FG Launches New Scheme for Youths To Borrow up to N5m for Business, Registration Portal Opens
- The federal government has launched a new programme offering youth-led MSMEs loans up to N5 million
- The loan will be offered at a single-digit interest rate to make it easy for repayment
- Partners for the programme include GIZ, Kaduna Business School, and Jaiz Bank
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Federal Government has launched a new financing initiative aimed at boosting Nigeria’s entrepreneurial ecosystem by providing affordable loans to youth-led businesses.
The scheme will give 6,122 Micro, Small, and Medium Enterprises (MSMEs) access to single-digit interest loans under the SMEDAN Inspire–Create–Start–Scale (ICSS) programme.
Source: Getty Images
Unveiled in Abuja on Tuesday, February 17, 2026, the initiative is a collaboration between the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and Kaduna Business School, with implementation support from GOPA Worldwide Consultants.
Jaiz Bank will manage the loan facility, AriseTV reports.
What to know about FG's youth scheme
Under the scheme, START loans range from N250,000 to N2 million, while SCALE loans range between N1 million and N5 million.
Speaking at the launch, Ayodele Olawande, the minister of youth development, said access to finance is a major obstacle for entrepreneurs, especially young people and underserved communities.
He described the programme as a strategic investment in productivity and sustainable growth rather than a social intervention.
Olawande said:
“Training alone is not enough. We must pair it with mentorship, financing, and market access to ensure young entrepreneurs can transform ideas into thriving businesses.”
He highlighted green growth, digital transformation, and skills development as priority areas.
Also, SMEDAN Director-General, Charles Odii, said the ICSS programme standardises entrepreneurship training in line with global best practices, enabling beneficiaries to become bankable and investment-ready.
He added:
“Many MSMEs have undergone training but could not access funding. ICSS now ensures that every graduate with a viable business plan can immediately qualify for financing."
FG's loan scheme targets
The initiative will prioritise women- and youth-led enterprises.
Source: Getty Images
While about 100 entrepreneurs are participating in the pilot phase, the programme targets 6,122 beneficiaries nationwide.
Punch reports that loans are intended to fund productive assets such as machinery, tools, and equipment to scale operations and create jobs.
Head of Development Cooperation at the German Embassy, Dr. Karin Jansen, said the programme demonstrates a sustainable model combining training, mentorship, and responsible financing.
One beneficiary, Rukayat Yusuf, who operates in natural cosmetics and agro-processing for export, said the facility would enable women entrepreneurs to expand production and access new markets.
The launch brought together government officials, development partners, financial institutions, and private sector stakeholders, underscoring a coordinated effort to empower MSMEs as drivers of economic growth.
To apply, this is the registration portal.
New credit scheme for women
In a related move, the Bank of Industry (BOI), together with the National Credit Guarantee Company (NCGC), has introduced a new credit scheme providing N10 billion in guaranteed loans for women entrepreneurs across Nigeria.
The programme, called GLOW (Guaranteed Loans for Women), aims to improve women’s access to affordable financing and boost their involvement in key economic sectors.
Under the initiative, NCGC will cover 25% of BOI’s loan portfolio as a credit guarantee.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
