Have you been wondering why low amount was approved for your NYIF Loan? If yes, please kindly read through this post to know the reason why you may receive low NYIF Loan amount.
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 cap on disbursement under the first tranche of N12.5bn
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 numbers of applications received, there was need to ensure spread and enable more beneficiaries enjoy the facility. It’s pertinent to state that the ministry received over 3million applications for the N12.5 bn 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 and possible hence the decision to limit loans to the current amount. It may also interest you to know that some of the applicants have also benefitted much 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 programmes double edge, which includes capacity building, mentoring, monitoring and support will sustain the beneficiaries and guarantee expected outcome. Higher loan thresholds would be possible once additional funds are available.
The Ministry wishes to state again 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.