FG launches YOUTHCRED for entrepreneurs, offers N200,000–N2 Million loans to 500,000 youths

The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative, a new financing programme aimed at providing affordable loans of between ₦200,000 and ₦2 million to 500,000 young entrepreneurs across Nigeria.

The initiative, unveiled on Wednesday in Abuja, is designed to bridge the financing gap facing young business owners by expanding access to credit and supporting the growth of micro, small and medium-sized enterprises (MSMEs).

Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the programme as a strategic intervention to unlock the entrepreneurial potential of Nigerian youths and drive inclusive economic growth.

According to him, the initiative demonstrates the Federal Government’s commitment to building an economy where young people are supported not only with skills and ideas but also with the financial resources needed to transform those ideas into successful businesses.

Explaining the focus on entrepreneurs, Oyedele said more than 90 per cent of Nigeria’s MSMEs are micro-enterprises built around individuals such as tailors, ride-hailing drivers, fashion designers, caterers, content creators, mechanics and young farmers.

He noted that many of them remain excluded from formal financial services because conventional lenders often demand incorporation documents, audited financial statements and collateral that many start-up entrepreneurs cannot provide.

“Through YOUTHCRED for Entrepreneurs, eligible Nigerians aged 18 to 35 can access financing from ₦200,000 to ₦2 million, based not on inherited wealth or collateral, but on responsible credit behaviour, cash flow and repayment capacity through regulated financial institutions,” he said.

The minister urged beneficiaries to treat the facility as a loan rather than a grant, stressing that prompt repayment would ensure the sustainability of the programme and allow more young entrepreneurs to benefit.

Earlier, the Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, disclosed that the corporation had facilitated more than ₦47 billion in consumer credit to over 301,000 Nigerians within the last two years while recording zero per cent non-performing loans.

READ ALSO: Step-by-step guide to applying for the FG’s ₦2 million YouthCred loan for caterers

He explained that YOUTHCRED for Entrepreneurs is the third phase of the programme, following earlier interventions targeted at National Youth Service Corps (NYSC) members and employed youths.

According to him, CREDICORP plans to expand the initiative to 500,000 beneficiaries and eventually reach one million Nigerians before the end of the year.

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

Also speaking, the Ministers of Budget and Economic Planning, Senator Abubakar Bagudu; Youth Development, Ayodele Olawande Wisdom; and Women Affairs, Imaan Sulaiman-Ibrahim, commended President Bola Tinubu’s administration for expanding financial inclusion and creating more economic opportunities for young Nigerians.

The YOUTHCRED for Entrepreneurs initiative is the latest phase of the Federal Government’s consumer credit expansion programme implemented through CREDICORP.

The programme is expected to improve access to affordable financing for young entrepreneurs who often struggle to secure conventional bank loans due to collateral and other lending requirements.

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