Business
By Benprince Ezeh
THE Central Bank of Nigeria, CBN, has issued guidelines for the implementation of the Tertiary Institutions Entrepreneurship Scheme, TIES.
Godwin Emefiele, governor of the CBN in a document issued last week, said that the scheme was pursuant to the CBN Act, 2007 and “as part of its policy measures to address rising youth unemployment and underemployment.”
According to the CBN, TIES is in partnership with the Nigerian polytechnics and universities to harness the potential of Graduate Entrepreneurs, Gradpreneurs in Nigeria.
“The scheme is designed to create a paradigm shift among undergraduates and graduates from the pursuit of white-collar jobs to a culture of entrepreneurship development for economic development and job creation.
“The scheme thus aims to provide an innovative financing model that will create jobs, enhance the entrepreneurial ecosystem and support economic growth and development,” the apex bank said.
According to the document, the activities covered under the scheme include innovative start-ups and existing businesses owned by graduates of Nigerian polytechnics and universities.
“Priority will be given to innovative entrepreneurial activities with high potential for export, job creation, and transformational impact.
“The take-off capital will be sourced from both the Agribusiness/Small and Medium Enterprise Investment Scheme, AgSMEIS,” the circular said.
However, the programme will focus on agribusiness, information technology, creative industry, and science and technology among other areas.
The apex bank added that the scheme is designed to be implemented through three components – term loan component; equity investment component and developmental component.
“The facility will have a 5-percent interest rate per annum (9 percent effective from March 1, 2022, or as may be prescribed by the CBN) with a maximum of 12 months moratorium on principal and interest.
“Prospective applicants are expected to attend mandatory entrepreneurship training with their respective Nigerian polytechnics and universities and certificates of completion issued to trainees.
“Interest payment and principal repayment shall be made on a monthly or quarterly basis by the obligor depending on the established cash flow cycle and in line with the approved repayment schedule.
“The equity investment component would be in the form of injection of fresh capital for start-ups, expansion of established businesses, or reviving of ailing entrepreneurial businesses,” Emefiele said.
First published – Oct. 25, 2021 @ 11:34 GMT | C.E
Tags: CBN Godwin Emefiele
