CBN introduces N500m entrepreneurship grants for graduates, undergraduates

The Central Bank of Nigeria says it will support youths in tertiary institutions with grants to promote entrepreneurship and reduce unemployment and reduce the trend of graduates seeking white-collar jobs but turn their attention to the creation of jobs.

It said the initiative called Tertiary Institutions Entrepreneurship Scheme, would be executed in partnership with Nigerian polytechnics and universities to harness the potential of graduate entrepreneurs (gradpreneurs).

It stated this in a circular, titled ‘Guidelines for the implementation of tertiary institutions entrepreneurship scheme’, dated October 2021.

The apex bank stated that the goal of the TIES was to enhance access to finance to undergraduates and graduates of polytechnics and universities in Nigeria with innovative entrepreneurial and technological ideas.

The CBN stated, “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 CBN said it would distribute N500 million among the top five tertiary institutions with the best pitch.

“Five top Nigerian polytechnics and universities with the best entrepreneurial pitches/ideas shall be awarded as follows: first place – N150m; second place – N120m; third place – N100m; fourth place – N80m; and fifth place – N50m,” it stated.

The apex bank stated that it ”shall constitute a Body of Experts (BoE) from the private and public sector for the biennial regional and national entrepreneurship competitions to evaluate entrepreneurial and technological innovations submitted by Nigerian polytechnics and universities. The Body of Experts (BoE) shall recommend projects with high potential and transformational impact for the grant award.”

It gave the key highlights of the scheme as projects financed under the Scheme shall be monitored by independent monitors jointly engaged by the CBN and PFI; would be operated for 10 years in the first instance (not exceeding 31st December 2031) depending on the complexity of the project; interest payment and principal repayment should 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.