Federal Government Unveils New Loan Scheme for Youth Entrepreneurs
The Federal Government of Nigeria has officially launched a groundbreaking financing initiative designed to empower youth-led Micro, Small, and Medium Enterprises (MSMEs) across the nation. This new programme, known as the SMEDAN Inspire–Create–Start–Scale (ICSS) initiative, provides eligible entrepreneurs with access to loans of up to N5 million, offered at highly competitive single-digit interest rates to facilitate easier repayment and foster business growth.
Key Details of the Youth Loan Programme
Announced in Abuja on Tuesday, February 17, the scheme is a collaborative effort involving the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and Kaduna Business School. Implementation support is being provided by GOPA Worldwide Consultants, with Jaiz Bank managing the loan facility to ensure efficient disbursement and oversight.
Under this initiative, loans are categorised into two tiers: START loans, which range from N250,000 to N2 million, and SCALE loans, offering between N1 million and N5 million. These funds are specifically intended to finance productive assets such as machinery, tools, and equipment, enabling businesses to scale operations, enhance productivity, and create new job opportunities.
Government and Partner Statements
At the launch event, Ayodele Olawande, the Minister of Youth Development, emphasised that access to finance remains a significant barrier for many entrepreneurs, particularly young individuals and underserved communities. He described the programme as a strategic investment aimed at driving sustainable economic growth rather than merely a social intervention.
"Training alone is not enough. We must pair it with mentorship, financing, and market access to ensure young entrepreneurs can transform ideas into thriving businesses," Olawande stated. He further highlighted priority areas including green growth, digital transformation, and skills development as focal points for the initiative.
Charles Odii, the Director-General of SMEDAN, added that the ICSS programme standardises entrepreneurship training in alignment with global best practices, making beneficiaries more bankable and investment-ready. "Many MSMEs have undergone training but could not access funding. ICSS now ensures that every graduate with a viable business plan can immediately qualify for financing," he explained.
Target Beneficiaries and Programme Impact
The loan scheme prioritises women- and youth-led enterprises, with an initial pilot phase involving about 100 entrepreneurs. Overall, the programme aims to benefit 6,122 MSMEs nationwide, providing them with the financial resources needed to expand their operations and access new markets.
Dr. Karin Jansen, Head of Development Cooperation at the German Embassy, praised the initiative as a sustainable model that effectively combines training, mentorship, and responsible financing. One beneficiary, Rukayat Yusuf, who operates in natural cosmetics and agro-processing for export, expressed optimism that the facility would enable women entrepreneurs to scale production and explore international market opportunities.
Related Initiative for Women Entrepreneurs
In a complementary move, the Bank of Industry (BOI) and the National Credit Guarantee Company (NCGC) have introduced the GLOW (Guaranteed Loans for Women) scheme. This programme allocates N10 billion in guaranteed loans to women entrepreneurs, with NCGC covering 25% of BOI's loan portfolio as a credit guarantee, aimed at enhancing women's access to affordable financing and boosting their participation in key economic sectors.
The launch event brought together government officials, development partners, financial institutions, and private sector stakeholders, underscoring a coordinated effort to empower MSMEs as vital drivers of Nigeria's economic growth and development.
