The Ministry of Youth and Sports Development has been following with interest the reaction of some beneficiaries of the Nigeria Youth Investment Fund (NYIF), particularly those expressing disappointment at the N300,000.00 cap on disbursement under the first tranche of N12.5 billion.
Firstly, the Ministry wish to state that the framework specified 250,000:00 as the maximum for individual and eligible businesses that are critical can access up to 3 million subject to meeting key criteria set in the guideline and conditions.
However, considering the number of applications received, there was need to ensure spread and enable more beneficiaries enjoy the facility.
It is pertinent to state that the ministry received over three million applications for the N12.5 billion that is available; and at the current cap of N300,000.00 per beneficiary, only about 41,000 beneficiaries can be covered.
The Ministry is desirous of reaching as many beneficiaries as possible and possible hence the decision to limit loans to the current amount.
It may also interest you to know that some of the applicants have also benefited much from existing intervention, which has supported them and are impacting the economy.
It is important we start and increase gradually, considering that there are lots of first time borrowers as well and that the programme double edge, which includes capacity building, mentoring, monitoring and support will sustain the beneficiaries and guarantee expected outcome.
Higher loan thresholds would be possible once additional funds are available.
The Ministry wishes to state again that NYIF is not a grant, but a loan targeted at supporting the youth to start small businesses or to inject funds into existing small businesses.
Director (Press & Public Relations)
For: Honourable Minister.