Government Rolls Out Financial Support Programs to Combat Economic Challenges
The administration of President Bola Tinubu has introduced several loan and grant schemes designed to help Nigerians cope with mounting economic hardships, unemployment, and rising poverty levels. With over 139 million citizens living in multidimensional poverty and approximately 80 million youths reportedly jobless, these initiatives aim to provide crucial financial relief across various sectors of society.
Five Key Government Financial Schemes Available
Nigerian Education Loan Fund (NELFUND)
Established to ease the financial burden on struggling parents and students, NELFUND provides interest-free loans for students in public universities. Despite initial slow applications due to debates about subsidies versus loans, the program has gained significant traction. As of July 2025, over 396,000 Nigerian students have collected N77 billion in loans to cover tuition and living expenses.
Students receive not only tuition coverage but also a monthly stipend of N20,000 during their learning period. Eligibility requires Nigerian citizenship with a National Identity Number and Bank Verification Number. Applicants must not be on any other education loan or government-sponsored scholarship scheme. Repayment begins two years after the National Youth Service Corps program, with 10% deducted from the beneficiary's salary or 10% of profits for self-employed individuals.
Consumer Credit Scheme (CrediCorp)
This Development Finance Institution scheme facilitates access to consumer credit for working Nigerians through three main projects:
- Project C.A.L.M.: Provides low-interest loans for converting vehicles to Compressed Natural Gas or installing solar energy systems
- Project S.C.A.L.E.: Targets local industries by providing consumer credit to enterprises purchasing from local vendors
- YouthCred: Designed for young Nigerians, especially NYSC members, offering loans ranging from N5,000 to N5 million
The Nigerian Consumer Credit Corporation has already disbursed N3.5 billion to beneficiaries through participating financial institutions.
MSME Loans
Targeting micro, small, and medium enterprises, this government initiative aims to reduce production costs, create jobs, and enhance agricultural productivity. The Bank of Industry offers single-digit interest loans up to ₦5 million per business with 9% interest, a 3-month moratorium, and up to 3 years tenure. Recently, the Nigerian government sought a fresh $500 million World Bank loan to further support MSMEs.
Tertiary Institutions Staff Support Fund (TISSF)
This Federal Ministry of Education and Tetfund-funded program supports academic and non-academic staff in tertiary institutions. The fund offers a maximum of N10 million with a 5-year repayment term across six utility areas: medical support, family support, SME support, education advancement, accommodation support, and transport support.
Presidential Conditional Grant Scheme
This unique scheme provides financial grants to Nano businesses without repayment obligations. The grant offers N50,000 to small businesses in sectors including trading, food services, ICT, transportation, creatives, and artisans. The program targets 70% women and youth, with 10% reserved for persons with disabilities and 5% for senior citizens. While the government aimed for 1,000,000 beneficiaries across all Local Government Areas and the FCT, reports indicate that nearly 900,000 Nigerians have already benefited from the conditional grant.
Addressing Nigeria's Economic Realities
These financial initiatives come at a critical time when many Nigerians face severe economic challenges. The rising cost of education has become particularly burdensome, with many government universities increasing tuition by over 100%, effectively shutting hundreds of Nigerians out of university education. The government maintains that its economic reforms are beginning to show positive results, with these loan and grant schemes representing tangible support mechanisms for citizens navigating the current economic landscape.
The variety of programs available ensures that different segments of the population—from students and academic staff to small business owners and nano entrepreneurs—can access financial support tailored to their specific needs and circumstances.
