Nigerian Youth Investment Fund – How to Apply

The Federal Ministry of Youth and Sports Development has launched the Nigerian Youth Investment Fund. The Central Bank of Nigeria is funding this important investment. Furthermore, the NYIF comes with a lot of opportunities. The aim of this investment is to fund and assist young Nigerian Youth. Additionally, the focus is to generate at least 500, 000 jobs in a 3 year period.

Program Type: Youth Investment Fund (investment loan)

Initiative Sponsor(s): The Federal Government of Nigeria

Program Targeted at: Nigerian individuals and businesses owners (aged between 18 and 35 years old)

Funding Amount: N250, 000 to N3, 000,000

Interest Rate: 5% per annum (All inclusive)

Loan Term: 5 years

In this article, we discuss everything you need to know about the NYIF. We will discuss areas of interest as well as how to apply for this initiative.

What is the Nigerian Youth Investment about?

The Nigerian Youth Investment fund is all about empowering the youth. Their mission is to invest in the youth to help build something sustainable. The fund looks at the ideas of the youth and then revolutionizes the idea. Additionally, this assists in building an enterprise while also creating job opportunities.

Youth who have innovative ideas and talents are the focus of NYIF. They then use this as an opportunity to help create young entrepreneurs. Furthermore, this initiative contributes to the national development of the country.

Candidates are typically between 18 and 35 years old. NYIF provides them with the support for expansion and establishing their business ideas. In essence, this helps place them in social and economic sectors.

Objectives of the NYIF

The NYIF is a promising fund for the youth. Their objective is to help create job opportunities and employment for the youth. This objective will have a positive outcome on the future of the economy. Furthermore, the NYIF promises to provide financial support to youth-owned businesses. Thus enabling them to build and focus on their business ideas. Lastly, the initiative aims to boost managerial expertise. This will help develop and train young entrepreneurs to run a successful business.

Who is eligible for the National Youth Investment Fund?

To qualify for this fund, you must meet the following requirements:

For registered businesses:

  1. A business plan that summarizes what the business is about or completed questionnaire
  2. Business registration with the Corporate Affairs Commission
  3. A valid bank verification number of the directors
  4. An entrepreneurial training certificate from FMYSD EDIs
  5. A provision of tax identification number

For individuals and non-registered businesses:

  1. A business plan summary or a completed questionnaire
  2. Aged between 18-35 years old
  3. Individuals must have a bank verification number
  4. An ID document
  5. An  entrepreneurial training certificate (FMYSD)

An individual will only be eligible once he/ she has obtained the above-mentioned criteria.

Eligible businesses

Here are some of the business sectors that are eligible for the National Youth Investment Fund:

  • Creative sector
  • Construction
  • Hospitality
  • Tourism
  • Technology or innovation
  • Agriculture
  • Trading services
  • Renewable energy sector and green economy
  • Manufacturing
  • Healthcare value chain
  • Logistics and supply chain
  • FMYSD/CBN may also determine Other sectors 

How it works

The National Youth Investment fund has made the process quite simple. Simply follow these steps if you’re interested in applying:

1.      Get training

The first step requires individuals to attend entrepreneurship training. This allows them to learn the basics of entrepreneurship. Individuals can visit www.youthandsport.gov.ng to find the nearest approved institute. FMYSD must approve all entrepreneurship training. In addition, the course is offered online for 5 days and is completely free.

2.      Apply for a loan

Individuals will then need to apply for a loan after getting adequate training. This can be done by applying through NIRSAL Microfinance Bank. It should be noted that the loan term is usually around 5 years. Furthermore, the interest rate is roughly 5% per annum. Individuals will have access to up to ₦250,000.00. Additionally, registered businesses can access up to ₦3,000,000.00.

3.      Proceed to submitting an application

The next step requires applicants to submit an application. This is done by visiting https://nyif.nmfb.com.ng and clicking on “Apply Here”. The website will then redirect applicants to the application form.

4.      Get Approval

First, NMFB will conduct a loan assessment. During this process, the NMFB will have a look at the risk assessment criteria. Thus, allowing them to make an appropriate decision. Afterward, CBN will review the recommended applicant for final approval.

5.      Final approval from CBN

CBN will review all potential applicants. Once approved, CBN gives the final approval for disbursement to NMFB. This is the last and final step.

How to apply

Here’s how to apply for the Nigerian Youth Investment Fund:

  1. Visit www.nyif.nmfb.com.ng on your browser.
  2. Click on “apply here” to continue
  3. Fill in your personal details i.e. your given name and surname.
  4. Enter your 11 digit BVN number
  5. Thereafter, proceed to entering your email address, phone number and gender
  6. Next, enter your residential information and click on “continue”
  7. Proceed to enter your geo-political zone. (North West, North East, North Central, South West, South East or South South)
  8. Next, select your highest level of education and click “Next”
  9. Lastly, select your preferred training center and how you heard of the NYIF
  10. Tick the box to ensure that your information is correct
  11. Click on “Submit” and proceed

Documentation Required

The following documentation will be required when applying:

  • A training certificate from accredited by FMYSD EDIs
  • Valid bank verification number for both individuals and directors
  • Registration with the Corporate Affairs Commission (Certificate of Incorporation and Form CAC 2A)
  • An automated two years bank statement analysis.
  • Evidence of Local Government Indigene Certificate
  • A birth certificate copy
  • Valid ID document (driver’s license, passport, voters card or ID)
  • A Summary Business plan / Questionnaire
  • Completed application form
  • Valid Tax Identification Number

Terms and conditions

Here are some of the terms and conditions set by the National Youth Investment Fund:

  • Acquired immovable and movable collateral options shall be registered under the National Collateral Registry (NCR)
  • Execution of GSI Mandate
  • Forfeiture Undertaking and Power of Attorney agreement to be signed by customer, giving NMFB rights to take over pledged assets in instance of loan default.
  • Loan amount must match loan repayment and loan purpose.

