The Central Bank announced on Thursday that it was setting aside a sum of N2.5 billion for members of the National Youth Service Corps. According to reports the funds will be disbursed to the corps members under the Youth Entrepreneurship Development Programme (YEDP).
The CBN claims it is targeting to create one million jobs through the YEDP, which by the way is an initiative of the Ban and a signature policy of CBN Governor, Mr. Godwin Emefiele.
What we know so far?
- Youth Corp Members who need this loan will have to use it for start-ups and expansion projects in the agricultural value chain (fish farming, poultry and snail farming), cottage industry, mining and solid minerals.
- It is also available for tourism, arts and crafts, Information and Communications Technology and any other activity that may be determined by the CBN.
- The only collateral you need to access this loan is their NYSC discharge certificates as well as their degree certificates
- Each corp member is entitled to a loan of N3 million to operate the business
- The CBN Governor also believes this loan will help it to conserve the huge foreign exchange, which was currently being spent to import food items.
- The CBN also claims the loans must be repaid and that it is not a grant.
- The CBN by law can support any section of the economy via development programs by giving out loans or grants.
Here is what the CBN Governor said about this loan;
“It is not a grant and it is a loan that must be repaid. We are determined to give support to the youth and I truly must thank the National Youth Service Corps, which has helped us to put together the first set of NYSC beneficiaries so that we can nurture them as young entrepreneurs, not as people who go into the world looking for jobs.
“We want to nurture them as people who are developing the entrepreneurial spirit and entrepreneurial skills; not only for their good, but also for the good of the country.
I don’t think that somebody who has a degree certificate or HND certificate to get gainful employment or a gainful life will abandon his certificate or his NYSC discharge certificate just because he wants to take a loan and not pay back.”
The CBN is yet to publish guidelines for accessing this loan or how the first batch of borrowers obtained the loans.
