The Federal Executive Council (FEC) has granted its consent for the disbursement of N60 billion from the Central Bank of Nigeria (CBN) through its Agric Small and Medium Enterprises Investment Scheme to support small businesses, particularly among young entrepreneurs nationwide.
A statement issued by the Minister of Youth, Jamila Ibrahim, after the conclusion of the fourth FEC meeting in Abuja on Monday indicated that the funding from the apex bank would help enterprises run by young entrepreneurs to grow.
According to her, the FEC also approved the restructuring of the Nigeria Youth Investment Fund with a view to institutionalizing it through a legal framework.
The minister explained that the fund, which established in 2020, initially took off with N75 billion and annual disbursements N25 billion to youth-led and youth-owned enterprises operating in key sectors of the economy.
Ibrahim disclosed that FEC approved the immediate disbursement of N25 billion from the 2023 Appropriation Act and an additional N25 billion from the 2024 Appropriation Act, designated under the Youth Development Fund.
She further clarified: “We also receive another additional approval from the Council for a N60 billion release from the Central Bank of Nigeria (CBN) through the Agric Small and Medium Enterprises Investment Scheme. This will go a long way to support young businesses and bring a lot of succour to young persons to strengthen and scale young businesses.
“I am also pleased to announce the second Council’s approval to restructure and institutionalise the Nigeria Youth Investment Fund. This is a fund that was approved in 2020. Upon assumption of office of this administration, we commission a technical committee to review this fund and restructure it with the aim of institutionalizing it through a legal framework which will lead to the establishment of the Nigerian Youth Fund.
“The fund was initially a N75 billion fund with N25 billion annual releases for youth-lead and youth-owned enterprises in priority sectors. We have secured the Council’s approval for the immediate release of N25 billion from the 2023 appropriation Act and an additional N25 billion from the 2024 appropriation Act under the youth development fund”, the minister added.
The Minister further spoke on the significance of a distinct approach in executing the revamped Youth Investment Fund, which includes the formation of clusters to foster mutual assistance among young entrepreneurs, enabling them to provide cross-guarantees for each other.
Ibrahim also disclosed that the FEC had given approval for a 30% youth quota in all government appointments, with a specific provision for ensuring fair gender representation in the quota.