The above terms and conditions have been quoted on the NMFB website. For more information visit the NYIF website.

Repayment structure

The repayment structure is on an installment basis. This means that entrepreneurs will be required to repay the loan on a monthly basis. Additionally, business owners should always read the loan terms before agreeing to anything.  

Possible reasons for being rejected

Thousands of applicants submit to the NYIF, however, not all get accepted. Most applicants get turned down because they provide inaccurate details. If you are interested in applying always ensure that your contact details are correct.

Furthermore, applicants provide invalid information on their loan applications. It’s vital to ensure that individuals do not have existing AGSMEIS or COVID-19 Loans. Additionally, applicants who are over the age of 35 will also be rejected. This program is only aimed at those who are between the age groups of 18-35 years old.

Applicants also need to have a good credit history. If you have a poor credit score you will undeniably be rejected.  Lastly, individuals will also be turned down if they fail to provide a valid bank verification number (BVN). For this reason, ensure that you have entered the correct BVN.

What are the pros and cons of this fund?

Let’s look at some of the pros and cons now that we have discussed the basics.

Pro- Low interest rate

The ministry has set a relatively low-interest rate for this fund. This makes repayments a low easier to pay off. Furthermore, the current interest rate stands at only 5%. Therefore, entrepreneurs will have a fixed interest rate.

Pro- No collateral

Most loans require some form of collateral. However, the NYIF does not require any collateral from applicants. As a result, this gives entrepreneurs some peace of mind.

Pro- Opportunity to grow

This initiative offers young entrepreneurs an excellent opportunity to grow their businesses. It gives them a chance to succeed and create job opportunities. As a result, this initiative is a win-win for both the economy and small business owners.

Pro- Creates jobs

The program will help create jobs and thus increase economic growth.

Con- Admin and documentation

One of the downsides to applying for this fund is the paperwork it requires. Entrepreneurs will have to submit a lot of documentation. This can quickly become a tedious task. Furthermore, the admin can be very time-consuming.

Con- Mistakes will not be overlooked

Entrepreneurs are only given one chance to apply. Therefore, there is no room for error. If an applicant provides any incorrect information they will be rejected.

Con- Only those with a good credit history can apply

Unfortunately, those who have bad credit will be turned down. This limits the opportunity to help those who are in debt.

FAQ

Here are some frequently asked questions

What is the point of the NYIF

The basis of the program is to create young entrepreneurs and jobs in the country.

Is NYIF a grant or a loan?

The NYIF program is a government initiative. However, it is a loan with a 5-year tenor extension.

When does the program end?

The NYIF program will end in 2023. With that said, the program is done in batches. Individuals are advised to continuously visit the website.

How does an individual get the required training?

Individuals will be sent a training invitation message after they have applied for the loan. This will direct them to the online training class or center.

Is the training free?

Yes, the training is free.

What is the training about?

Simply put, the training is about entrepreneurial skills and the importance of the fund.

How long is the training program?

The training program runs for 5 days.

How to find out if you’re shortlisted?

An SMS message is sent if the application is approved. Additionally, candidates are also publicly published.

When will I receive the loan?

The loan payments are usually done in batches. Therefore, it can differ for each person; depending on the batch they’re in.  

Where to check loan status, approval and updates?

All updates can be found on the NYIF portal. Users can log in to their accounts to check any updates.

In conclusion

The NYIF offers Nigerian youth an excellent opportunity to establish small businesses. Furthermore, they assist with free training and a loan. In essence, this can help small businesses start out and transition into something successful.

An applicant should be between the ages of 18 and 35 to be eligible. Furthermore, the NYIF helps both registered and non-registered businesses. Individuals and registered businesses owners will have to present a number of documents. This is to ensure that everything is in order when applying.

The NYIF has funded N75 billion and has so far helped over 6000 benefactors. In 2022, they promise to open up applications to fund even more young entrepreneurs. With that said, the initiative has so far been a success.

NYIF hopes that its efforts can assist young entrepreneurs in contributing to the economy. Furthermore, they would like this program to help create more jobs.

Applicants should be aware that the application process is extremely lengthy. Applicants need to meet all the requirements before getting approved.  Furthermore, NYIF requires that all candidates receive adequate training too.

Small business owners can expect to receive between N250, 000 and N3 million. This facility has a 5% interest rate and has a maximum tenor of 5 years. In addition, repayments must be made in installments. Furthermore, NMFB determines the installment term.

Lastly, NYIF is subject to approval. Individuals will need to have a good credit history to apply for the loan. Having said that, this program presents a great deal of promise to the youth of Nigeria

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