FG launches N2m loan scheme for 500,000 young entrepreneurs

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 build or expand their businesses.

The program, known as YOUTHCRED for Entrepreneurs, was launched in Abuja on Wednesday as part of the Federal Government’s broader efforts to increase access to credit for young business owners who are often excluded from conventional lending opportunities.

Speaking at the launch, Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, said the initiative was designed to unlock the entrepreneurial potential of Nigeria’s young generation 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 by the financial resources necessary to achieve success.

Explaining the rationale behind the program, Oyedele noted that Nigeria’s business landscape is dominated by micro-enterprises which often find it difficult to obtain loans because they do not have formal business structures or collateral.

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“You may ask why the focus is on entrepreneurship? This is because more than 90 percent of MSMEs in Nigeria are micro-enterprises established by individuals, from tailors to vehicle drivers, fashion designers, caterers, content creators, mechanics and young farmers.

“Many remain marginalized from formal funding because traditional lending more often demands the incorporation of audited accounts and collateral that early-stage entrepreneurs do not have and cannot provide.”

He explained that this new credit facility departs from conventional loan requirements by assessing applicants based on their financial behavior and ability to pay, not asset ownership.

“Through YOUTHCRED for Entrepreneurs, eligible Nigerians aged 18 to 35 can access financing ranging from N200,000 to N2 million, not based on inherited wealth or collateral, but solely based on responsible credit behavior, cash flow and repayment capacity provided through regulated financial institutions.”

Oyedele urged potential beneficiaries to view this facility as a loan that must be repaid, stressing that prompt repayment will ensure the program 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 facilitated over N47 billion in consumer credit to over 301,000 Nigerians in the last two years without recording any non-performing loans.

He explained that this entrepreneurship-focused initiative is the third phase of the Federal Government’s youth credit program, following previous interventions targeted at members of the National Youth Service Corps and young Nigerian workers.

Nwagba revealed that the company intends to expand the scheme to reach 500,000 entrepreneurs in the near future and one million beneficiaries before the end of the year.

“Nigeria’s hard-working youth deserve structured credit, not charity. Over 90 percent of our MSMEs trade in the name of the people who built them, so that’s how we built this line of credit—for individuals, not just entities. Every naira is tied to viability, payment discipline and business growth because when builders win, then Nigeria wins.”

Also speaking at the event, Minister of Budget and Economic Planning, Senator Abubakar Bagudu, Minister of Youth Development, Ayodele Olawande Wisdom, and Minister of Women’s Affairs, Imaan Sulaiman-Ibrahim, commended President Bola Tinubu’s efforts to expand financial inclusion and increase economic opportunities for young Nigerians.

They described the YOUTHCRED for Entrepreneurs initiative as a major intervention that will strengthen small businesses, encourage entrepreneurship, create jobs and contribute to inclusive economic growth.

The program is the latest component of the Federal Government’s consumer credit expansion strategy implemented through CREDICORP. It is specifically designed to address the financing challenges faced by micro, small and medium enterprises by providing affordable loans without the strict collateral requirements of traditional commercial loans.

Government officials said the initiative is in line with the goals of the New Hope Agenda to increase entrepreneurship, stimulate private sector growth and expand access to finance for Nigeria’s young population.