The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative to provide affordable loans for young business owners and improve access to credit financing.
The scheme, unveiled in Abuja on Wednesday, will provide loans ranging from N200,000 to N2 million to about 500,000 young entrepreneurs.
According to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the initiative is aimed at supporting young Nigerians who face challenges accessing conventional bank loans due to collateral requirements.
Applicants eligible for the programme must be between 18 and 35 years old, own or operate a business, demonstrate responsible credit behaviour, and provide evidence of cash flow and repayment capacity.
Under the scheme, beneficiaries can access loans between N200,000 and N2 million, with repayment periods ranging from one to 12 months, depending on their financial situation.
Applicants can apply by visiting the YouthCred website, completing an online application, and undergoing a verification process through participating financial institutions.
The scheme does not require collateral or guarantors, as approved loan amounts will depend on the applicant’s credit history, business cash flow, and ability to repay.
Beneficiaries targeted under the programme include caterers, makeup artists, fashion designers, ride-hailing drivers, content creators, mechanics, young farmers, National Youth Service Corps members, and other micro and small business owners.
The government said borrowers who repay promptly, maintain a positive credit history, and complete financial training modules may qualify for higher loan limits in the future.
Speaking at the launch, Oyedele said the initiative was designed to unlock the entrepreneurial potential of young Nigerians by providing access to affordable credit.
He noted that more than 90 per cent of Nigeria’s micro, small and medium enterprises are built around individuals, including tailors, ride-hailing drivers, fashion designers, caterers, content creators, mechanics, and young farmers.
The Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the government plans to expand the programme to 500,000 beneficiaries initially and one million Nigerians before the end of the year.
He urged beneficiaries to repay their loans promptly, stressing that responsible borrowing would enable more entrepreneurs to benefit from the initiative.
