FG Launches N2m Loan Scheme for 500,000 Young Entrepreneurs

• The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative, offering loans of N200,000 to N2 million to 500,000 young entrepreneurs aged 18 to 35 to help them start, grow and expand their businesses without requiring traditional collateral.

The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative, a new financing programme aimed at providing affordable loans of between N200,000 and N2 million to 500,000 young entrepreneurs across Nigeria.

The scheme, unveiled in Abuja on Wednesday, is designed to improve access to finance for young business owners by helping them start, sustain and expand their enterprises without the traditional barriers associated with commercial bank loans.

Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the initiative as a strategic effort to unlock the entrepreneurial potential of young Nigerians and stimulate inclusive economic growth.

According to him, the programme demonstrates the Federal Government’s commitment to building an economy where young people have not only innovative ideas but also the financial support needed to turn those ideas into successful businesses.

Explaining why the initiative focuses on entrepreneurs, Oyedele said, “You may want to ask why the focus on entrepreneurs? That’s because more than 90 per cent of Nigeria’s MSMEs are micro enterprises built around individuals, from the tailor to the ride-hailing driver, the fashion designer, the caterer, content creator, the mechanic, and the young farmer.”

He noted that many young entrepreneurs remain excluded from formal financing because traditional lenders often demand collateral, audited financial statements and company registration, requirements many small businesses cannot meet.

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

The minister urged beneficiaries to treat the facility as a repayable loan rather than a grant, stressing that prompt repayment would allow more young entrepreneurs to benefit from the programme in the future.

Also speaking, the Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, disclosed that the corporation has facilitated over N47 billion in consumer credit to more than 301,000 Nigerians over the past two years while maintaining zero per cent non-performing loans.

Nwagba explained that the new initiative is the third phase of the government’s youth credit programme, following previous interventions targeted at National Youth Service Corps (NYSC) members and employed youths.

He said the goal is to expand the programme to 500,000 beneficiaries initially and eventually reach one million young Nigerians before the end of the year.

According to him, “Hardworking young Nigerians deserve structured credit, not charity. More than 90 per cent of our MSMEs trade in the name of the person who built them, so that is exactly how we built this credit line—for the individual, not just the entity.”

Other government officials at the launch, including the Ministers of Budget and Economic Planning, Youth Development and Women Affairs, praised the initiative, describing it as a major step towards expanding financial inclusion, supporting entrepreneurship and creating jobs.

The YOUTHCRED for Entrepreneurs programme forms part of the Federal Government’s broader consumer credit expansion initiative under the Renewed Hope Agenda, aimed at making affordable financing accessible to young Nigerians who are often unable to secure conventional bank loans.