The Central Bank of Nigeria (CBN) has issued regulatory guidelines for the implantation of its Tertiary Institutions Entrepreneurship Scheme (TIES) to harness the potential of graduate entrepreneurs.
This development was disclosed by the apex bank on Wednesday through a document released and signed by the bank’s director, development finance, Yusuf Yila Philip.
The CBN stated that the objective of the TIES was to enhance access to finance for undergraduates and graduates of polytechnics and universities in Nigeria with innovative entrepreneurial and technological ideas.
The scheme which is targeted at financing 25,000 gradpreneurs annually, will, in turn, create an additional 75,000 sustainable jobs annually, according to the bank.
The CBN said that start-ups and existing businesses in areas such as agribusiness, information technology, creative industry, as well as science and technology are eligible for financing under the scheme.
It further noted that priority would be given to innovative entrepreneurial activities with high potentials for export, job creation and transformational impact.
The apex bank explained that the scheme will be implemented through three components namely term loan, equity investment and developmental components.
Under the term loan component, an individual project can access a maximum loan of N5 million with a five-year tenor and interest rate of five percent per annum (nine percent effective from March 1, 2022, or as may be prescribed by the CBN)
For partnership/company projects, the loan is limited to N25 million.
The document partly read, “Applicants under the Scheme shall be graduates of Nigerian polytechnics and universities with first-degree certificate (BSc/HND/ or its equivalent); National Youth Service Certificate (NYSC) discharge or exemption certificate; Certificate of Participation issued by polytechnics and universities evidencing entrepreneurship training; and Not more than 7 years post-NYSC.”
The CBN added that the equity investment component shall be in the form of injection of fresh capital for start-ups, expansion of established businesses or reviving of ailing entrepreneurial businesses.
It further states that only undergraduates of Nigerian polytechnics and universities are eligible to participate under the developmental component.