The Federal Executive Council has granted its consent for the disbursement of N60 billion from the Central Bank of Nigeria via the Agric Small and Medium Enterprises Investment Scheme to boost small business growth, particularly among young entrepreneurs nationwide.
This is contained in a statement by the Minister of Youth, Jamila Ibrahim, on Monday following the conclusion of the fourth FEC meeting in Abuja on Monday.
The Minister said that the funding from the apex bank would offer vital support to burgeoning enterprises run by young entrepreneurs, providing significant relief and enabling them to fortify and expand their businesses.
In addition, Ibrahim said that the Council approved the restructuring of the Nigeria Youth Investment Fund, aiming to institutionalize it through a legal framework, paving the way for the establishment of the Nigerian Youth Fund.
She explained that the fund, established in 2020, initially amounted to N75 billion, with annual releases of N25 billion designated for youth-led and youth-owned enterprises operating in priority sectors.
According to her, the FEC has endorsed the immediate disbursement of N25 billion from the 2023 Appropriation Act and an additional N25 billion from the 2024 Appropriation Act, designated under the Youth Development Fund.
Recommended reading: FEC approves construction of 28 Roads, Bridges nationwide at over N1.2 trillion
- “We also receive another additional approval from the Council for a N60 billion release from the Central Bank of Nigeria (CBN) through the Agric Small and Medium Enterprises Investment Scheme. This will go a long way to support young businesses and bring a lot of succour to young persons to strengthen and scale young businesses.
- “I am also pleased to announce the second Council’s approval to restructure and institutionalise the Nigeria Youth Investment Fund. This is a fund that was approved in 2020. Upon assumption of office of this administration, we commission a technical committee to review this fund and restructure it with the aim of institutionalizing it through a legal framework which will lead to the establishment of the Nigerian Youth Fund.
- “The fund was initially a N75 billion fund with N25 billion annual releases for youth-lead and youth-owned enterprises in priority sectors. We have secured the Council’s approval for the immediate release of N25 billion from the 2023 appropriation Act and an additional N25 billion from the 2024 appropriation Act under the youth development fund,” she said.
Furthermore, the Minister highlighted the significance of a distinct approach in executing the revamped Youth Investment Fund, which includes the formation of clusters.
According to her, these clusters aim to foster mutual assistance among young entrepreneurs, enabling them to provide cross-guarantees for each other.
- “A strategy that actually stands out in the implementation of the revamp Youth Investment Fund will be the establishment of clusters. These clusters will ensure that young people cross-guarantee each other.
- “And the clusters will focus on commodities of comparative advantage across the six geopolitical zones,” she added.
30% Youth quota in all Government Appointments
Ibrahim further stated that the FEC had given its approval for a 30% youth quota in all government appointments, with a specific provision for ensuring fair representation of young women within this quota.
She emphasized that this step would greatly alleviate the marginalization and exclusion of young individuals from decision-making roles. Additionally, it would play a pivotal role in motivating youth to actively engage in decision-making processes and civic activities.
- “I am delighted to brief the gentlemen and women of the press that we have received the Council’s approval to institutionalize a 30% youth quota in all government appointments and equitable young women inclusive in this 30%.
- “This will go a long way to address the marginalization and exclusion of young people in decision-making. It will also go a long way to encouraging young people to participate in decision-making processes and civic engagement.
- “This will in turn lead to young people contributing tremendously to the national development agenda,” she added.