The Ministry of Youth and Sports Development has cleared doubts about the disbursement of the Youth Investment fund, assuring that it is being done in phases.
A statement by the Director of Press said “The Ministry of Youth and Sports Development has been following with interest the reaction of some beneficiaries of the Nigeria Youth Investment Fund (NYIF), particularly those expressing disappointment at the N300,000.00 cap on disbursement under the first tranche of N12.5 billion.
Firstly, the framework specified 250k as the maximum for individual and eligible businesses that are critical can access up to 3m subject to meeting key criteria set in the guideline and conditions.
Considering the number of applications received, there was a need to ensure spread and enable more beneficiaries to enjoy the facility.”
The statement further stated “It is pertinent to state that the Ministry received over three million applications for the N12.5 billion that is available; and at the current cap of N300,000.00 per beneficiary, only about 41,000 beneficiaries can be covered.
The Ministry is desirous of reaching as many beneficiaries as possible, hence the decision to limit loans to the current amount.
We also know that some of the applicants have also benefitted from existing intervention, which has supported them and are impacting the economy.
It is important we start and increase gradually, considering that there are lots of first-time borrowers as well and that the programme double edge, which includes capacity building, mentoring, monitoring, and support will sustain the beneficiaries and guarantee the expected outcome. Higher loan thresholds would be possible once additional funds are available”.
The Ministry reaffirmed that NYIF is not a grant, but a loan targeted at supporting the youth to start small businesses or to inject funds into existing small businesses.