Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has launched the bank’s N500 million Tertiary Institutions Entrepreneurship Scheme (TIES).
In his address at a ceremony held in Abuja, Emefiele said the intervention would create an enabling business environment that supports innovation and also help to unleash entrepreneurial potential of young people in higher institutions of of learning by redirecting their focus from seeking white-collar jobs to embracing a culture of entrepreneurship.
He said it was imperative for the environment to provide support in re-orientating, training, and providing a financing model apt to the peculiarities of the sector within which the businesses operate.
Emefiele called on governments at all levels to evolve policy measures that will support entrepreneurial development among the youth in the country.
According to him, this is particularly important given that about 600,000 students graduate annually from the country’s tertiary institutions without commensurate employment opportunities in both the public and private sectors.
The CBN governor said the essence of the intervention was to create a paradigm shift from the obsession for white-collar jobs among graduates and promote entrepreneurship. He said the CBN was particularly concerned about the current level of unemployment among the youth population.
According to him, the intervention consists of three main components, including term loan, equity investment, and development grant.
He said the scheme would make it easy for youths to access credit and create jobs for themselves and others. He warned that the finance to be provided was not a grant but a loan, which should be used for the intended purposes, adding that entrepreneurship remains an integral part of any economy and that entrepreneurs play a key role in driving growth and innovation, which in turn results in job creation.
“With an estimated population of 213 million, out of which two-third are youth, aged under 35 years, the nation is faced with a historic opportunity, particularly as the demography continues to create clear evidence of their relevance to economic development, as accentuated by the global recognition of Nigerian tech start-ups and continued growth of businesses in the technology space owned by the youth.
“In realisation of this, the CBN has introduced several innovative financing programmes designed to extend low-cost financing to youth entrepreneurs across the country.
“These interventions have continued to receive resounding commendations, as they have proven effective in extending credit to youth entrepreneurs across the country.”
The scheme aims at providing an innovative financing model that will support the development of innovative entrepreneurial ideas among graduates and undergraduates of tertiary institutions in the country, the CBN governor said.
