FEC, CBN to fund SMEs targeted at young Nigerians

The Federal Executive Council (FEC) has sanctioned the disbursement of N60 billion from the Central Bank of Nigeria through the Agric Small and Medium Enterprises Investment Scheme.

Announcing this decision following the fourth FEC meeting in Abuja, Minister of Youth, Jamila Ibrahim, highlighted the crucial role this funding would play in supporting burgeoning enterprises led by young individuals, providing them with essential relief to strengthen and expand their businesses.

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Moreover, the Council greenlit the restructuring of the Nigeria Youth Investment Fund, with plans to institutionalize it via a legal framework, leading to the establishment of the Nigerian Youth Fund. Initially set at N75 billion in 2020, with annual releases of N25 billion, the fund targets youth-led and youth-owned enterprises in priority sectors.

The FEC has endorsed the immediate disbursement of N25 billion from the 2023 Appropriation Act and v additional N25 billion from the 2024 Appropriation Act, designated under the Youth Development Fund. Furthermore, an additional N60 billion release from the Central Bank of Nigeria through the Agric Small and Medium Enterprises Investment Scheme has been approved, aiming to provide substantial support to young businesses nationwide.

Minister Ibrahim emphasized the significance of a distinct approach in executing the revamped Youth Investment Fund, including the establishment of clusters to foster mutual assistance among young entrepreneurs, enabling them to provide cross-guarantees for each other. These clusters will focus on commodities of comparative advantage across the six geopolitical zones.

Additionally, the FEC has approved a 30% youth quota in all government appointments, with specific provisions to ensure fair representation of young women within this quota. Minister Ibrahim highlighted the importance of this step in alleviating the marginalization of young individuals from decision-making roles and encouraging their active participation in civic activities, ultimately contributing to the nation’s development agenda.