The Central Bank of Nigeria (CBN) has launched the Tertiary Institutions Entrepreneurship Scheme (TIES) program, designed to provide financial assistance to undergraduates and business graduates.
The Governor of the Central Bank of Nigeria, Godwin Emefiele, launched the TIES in Abuja yesterday.
The plan is part of the CBN’s drive to address the two challenges of youth unemployment and underemployment in Nigeria.
As he given speech during the conference, Emefiele said it is imperative that government come up with plans to support entrepreneurship among the youth, so there is a need for scheme.
He said, “Every year about 600,000 Nigerian high school students graduate, and without creating decent employment in both the public and private sectors, it is imperative that the government at all levels develop programs to support businesses in between. our youth.
“Such measures will create a more efficient business system that supports innovation and allows young people to express their entrepreneurial potential, by shifting their focus from white supremacy to entrepreneurial development.
“The ecosystem should provide support for the reorganization, training, and development of a financing system that is tailored to the specific sector in which the business operates.”
Founded in collaboration with Nigerian polytechnics and universities, the program aims to attract graduates by shifting their focus from white-collar occupations to professional. involved as a means of economic development and job creation.
The CB governor stated that, in light of the dearth of suitable employment prospects, it has become critical for governments at all levels to implement policy measures to assist youth entrepreneurial growth. TIES, according to the governor, would create an enabling business climate that encourages innovation and allows young people to realize their entrepreneurial potential.
3 verticals of the scheme
According to the apex bank, the scheme was designed to address three (3) verticals of the segment, and these are:
i. The Term Loan Component – provides direct credit opportunities to graduates of Nigerian polytechnics and universities of not more than seven years post-graduation.
An applicant, if successful, shall be eligible for a maximum of N5 million for an individual, sole-proprietorship or small company; and a maximum of N25 million for a partnership or company. The tenor for the facility is maximum of five (5) years, with a one-year moratorium, and at an interest of 5% per annum, which shall revert to 9% from March 2022. The pilot phase of the Scheme is presently being implemented through the Bank of Industry (BOI) with the development of an application portal and processing of submitted applications.
ii. The Equity Investment Component – is designed to support start-ups, existing businesses requiring expansion, and ailing businesses seeking resuscitation. The Component shall be implemented under the Bank’s AgSMEIS Equity Window. Thus, the investment limit shall be subject to the limit prescribed by the AGSMEIS Guidelines and the investment period not more than ten (10) years.
iii. The Developmental Grant Component – is aimed at raising awareness and visibility of entrepreneurship among undergraduates of Nigerian tertiary institutions.
Here, polytechnics and universities in Nigeria shall compete in a national biennial entrepreneurship competition where undergraduates are presented by the tertiary institutions to pitch innovative entrepreneurial or technological ideas with transformational potential.
Three (3) top institutions at the regional levels shall proceed to the national level, where the top five (5) shall be awarded grants ranging between N120 million and N250 million.
In his concluding remarks, Emefiele said that with the lunch of the scheme, and other programmes such as this, the higher institutions will not only be ready and able to provide real solutions to the various challenges emanating from their immediate environment and even beyond, but who can compete favourably with their counterparts around the world.