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 Na…
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