Federal Ministry for Youth and sport Loan 2023
As a business owner in Nigeria, especially if you’re young, it might be tough to run your business smoothly. But not to worry.
The Nigerian government has created an empowerment program scheme through the Nigerian Federal Ministry of Youth and Sport Developments to specifically empower youths who wish to grow their businesses with the Nigerian Youth Investment Fund.
This loan is targeted at MSMEs (Micro, Small, and Medium Enterprises) owned by youths. So, if you’re a youth in business or you know someone who’s young and is in business, feel free to jump on this opportunity to expand your business via this loan.
Keep reading to discover more information about this loan.
Eligibility Criteria for the Nigerian Youth investment fund (NYIF) Loan
The Nigerian Youth Investment Fund gives youths in MSMEs 75 million naira to build their businesses.
The Central Bank of Nigeria is set to fund this scheme, which runs for 3 years. The aim is to fund youth-owned businesses to help them get established.
However, some criteria determine if you’re eligible to apply for the loan. The Criteria differs in term of the loan category you want to apply for.
But generally, this loan is available to youths within the age bracket of 18-35 years old.
The best part of this scheme is that you do not necessarily need to have a registered business to be eligible for the loan.
Also, it is not restricted to specific businesses; any youth with any business can apply to get a loan. It doesn’t matter if you’re a tailor, artisan, trader, run an ecommerce store, etc.
You’re also eligible to get the loan under the NYIF scheme. If you’re applying for the loan as an individual without a business, you’re only eligible for N250,000. On the flip side, if you’re applying as a youth with a business that’s registered, you’re eligible to get the maximum amount of N3 million.
Note that interest on this loan is 5% per annum and must be repaid over 5 years with a 12-month moratorium.
Selection Criteria for Federal ministry for Youth and sport loan
For starters, there are two categories for this loan. Hence, there are two criteria for selection based on the two categories.
The first category addresses youths with an unregistered business that might be micro, small, or medium.
As long as the business is operational, they can get a certain amount of money under this scheme. Based on the categories in this loan scheme, there are different criteria. Keep reading to find out.
Informal MSMEs (Individual & Sole Proprietors )
Those who fall under this category are unregistered businesses that are in operation.
All you’ll need to register and qualify for a loan under this category in the NYIF scheme includes;
- Have no record of financial crime conviction in the last 10 years.
- A Nigerian youth within the age of 18 to 35
- Evidence of Local Government Indigene Certificate.
- Have a registered or unregistered business in operation and based in Nigeria.
- Valid Bank Verification Number (BVN)
Once you have all these documents in place as a sole proprietor or micro business owner, you can apply for a loan under this scheme.
Formal MSMEs — Youth Owned Enterprises
If you operate a registered business with an official structure, you can apply for a loan under this scheme regardless of its size. You’ll get up to N3 million naira when you apply for a loan. Here are the required documents.
- Corporate Affairs Commission (CAC) registered formal Youth owned enterprises.
- Business plan Summary / Or Completed Questionnaire
- Evidence of Training Certificate from approved FMYSD EDIs
- Valid Bank Verification Number (BVNs) of Directors
- Tax Identification Number (TIN)
Now that you know the criteria you need to fulfill to be eligible for a loan under the NYIF scheme, you might be wondering the field for the qualifying businesses.
So you don’t panic yourself out of applying for this loan, we’ve highlighted the fields your business must be active in to be further eligible for this loan. They include;
- Creative sector
- Technology/ Innovation
- Agriculture and related value chain
- Logistics and supply chain
- Hospitality/ Tourism
- Healthcare value chain
- Green Economy and Renewable energy sector
If your business offers services that fall into these highlighted fields, you have nothing to worry about regarding the possibility of qualifying for a loan under this scheme.
Note that your business doesn’t necessarily have to be registered, but you can work on the process to register your business with CAC for future opportunities.
Just as there are eligibility criteria that qualify you to apply for a loan under this scheme, there’s the flip side of the eligibility criteria.
Meete the eligibility criteria but still happen to fall under certain criteria that we would address as the ineligibility criteria.
You can’t apply for a loan under this scheme. So, what are the ineligibility criteria? Let’s find out.
- Unpaid beneficiaries of NMFB loans.
- Unpaid beneficiaries of NMFB loans.
Once you’re sure that the ineligibility criteria don’t rule you out of benefiting from this loan, proceed to commence the enrollment procedure.
While trying to apply, you’ll be required to input details like your Business name, website (optional, except you have one), and email address.
You should also know that the application is an online procedure.
Also, you’ll need to train in the entrepreneurship program before you can apply for the loan. If you qualify for the loan, the funds would be disbursed by the Central Bank of Nigeria.
Application Procedures/How to apply?
Want to apply? After all who wouldn’t want to benefit from all these juicy offer? But remember that the application is online based.
No hand or manual application, just log online and get your information filled on the form provided on the application portal @ nyif.nmfb.com.ng. Based on information provided at youwin.org.ng . Participation in program will involve the following steps;
Step 1: Get Trained
There is need to train Applicants on entrepreneurship hence they need to get this training with an approved Federal Ministry of Youth & Sports Development (FMYSD) EDIs
Step 2: Apply For Loan
Successfully trained prospective applicants proceed to NIRSAL Microfinance Bank (NMFB) portal to apply for the loan.
Step 3: Submit an Application
Eligible applicants submit applications successfully on NMFB’s portal.
Step 4: Approval
NMFB won’t just approve the loan they are going to look into every details as regards to Risk Assessment Criteria and programme guideline, before they will make a final decision and forward their findings and recommendation to CBN which is the Apex Bank of Nigeria for final approval.
Step 5: Disbursement
When the recommendation gets to CBN, its left for them to carry out a reviews of the applications and thereby gives final approval for disbursement to NMFB to beneficiaries.
Please note: you are not meant to pay in money to anyone, application is free as forms are readily available at the Nigeria Youth Investment Fund portal nyif.nmfb.com.ng and noya.ng (informational).
What Are the Benefits of Enrolling for the program?
- NYIF- Opportunity to get 250k to 50m loan (per MSME) at 5 per cent for business ideas.
2. DY.ng- Digital training and a pathway to enterprise via FMYSD and CBN led training opportunities.
3. Access to participate in empowerment programs and entrepreneurship training programs organized by the Ministry.
4. Access to real time information on all youth entrepreneurship initiatives.
5. Priority funding from other public and private sector, financial institutions, including international donor Agencies.
6. Provides borderless marketing opportunities for MSMEs
7. Business guarantor and many more opportunities.
There are quite a few benefits attached to applying for this loan. At the core of this loan, the scheme is that applicants would be able to expand their business with loans ranging from N250 000 to N3 million naira.
Aside from the money that’ll help business owners grow their businesses, they go through entrepreneurial training.
This training would equip these youths in business to make wise business decisions and easily utilize the loan for their business expansion, providing employment opportunities and alleviating poverty in the process.