It looks like youth-led startups in Nigeria may have some hope on the horizon. The country’s Federal Executive Council (FEC), the executive arm of Nigeria’s government, has approved the establishment of the Nigerian Youth Investment Fund (NYIF) to the tune of N75 billion ($193m).
“For the first time in the history of Nigeria, the Federal Executive Council today approved the establishment of the Nigerian Youth Investment Fund (NYIF) to the tune of N75 billion. This fund is meant to create a special window for accessing credit facilities and financing on the part of our youths that will help to fund their ideas, innovations and also support their enterprise,’’ Nigeria’s Minister of Youth and Sports Development, Mr. Sunday Dare said.
Here Is What You Need To Know
Has The Youth Bank Been Established?
Currently, there is no structure for the Youth Bank on ground; however given that an executive approval for its establishment has been obtained, the bank would, most likely, soon be established.
“The second approval that will be secured is for the Ministry of Youth and Sports Development to play a lead role in working on necessary steps that need to be taken in terms of legislation, organisation and other aspects of financing,” Dare said.
“The Federal Ministry of Finance, Budget and National Planning will take the lead when it comes to the aspect of financing, working with the CBN, the Ministry of Youth and Sports Development and other relevant MDAs,’’ he added.
Who Is Qualified To Obtain Funds Under The New Scheme?
The NYIF, also tagged ‘the Youth Bank’, is specifically meant to finance youth with innovative ideas and solutions. Although the fund is said to be targeted at Nigerian youths within the age range of 18 and 35 years, youth-led startups look like the most targeted under the scheme.
“A couple of other details will be released later, but I think the most important thing is that the N75 billion Nigerian Youth Investment Fund, to cater specifically for this target group, a population of over 68 million, got the attention and support of the Federal Executive Council today and this fund will be assessed by our youths, once they are able to present their ideas, they can assess this fund directly,” Dare said.
Read also: Why Lagos Is The Most Valuable Startup Ecosystem In Africa
How To Go About Pitching The Fund
In the meantime, there is no platform for applying for the fund, but Mr. Dare said the process of the Youth Bank would be online-based and would be fair to all youth aged between 18 and 35 years, regardless of their ethnicity or social status.
However, while application for the fund would be online, the youth-led businesses targeted would also have to physically pitch their ideas in any of the 125 micro-credit banks across Nigeria to be able to access the Youth Investment Fund.
In What Form Would The Fund Come?
According to Mr. Dare, the fund may come by way of loan or other forms of financing; however it is yet unclear whether other options such as equity or grant funding may be considered.
Interested youth-led startups should keep checking this space for updates.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.