FG introduces YOUTHCRED, targets 500,000 youths with business loans

The Federal Government of Nigeria has rolled out an innovative financing programme, known as YOUTHCRED for Entrepreneurs, which aims to offer youth entrepreneurs affordable loans ranging from ₦200,000 to ₦2 million each.

This programme was introduced in a press conference held in Abuja on Wednesday and seeks to address the challenges faced by young entrepreneurs regarding funding through improved access to finance and growth of micro, small and medium sized enterprises.

While unveiling the new financing program, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, hailed it as an important step towards unlocking the entrepreneurial potential among Nigerian youths.

According to him, the programme shows that the government intends to create an economy which would enable its youth not only to have skill sets and ideas but also access to capital to turn their ideas into reality.

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.

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.