The Federal Government has launched YouthCred for Entrepreneurs, a new collateral-free loan programme designed to provide financing for up to 500,000 young entrepreneurs across Nigeria, as part of efforts to expand access to credit and stimulate youth-led enterprise.
The initiative, unveiled in Abuja, offers eligible young business owners loans ranging from ₦200,000 to ₦2 million to support the establishment, expansion and sustainability of small businesses. The programme is being implemented by the Nigerian Consumer Credit Corporation (CREDICORP) under the oversight of the Federal Ministry of Finance.
According to government officials, the scheme targets young Nigerians who are already generating income through existing businesses or viable entrepreneurial ventures but have struggled to access affordable financing due to the lack of collateral.
Speaking at the launch, the Minister responsible for youth development described the programme as a major step toward expanding economic opportunities for young people and promoting financial inclusion.
He explained that the initiative forms part of the Federal Government’s broader objective of empowering one million young Nigerians by improving access to credit, encouraging entrepreneurship and helping beneficiaries establish a positive credit history.
Unlike many conventional lending programmes, YouthCred for Entrepreneurs does not require physical collateral. Instead, applicants will undergo eligibility assessments and receive financial literacy training intended to strengthen business management skills and improve loan repayment capacity.
Officials disclosed that the programme offers flexible repayment terms of up to 12 months, enabling beneficiaries to repay their loans while continuing to grow their businesses.
The government also noted that previous YouthCred lending programmes have recorded a 0 per cent non-performing loan rate, a performance attributed to careful screening, borrower education and continuous monitoring.
Participating financial institutions across the country will partner with CREDICORP to process applications, disburse funds and provide ongoing support to beneficiaries.
Economic analysts have welcomed the initiative, noting that limited access to affordable credit remains one of the biggest challenges facing young entrepreneurs in Nigeria. They argue that expanding financing opportunities for small businesses could stimulate innovation, create employment and contribute to economic diversification.
However, experts emphasise that the programme’s long-term success will depend on transparent implementation, effective monitoring and timely loan disbursement. They also recommend complementary measures such as business development support, mentorship and improved access to markets to maximise the impact of the scheme.
Youth advocacy groups have similarly praised the initiative while urging the government to ensure that the application process remains transparent, inclusive and accessible to entrepreneurs in both urban and rural communities.
The launch comes as Nigeria continues efforts to address youth unemployment and strengthen the role of small and medium-sized enterprises (SMEs) in driving economic growth. Policymakers believe that improving access to finance will enable more young Nigerians to transform business ideas into sustainable enterprises.
Applications for the programme are now open through the YouthCred platform, with partner financial institutions expected to facilitate nationwide implementation and provide support throughout the loan cycle.
Observers say the initiative represents another effort to deepen financial inclusion and build a stronger entrepreneurial ecosystem capable of supporting long-term economic development and job creation across Nigeria.
