The Nigeria Youth Investment Fund (NYIF) has completed its pilot disbursement of loans totalling N165,700,000 to 239 beneficiaries ahead of the processing of the over three million applications so far received. NYIF is driven by the Ministry of Youth and Sports Development.
The fund, approved by the Federal Executive Council on July 22, 2020, is being implemented in partnership with the Central Bank of Nigeria, Ministry of Finance, Budget and National Planning and disbursed through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance Bank (NMFB).
Application data showed that a total of 3,120,107 have registered for the pre-assessment/training to benefit from the N75 billion three-year financing for youth-owned businesses and ideas.
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Of the about 1,000 processed as part of the pilot disbursement, a total of 94 were disqualified after training as a result of existing government (COVID-19/AGSMEIS) loan that they have benefitted from.
A total of 500 applicants have been invited by NMFB to apply for the NYIF loan after training and successful due process check. Of the number, 393 have completed the loan application process out of which 293 applied early and their loan was processed and sent to CBN for approval at a total sum of N191,700.000. On approval by CBN, 239 have been successfully disbursed at a total sum of N165,700,000.
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The NMFB said the reason for the disbursement to only 239 out of 293, was that transfer failed to the account numbers of the affected applicants due to their account type that does not receive deposit beyond a certain sum and system failure.
Also, the low number of trained beneficiaries compared to the number of applications was as a result of the non-availability of funds as there was no budgetary provision for the exercise in 2020.
According to the ministry, more applicants would be enrolled after been screened and confirmed as not presently benefitting from similar initiatives from the government.
They would be invited to submit business proposals, following which those who meet the requirements for the loans would be selected for the free training and then be given loans ranging from N250,000 for individuals to N3,000,000 for registered businesses.
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