Big Funding Opportunity for Nigerian Young Entrepreneurs
The Bank of Industry (BOI) has earmarked N2 billion as loan support for young entrepreneurs to fund, launch and expand their businesses.
The bank stated that the financing is available to qualified Nigerian entrepreneurs who satisfy its conditions, such as registration with the Corporate Affairs Commission (CAC) and other due diligence requirements.
Lawal Khaleel, a Project Officer at BOI, made this known during a stakeholders’ meeting on the Inclusive Economic Empowerment (IEE) Project, which is funded by the British Council and implemented by the Centre for Information Technology and Development (CITAD) in Kano.
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Khaleel stated that the bank’s lending rates presently fall between 10 and 13 percent, depending on the type and size of the loan, and added that eligible micro and larger businesses can obtain the financing.
He noted that access to finance continues to be one of the biggest challenges confronting businesses in Northern Nigeria, especially owing to worries about interest rates.
“Our mandate is to industrialise the country but the major obstacles here in the North is lack of access to finance because of the interest issue,” Khaleel said.
Khaleel said that in order to tackle the concerns of businesses seeking financing that aligns with non-interest banking principles, BOI had secured a licence from the Central Bank of Nigeria (CBN) to begin non-interest banking operations.
He clarified that the bank’s mandate centres on industrialising Nigeria rather than generating profit, and added that BOI carries out due diligence before granting loans.
Khaleel also observed that certain entrepreneurs encounter bureaucratic hurdles when seeking financing through digital platforms, which can make it hard for businesses to secure loans.
He urged CITAD to help young entrepreneurs in the IEE project put together viable business plans and turn to BOI for financing.
The IEE Project aims to tackle unemployment and underemployment among young people by linking skills development with opportunities in the labour market and enterprise.
Haruna Adamu Hadejia, a Programme Officer at CITAD, said the project was created to tackle the challenges confronting young people, whom he called key drivers of economic growth.
In a presentation titled “Bridging Youth Skills and Labour Market and Enterprise Needs,” CITAD’s Isa Garba said that between 42 and 55 percent of Nigerian youths are unemployed or underemployed.
Garba said Kano recorded a youth unemployment rate of 29.4 percent and an underemployment rate of 32.06 percent, while pointing to a substantial gap between the skills produced by educational institutions and those demanded by employers and businesses.
He estimated the critical skills gap at about 67 percent and called for greater collaboration among government, financial institutions, businesses, development organisations and other stakeholders to tackle the mismatch.
Tijjani Sarki, a Director at the Kano Chamber of Commerce, Industry, Mines and Agriculture (KACCIMA), said the chamber works mainly with small-scale businesses, noting that access to loans remains one of their biggest challenges.
He said that better access to affordable financing would enable small businesses to strengthen their operations and contribute more to employment and economic activity.
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In the meantime, 50 successful applicants were chosen for the IEE Project, through which the beneficiaries are expected to receive support designed to enhance their skills and access to enterprise opportunities.
The BOI financing opportunity offers another possible source of capital for eligible young entrepreneurs looking to set up or grow businesses, while the planned non-interest banking operations could offer an extra financing option for businesses worried about conventional interest-based lending.
