Godwin Emefiele, governor of the Central Bank of Nigeria
(CBN), on Thursday, launched the Tertiary Institutions Entrepreneurship Scheme
(TIES), an intervention aimed at tackling underemployment and unemployment
among Nigerian youth.
At the launch of the scheme in Abuja, Emefiele also
presented cheques ranging from N4.1-N5 million to graduate entrepreneurs whose
proposals were found worthy of CBN’s financing under the pilot scheme.
He charged the maiden beneficiaries of the TIES to utilise
the loans for the purpose it was given.
Emefiele said TIES was conceived as part of measures to promote entrepreneurship development among Nigerian graduates and undergraduates, with the release of the implementation guidelines and the opening of a portal for submission of applications in October 2021.
“The scheme,
developed in partnership with Nigerian polytechnics and universities, is designed
to harness the potentials of graduate entrepreneurs by creating a paradigm
shift from the pursuit of white-collar jobs to a culture of entrepreneurship
for economic development and job creation,” he said.
“Bridging their financing gaps and enhancing access to
low-cost credit to drive development of business is a task that can only be
addressed by an innovative financing model that correlates with the complexity
and dynamics of these small businesses.”
According to him, the TIES consisted of three main
components– the term loan, the equity investment and the development grant
component.
While the term loan component provides direct credit
opportunities to graduates of Nigerian polytechnics and universities of not
more than seven years post-graduation; the equity investment component is
designed to support start-ups, existing businesses requiring expansion, and
ailing businesses seeking resuscitation.
The third one – developmental grant component – is aimed at
raising awareness and visibility of entrepreneurship among undergraduates of
Nigerian tertiary institutions.
Under this component, Emefiele explained that polytechnics
and universities in the country will compete in a national biennial
entrepreneurship competition where undergraduates are presented by the tertiary
institutions to pitch innovative entrepreneurial or technological ideas with
transformational potential.
According to him, three top institutions at the regional
levels shall proceed to the national level, where the top five shall be awarded
grants ranging between N120 million and N250 million.
He insisted that the grant awards should be used by the
tertiary institutions solely for the development of the award-winning ideas.
At the ceremony, the CBN governor also inaugurated a body of
experts (BoE) to oversee the screening of prospective beneficiaries of the scheme.
The body, chaired by Abubakar Suleiman, the group managing
director/chief executive, Sterling Bank Plc, among other professionals, seeks
to evaluate and rank entrepreneurial presentations made by the tertiary
institutions under the development grant component.
Other members include Patrick Iyamabo, group chief financial
officer, First Bank; Adamu Lawani, general manager, Zenith Bank; Ngover
Ihyembe-Nwankwo, general manager, Coverage Rand Merchant Bank Nigeria; Ashafa
Ladan (National Universities Commission); Abbati D.K. Muhammad (National Board
for Technical Education); Friday Okpara of the Small and Medium Enterprises
Development Agency of Nigeria (SMEDAN).
Bolanle Adekoya, a partner at PwC Nigeria; Tope Fasua, chief
executive officer of Global Analytics Consulting Limited; Folusho Oyinlola,
(National Defence College); and Temitope Akin-Fadeyi, associate head, strategy
& policy development finance department, CBN, who acts as the body’s
secretary, make up the 11-member committee.
Also speaking at the launch, Boss Mustapha, the secretary to
the government of the federation (SGF), urged tertiary institutions to deploy
merit in the selection of the proposed beneficiaries of the scheme as well as
monitor key performance indicators as applications are submitted.
Represented by Olakunle Fashina, director, public affairs
and bilateral relations, office of the SGF, Mustapha said not only would the
TIES boost economic growth and reduce graduate unemployment but it would also
provide well-grounded incentives for the ever-growing graduate population.
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