is central to its efforts to promote entrepreneurship, create jobs and drive economic growth under the Renewed Hope Agenda.