FG Unveils YouthCred Initiative to Empower Young Entrepreneurs with Affordable Loans

In a bid to boost the entrepreneurial spirit of young Nigerians, the Federal Government has launched the YouthCred initiative, a loan scheme designed to provide accessible and affordable credit to young business owners. According to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the programme aims to support 500,000 young entrepreneurs with loans ranging from N200,000 to N2 million. To be eligible, applicants must be between 18 and 35 years old, own or operate a business, and demonstrate responsible credit behaviour. They must also show evidence of cash flow and ability to repay the loan. The loan scheme is open to various businesses, including catering, fashion design, makeup artistry, content creation, and ride-hailing services. Interested applicants can sign up by visiting the YouthCred website and completing a short online application, which will be processed through participating financial institutions. The repayment period is flexible, ranging from one to 12 months, and does not require collateral or guarantors. Instead, the loan amount approved will depend on the applicant's repayment capacity, credit behaviour, and business cash flow. The Minister of Finance emphasized that the initiative is designed to unlock the entrepreneurial potential of young Nigerians by providing access to affordable credit. He noted that over 90 per cent of Nigeria's MSMEs are micro enterprises built around individuals, and the programme is intended to help them grow their businesses without the burden of traditional lending requirements. The Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, urged beneficiaries to repay their loans promptly, stressing that responsible borrowing would allow more young entrepreneurs to benefit from the initiative. Borrowers can also increase their loan limit by repaying previous loans on time, building a positive credit history, and completing the platform's financial training modules.