According to Sunday Dare, minister of youth and sports development, on July 22, announced that the federal executive council approved the establishment of NYIF to the tune of N75 billion to address youth unemployment in the country.

The fund is dedicated to investing in the innovative ideas, skills, talents and enterprise of the Nigerian youth with the aim of turning them into entrepreneurs.

The minister explained that the funding targets 500,000 youth annually and a minimum of N25 billion will be disbursed each year over the next three years, totalling N75 billion.

Dare said for the remaining part of 2020, an initial sum of N12.5 billion will be needed to commence the NYIF.

He added that the initiative, which is part of President Muhammadu Buhari’s plan to address unemployment in the country, will be sustained by successive governments.

“The fund aims to reach 500,000 youth annually between 2020 and 2023. Each fund approval will range from N250,000 to N50,000,000, with a spread across group applications, individual applications, working capital loans set at 1 year and term loans set at 3 years with single-digit interest rate of 5%,” he said.

The minister said disbursement of the fund will be through various channels, which will include microcredit organisations across the country the CBN supported by the Bank of Industry, fintech organisations and venture capital organisations registered with the CBN.

According to him, the ministry of finance, budget and national planning and the CBN will provide the initial financing for NYIF, while youth seeking to benefit from the fund must have genuine business ideas and registered business entities.