The Federal Government has launched a new financing initiative aimed at providing affordable loans to 500,000 young entrepreneurs across Nigeria, with eligible beneficiaries able to access between N200,000 and N2 million to establish or expand their businesses.
The programme, known as YOUTHCRED for Entrepreneurs, was unveiled in Abuja on Wednesday as part of the Federal Government’s broader efforts to improve access to credit for young business owners who are often excluded from conventional lending opportunities.
Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the initiative was designed to unlock the entrepreneurial potential of young Nigerians by making financing more accessible.
According to him, the scheme reflects the government’s commitment to creating an economy where innovation and enterprise are supported with the financial resources needed to succeed.
Explaining the rationale behind the programme, Oyedele noted that Nigeria’s business landscape is dominated by micro enterprises that frequently struggle to obtain loans because they lack formal business structures or collateral.
“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 explained that the new credit facility departs from conventional lending requirements by assessing applicants based on their financial behaviour and repayment ability rather than ownership of assets.
“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.”
Oyedele urged prospective beneficiaries to regard the facility as a loan that must be repaid, stressing that prompt repayment would ensure the programme remains sustainable and enable more young Nigerians to benefit in the future.
Earlier, the Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP), Uzoma Nwagba, said the agency had already facilitated more than N47 billion in consumer credit for over 301,000 Nigerians in the last two years without recording any non-performing loans.
He explained that the entrepreneur-focused initiative represents the third phase of the Federal Government’s youth credit programme, following earlier interventions targeted at National Youth Service Corps members and employed young Nigerians.
Nwagba disclosed that the corporation intends to expand the scheme to reach 500,000 entrepreneurs in the immediate term and one million beneficiaries 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 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.”
Also speaking at the event, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, the Minister of Youth Development, Ayodele Olawande Wisdom, and the Minister of Women Affairs, Imaan Sulaiman-Ibrahim, praised President Bola Tinubu’s efforts to expand financial inclusion and improve economic opportunities for young Nigerians.
They described the YOUTHCRED for Entrepreneurs initiative as a major intervention that would strengthen small businesses, encourage entrepreneurship, create jobs and contribute to inclusive economic growth.
The programme is the latest component of the Federal Government’s consumer credit expansion strategy being implemented through CREDICORP. It is specifically designed to address the financing challenges faced by micro, small and medium-sized enterprises by providing affordable loans without the stringent collateral requirements associated with traditional commercial lending.
Government officials said the initiative aligns with the Renewed Hope Agenda’s objective of boosting entrepreneurship, stimulating private-sector growth and expanding access to finance for Nigeria’s youthful population.
(Ripples)