N300,000 Youth Investment Fund – FG Explained
The Federal Government of Nigeria has defended its decision to limit the loan amount for beneficiaries of the Nigeria Youth Investment Fund (NYIF) to N300,000. The government stated that this measure was necessary to ensure that the fund reaches as many beneficiaries as possible. In a statement released by the Federal Ministry of Youth and Sports Development, it was revealed that the disbursement of the fund is being carried out in phases.
The Ministry explained that it had received over 3 million applications for the initial N12.5 billion made available for the NYIF. At the current cap of N300,000 per beneficiary, only about 41,000 beneficiaries could be covered. The ministry reiterated that the NYIF is not a grant but a loan that is aimed at supporting the youth to start small businesses or to inject funds into existing small businesses. The statement added that the NYIF was targeted at individuals and eligible businesses who meet the conditions and guidelines.
According to the Ministry, the framework specified N250,000 as the maximum for individuals and eligible businesses that are critical. They can access up to N3m, subject to meeting key criteria set in the guideline and conditions. The ministry noted that the N300,000 cap was ideal for the first tranche of the disbursement of the fund, as it enabled more beneficiaries to enjoy the facility. The Ministry assured beneficiaries that higher loan thresholds would be possible once additional funds were available in subsequent phases.
The Federal Government’s decision to limit the loan amount to N300,000 has caused disappointment among some beneficiaries. However, the Ministry of Youth and Sports Development maintained that it was necessary to ensure the spread of the fund to as many beneficiaries as possible, given the number of applications received. The Ministry also noted that it was important to start small and gradually increase the loan thresholds, considering that there are many first-time borrowers.
The Nigeria Youth Investment Fund (NYIF) was established by the Federal Government to boost the Nigerian economy’s resilience amid the COVID-19 pandemic. The NYIF aims to empower Nigerian youths financially, creating opportunities for them to leverage their talents, skills, and enterprise in promoting sustainable economic development. The initiative targets young people aged between 18 and 35 years and is expected to reach 500,000 youths annually. The fund is expected to help bridge the financing gap between the youth and their aspirations, leading to job creation and economic growth.
In conclusion, the Federal Government’s decision to limit the loan amount to N300,000 for the current beneficiaries of the Nigeria Youth Investment Fund (NYIF) was taken to ensure the spread of the fund to as many beneficiaries as possible. The Ministry of Youth and Sports Development noted that the NYIF was not a grant but a loan aimed at supporting the youth to start small businesses or to inject funds into existing small businesses. The Ministry also assured beneficiaries that higher loan thresholds would be possible once additional funds were available in subsequent phases. The NYIF is a commendable initiative that will go a long way in promoting sustainable economic development in Nigeria.