By Joseph Erunke, Abuja The Federal Government on Wednesday launched the third phase of its YouthCred initiative, targeting 500,000 young entrepreneurs with access to loans ranging from N200,000 to N2 million without collateral. The programme, launched by the Nigerian Consumer Credit Corporation (CREDICORP) in partnership with the Federal Ministry of Finance, is designed to expand access to affordable credit by moving away from traditional collateral-based lending to a system built around responsible borrowing, cash flow and repayment history. Speaking at the launch in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, described the initiative as a major step towards unlocking the productive potential of young Nigerians and building a credit-driven economy. Oyedele said Nigeria has no shortage of entrepreneurs but has continued to struggle with limited access to affordable financing, which has prevented many businesses from expanding. He noted that many young entrepreneurs with viable ideas are unable to grow because they cannot raise capital to acquire equipment, purchase raw materials or scale their operations. “A young tailor cannot purchase industrial sewing machines. A software developer cannot acquire the tools needed to expand. A food processor cannot buy raw materials in bulk. Too often, promising businesses fail not because of poor ideas but because of lack of financing,” he said. The minister explained that the YouthCred entrepreneurial window would provide Nigerians aged between 18 and 35 with access to credit based on their financial behaviour, business cash flow and repayment discipline rather than inherited wealth or collateral. He urged Nigerians to change the perception that borrowing is only associated with financial hardship, stressing that responsible credit remains a key driver of economic growth in developed economies. “Responsible credit enables families to acquire productive assets, businesses to expand and investments to happen today instead of years later. Credit becomes a problem only when it finances consumption without productivity, but when it finances enterprise, it becomes an investment in future prosperity,” he said. Oyedele disclosed that the latest phase followed the successful implementation of two earlier components of the initiative. According to him, the first phase focused on National Youth Service Corps (NYSC) members, providing credit education to more than 51,000 young Nigerians, with over 30,000 progressing to responsible credit access. He added that the second phase, targeted at employed youths, had reached more than 81,000 beneficiaries nationwide. With the launch of the entrepreneurship component, the government is now extending support to young business owners, especially those operating within Nigeria’s informal sector. The minister said more than 90 per cent of the country’s micro, small and medium enterprises (MSMEs) are individually owned businesses, including tailors, mechanics, ride-hailing operators, fashion designers, food vendors, content creators and young farmers who are often excluded from conventional banking services due to lack of formal documents, audited accounts or collateral. He said the scheme would help such businesses formalise, expand their operations and create jobs. Oyedele linked the initiative to President Bola Tinubu’s economic reforms aimed at creating a system where access to opportunities is determined by integrity and financial responsibility rather than inherited advantage. He urged beneficiaries to see the loans as investments and not government handouts, stressing that repayment discipline would determine their ability to access larger financing opportunities in the future. “The greatest collateral is your integrity. Borrow wisely, invest productively, repay on schedule and build your credit history. That is how strong economies are built,” he said. Also speaking, Minister of Youth Development, Comrade Ayodele Olawande, described the programme as a landmark intervention for young Nigerians, particularly those operating in the informal economy. He disclosed that more than 30,000 NYSC members had already benefited from the initiative, encouraging young people to embrace responsible borrowing as a tool for building sustainable businesses. The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, and the Minister of Women Affairs, Imaan Sulaiman-Ibrahim, in their goodwill messages, commended the initiative, describing it as a major step towards expanding financial inclusion, boosting productivity and empowering young Nigerians. They praised CREDICORP’s approach to widening acce
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