NEWS
FG Launches YOUTHCRED for Entrepreneurs, Offers Up to ₦2 Million Loans to Young Business Owners
The Federal Government has officially launched the YOUTHCRED for Entrepreneurs initiative, a major youth empowerment programme designed to provide affordable loans to young Nigerians and improve access to business financing for micro and small enterprises across the country.
The initiative, unveiled on Wednesday in Abuja, is expected to provide loans ranging from ₦200,000 to ₦2 million to an initial 500,000 young entrepreneurs, helping them overcome one of the biggest challenges facing small businesses, access to affordable credit.
Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the programme was created to bridge the financing gap for young entrepreneurs who are often unable to secure conventional bank loans due to stringent collateral requirements.
According to the minister, the initiative will unlock opportunities for thousands of young Nigerians seeking to expand their businesses and contribute meaningfully to the country’s economic growth.
Who Can Apply?
To qualify for the YOUTHCRED loan scheme, applicants must:
1. Be between 18 and 35 years old;
2. Own or operate a business;
3. Demonstrate responsible credit behaviour; and
4. Show evidence of cash flow and the ability to repay the loan.
Loan Amount and Repayment:
Eligible entrepreneurs can access loans ranging from:
1. Minimum: ₦200,000
2. Maximum: ₦2 million
Beneficiaries will also enjoy flexible repayment plans, with repayment periods ranging from one to 12 months, depending on their financial circumstances.
No Collateral or Guarantors Required:
One of the programme’s key attractions is that applicants are not required to provide collateral or guarantors before accessing the loans.
Instead, approval will be based on the applicant’s repayment capacity, business cash flow and credit behaviour, making the scheme more accessible to young entrepreneurs who may not possess traditional lending securities.
How to Apply:
Prospective applicants can apply by visiting the YouthCred website, where they will complete a short online application and undergo a verification process.
Applications will be processed through regulated financial institutions participating in the YOUTHCRED programme.
Applicants are expected to:
1. Meet the eligibility requirements;
2. Apply through participating financial institutions under the scheme;
3. Provide the necessary personal and business information for credit assessment;
4. Undergo evaluation based on cash flow, credit history and repayment capacity; and
5. Receive loan approval and disbursement if successful.
Who Can Benefit?
The scheme targets a broad range of young entrepreneurs, including:
Caterers;
Makeup artists;
Fashion designers and tailors;
Ride-hailing drivers;
Content creators;
Mechanics;
Young farmers;
National Youth Service Corps (NYSC) members; and
Other micro and small business owners.
How to Access Higher Loan Amounts
Borrowers can qualify for larger loan amounts over time by:
Repaying previous loans promptly;
Building a positive credit history; and
Completing the platform’s financial training modules.
Government Explains Focus on Entrepreneurs
Explaining the rationale behind the programme, Oyedele said the government deliberately focused on entrepreneurs because they make up the overwhelming majority of Nigeria’s small business sector.
“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,” Oyedele said.
He added that the programme was intended to help young Nigerians grow their businesses without the burden of traditional lending requirements.
Also speaking at the launch, the Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP), Uzoma Nwagba, disclosed that the government plans to scale up the initiative from 500,000 beneficiaries to one million Nigerians before the end of the year.
Nwagba urged beneficiaries to repay their loans as agreed, emphasizing that responsible borrowing and prompt repayment would ensure that more young entrepreneurs can benefit from the programme in the future.
The launch of the YOUTHCRED for Entrepreneurs initiative marks another step by the Federal Government to strengthen youth entrepreneurship, promote financial inclusion and support the growth of small businesses as part of broader efforts to stimulate economic development and job creation across Nigeria.