FG unveils N650 billion funding for youth enterprises, MSMEs

The Federal Government has introduced a N650 billion facility aimed at providing affordable short-term financing to youth-owned businesses, manufacturers, and Micro, Small, and Medium Enterprises (MSMEs) across the nation.

This initiative is part of the economic reforms developed by the 31-member Presidential Economic Coordination Council (PECC), which was inaugurated by President Bola Tinubu on Thursday.

Announcing the initiative, Ajuri Ngelale, Special Adviser to President Tinubu on Media and Publicity, highlighted that the N650 billion fund will support eligible youth-owned businesses, manufacturers, and MSMEs in sectors such as food processing, pharmaceuticals, agriculture, and retail trade. The financing will be determined by current and future receivables, company ratings, and market demand.

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The Economic Stabilization Programme, launched alongside the facility, aims to bolster new and existing youth-owned enterprises across all 36 states, targeting the creation of 7,400 MSMEs within the next 6 to 12 months.

Additional measures include the Sub-national Matching Fund, offering single-digit interest loans through the Bank of Industry and expanding the Rural Development Programme to support rural economies by developing 300 new MSMEs per state, resulting in 11,100 new rural-based MSMEs nationwide.

These initiatives are expected to enhance access to finance for MSMEs and create 4.7 million direct and indirect jobs over the next year. The PECC, chaired by President Tinubu, includes key political leaders and prominent figures from the private sector, such as Alhaji Aliko Dangote and Mr. Tony Elumelu.