Federal Government has launched ‘YouthCred for Entrepreneurs’, a new credit initiative designed to provide affordable financing for young Nigerian entrepreneurs, to expand access to capital, create jobs and stimulate economic growth through youth-led businesses.
The programme, unveiled in Abuja by the Nigerian Consumer Credit Corporation (CREDICORP), will provide eligible entrepreneurs aged 18 to 35 with loans ranging from ₦200,000 to ₦2 million, based on their credit behaviour, cash flow and repayment capacity rather than traditional collateral requirements.
During the launch, the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, described the initiative as a fulfilment of President Bola Tinubu’s promise to empower young Nigerians through access to responsible consumer credit.
Mr Oyedele said the programme addresses one of the biggest challenges confronting young entrepreneurs, limited access to affordable finance despite possessing viable business ideas and the determination to succeed.
Nigeria ranks highest number of entrepreneurs
According to him, while Nigeria ranks among the countries with the highest number of entrepreneurs per capita, many promising businesses fail to take off because entrepreneurs lack the capital needed to purchase equipment, inventory and other productive assets.
“Today is about much more than credit. It is about opportunity, trust and enterprise. It is about unlocking the productive potential of millions of young Nigerians,” the minister said.
Mr Oyedele explained that YouthCred forms part of the Federal Government’s broader plan to build a credit-driven economy where responsible borrowing and repayment create opportunities for economic mobility.
The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the initiative demonstrates President Tinubu’s commitment to ensuring that the gains of macroeconomic reforms translate into tangible opportunities for young Nigerians.
He explained that the Consumer Credit Fund introduced in the 2024 budget was conceived not to finance everyone directly but to de-risk lending and encourage financial institutions to extend credit to millions of hardworking Nigerians previously excluded from the formal financial system.
Bagudu described the more than 300,000 beneficiaries already reached by CREDICORP as proof that the model works, noting that consumer credit remains significantly underdeveloped in Nigeria compared to advanced economies.
Minister of Youth Development, Comrade Ayodele Olawande, said the programme opens new opportunities for young entrepreneurs who have long struggled to secure business financing.
He said the initiative reflects the government’s resolve to move beyond promises by providing practical support that enables young people to establish and expand businesses.
Olawande encouraged Nigerian youths to embrace responsible borrowing and leverage the facility to create sustainable enterprises capable of generating employment.
Expanding access to Finance
Minister of Women Affairs, Hajiya Imaan Sulaiman-Ibrahim, said expanding access to finance is essential for achieving inclusive economic growth, particularly for women entrepreneurs who often face greater barriers in accessing credit.
She said the ministry would continue collaborating with CREDICORP to ensure women benefit from the initiative, noting that empowering female entrepreneurs strengthens families, communities and the national economy.
Managing Director and Chief Executive Officer of CREDICORP, Mr. Uzoma Nwagba, said YouthCred for Entrepreneurs completes a three-stage programme that began with NYSC members before expanding to employed youths and now entrepreneurs.
He revealed that CREDICORP has already enabled over ₦47 billion in consumer credit for more than 300,000 Nigerians, while maintaining zero non-performing loans, a performance he attributed to robust credit education, careful beneficiary selection and partnerships with regulated financial institutions.
Nwagba said the corporation plans to expand the programme to 500,000 entrepreneurs and increase the value of credit disbursed to about ₦100 billion as additional funding becomes available.
He added that beyond empowering individual businesses, the initiative is expected to stimulate demand across industries by increasing purchases of machinery, equipment, vehicles, solar energy systems and other productive assets, thereby supporting local manufacturing, job creation and economic growth.
RN
