The Federal Government has launched a new credit scheme that will allow young entrepreneurs to access loans of between N200,000 and N2 million to establish, sustain and expand their businesses, in a move aimed at boosting entrepreneurship and improving financial inclusion.
The initiative, known as YOUTHCRED for Entrepreneurs, was unveiled on Wednesday in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The programme is being implemented by the Nigerian Consumer Credit Corporation (CREDICORP) and is expected to reach more than 500,000 young entrepreneurs nationwide.
Speaking at the launch, Oyedele said the scheme was introduced to tackle one of the biggest challenges confronting young business owners – limited access to finance due to the absence of collateral, audited financial statements or formal business registration.
He explained that Nigerians between the ages of 18 and 35 would be eligible to obtain loans ranging from N200,000 to N2 million through regulated financial institutions.
Unlike traditional lending models, applicants will be assessed based on responsible credit behaviour, cash flow and repayment capacity rather than inherited wealth or physical collateral.
According to the minister, the programme reflects the federal government’s commitment to building a more inclusive economy by giving young entrepreneurs access to the financial resources needed to transform innovative ideas into successful businesses.
Oyedele noted that improving access to affordable credit would encourage innovation, generate employment opportunities and strengthen Nigeria’s micro, small and medium-sized enterprises (MSMEs), which he said are dominated by individually owned micro-enterprises.
He, however, urged beneficiaries to regard the facility as a loan that must be repaid and not as a government grant, stressing that timely repayment would ensure the programme remains sustainable and enables more young Nigerians to benefit.
The minister added that responsible borrowing and repayment would promote financial discipline while strengthening confidence in Nigeria’s consumer credit ecosystem.
In separate goodwill messages, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu; the Minister of Youth Development, Ayodele Olawande; and the Minister of Women Affairs, Imaan Sulaiman-Ibrahim, described the initiative as a major step toward empowering young Nigerians and expanding access to finance.
They said the programme aligns with the federal government’s broader economic agenda of promoting entrepreneurship, productivity, digital inclusion and skills development while improving access to consumer credit.
Also speaking, the managing director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, disclosed that the corporation had disbursed more than N47 billion in consumer credit to over 301,000 Nigerians within the last two years, maintaining a zero per cent non-performing loan rate.
Nwagba explained that the entrepreneurs’ credit initiative marks the third phase of the YOUTHCRED programme, following earlier phases designed for National Youth Service Corps (NYSC) members and employed young Nigerians.
He said CREDICORP plans to extend the current phase to over 500,000 beneficiaries and ultimately reach one million Nigerians before the end of the year.
“Hardworking young Nigerians deserve structured credit, not charity,” Nwagba said, describing the initiative as a pathway to unlocking the productive potential of the country’s youth.
