The Federal Government has announced a new loan plan that would provide qualifying young entrepreneurs with between N200,000 and N2 million to establish, develop, and expand their enterprises as part of efforts to enhance access to finance and boost economic growth.
The initiative, called YOUTHCRED for Entrepreneurs, was launched on Wednesday in Abuja by Taiwo Oyedele, Minister of Finance and Coordinating Minister for the Economy.
The Nigerian Consumer Credit Corporation (CREDICORP) which also has provided loan procedure for gadgets , laptops, phones etc.,is implementing the scheme, which is intended to help over 500,000 young entrepreneurs across the country.
Speaking at the opening, Oyedele stated that the program was created to solve the funding issues encountered by many business owners who are unable to obtain traditional bank loans due to a lack of collateral, audited financial records, or formal firm registration.
He said that Nigerians aged 18 to 35 can obtain loans ranging from N200,000 to N2 million from authorized financial institutions, with eligibility based on responsible credit behaviour, cash flow, and repayment capacity rather than inherited wealth or collateral.
According to the minister, the programme demonstrates the Federal Government’s commitment to creating an inclusive economy by providing young entrepreneurs with the financial tools they need to turn innovative ideas into profitable enterprises.
He stated that improving access to inexpensive finance would spur innovation, generate jobs, and develop Nigeria’s micro, small, and medium-sized firms (MSMEs), noting that more than 90% of the country’s MSMEs are micro-enterprises run by individuals.
Oyedele urged users to approach the facility as a repayable loan rather than a government grant, emphasizing that quick repayment would ensure the program’s longevity and enable additional young entrepreneurs to benefit.
He also stated that careful use of the loan facility would promote financial discipline and boost confidence in Nigeria’s consumer credit sector.
Uzoma Nwagba, Managing Director and Chief Executive Officer of CREDICORP, also spoke, stating that the corporation had provided more than N47 billion in consumer credit to over 301,000 Nigerians over the last two years while maintaining a non-performing loan rate of zero percent.
Nwagba stated that the entrepreneurs’ initiative is the third phase of the YOUTHCRED programme, following prior phases aimed at National Youth Service Corps (NYSC) members and employed young people.
He revealed that CREDICORP intends to expand the scheme to reach 500,000 people in the current phase, and eventually one million Nigerians by the end of this year.
“Hardworking young Nigerians deserve structured credit, not charity,” Nwagba remarked.
He stated that the program was intended to help individual entrepreneurs while also encouraging repayment discipline and long-term corporate success.
