The Federal Government of Nigeria (FGN) has launched YOUTHCRED, an initiative targeting 500,000 young entrepreneurs with collateral-free loans of between N200,000 and N2,000,000 to assist in expanding their business.
The scheme was unveiled in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stating that it will be implemented by the Nigerian Consumer Credit Corporation (CREDICORP).
He 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.
“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.”
In his remarks, Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, said, "Hard-working 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.”
